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1. Alpha and Bravo form a partnership on May 1,2017. Alpha contributes cash of $50,000, Bravo conveys title to the following properties to the partnership: Book Value $15,000 35,000 Fair Value $28,000 36,000 Land. The partners agree to start their partnership with equal capital balances. No goodwill is to be recognized. According to the articles of partnership, compensation, drawings, profits and losses are allocated based upon the following formula: . Alpha receives a compensation of $1,000 per month. . All remaining profits and losses are split 60:40 to Bravo & Alpha respectively . Each partner can make annual cash drawings of $5,000 beginning in 2018. Net income of $11,000 is earned by the business during 2017. Charlie is invited to join the partnership on January 1,2018. Because of his business reputation and financial expertise, he is given a 40% interest for $54,000 cash. The bonus approach is used to record this investment, made directly to the business. The articles of partnership are amended to give Charlie a $2,000 compensation allowance per month and an annual cash drawing of $10,000. Remaining profits and losses are now split 48:12:40 to Bravo, Alpha and Charlie respectively All drawings are taken by the partners during 2018. At year-end, the partnership reports an earned net income of $28,000 Record all partner-related journal entries for 2017 &2018 including the partnership formation, admission of the new partner, income summary closing entries to the partner's capital accounts(assume all revenue and expenses have been closed to the income summary account), drawing entries and closing entries for drawing accounts. Also prepare Schedules of Allocation of Income for years 2017 and 2018 as well as Statements of Partners' Capital as of December 31, 2017 and 2018

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