6 Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2013, O'Donnell invests a building worth $54,000 and equipment valued at $20,000 as well as $16.000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances oints To entice O'Donnell to join this partnership, Reese draws up the following profit and loss Print agreement ODonnell will be credited annually with interest equal to 10 percent of the beginning O'Donnell will also have added to his capital account 10 percent of partnership References capital balance for the year income each year (without regard for the preceding interest figure) or $5.000. whichever is larger. All remaining income is credited to Reese . Neither partner is allowed to withdraw funds from the partnership during 2013. Thereafter, each can draw $5.000 annually or 15 percent of the beginning capital balance for the year, whichever is larger The partnership reported a net loss of $6.000 during the first year of its operation. On January 1, 2014. Terri Dunn becomes a third partner in this business by contributing $6,000 cash to the partnership. Dunn receives a 10 percent share of the business's capital. The profit and loss agreement is altered as follows ODonnell is still entitied to (1) interest on his beginning capital balance as well as (2) Any remaining profit or loss will be split on a 6:4 basis between Reese and Dunn, the share of partnership income just specified. respectively Partnership income for 2014 is reported as $60.000. Each partner withdraws the full amount that is allowed. On January 1, 2015. Dunn becomes ill and sells her interest in the partnership iwith the consent of the other two partners) to Judy Postner Postner pays $45.000 directly to Dunn. Net income for 2015 is $62.000 with the partnes again taking their full drawing allowance on January 1. 2016. Posztner withdraws from the business for personal resons. The articles of partnership state that any partner may leave the partnership at any time and is entitied to receive cash in an amount equa to tne recorded capital balance at that time plus 10 percent o. Prepare journal entries to record the preceding transactions on the assumption thet the bonus for no revaluation method is used. Drawings need not be recorded atnough the baiances shoud be inciuded in the ciosing entries. If no entry is required for o transaction event, select "No journal entry required" In the first account fleld. Round your answers to the nearest doller emount No General U Debit Credit