End of Chapter Exercise 8.13 Wendy, William and Wanda are independent website developers who had been trading in active opposition to one another for some years. They decide to form a partnership, WWW Web Developers, as from 1 January 2018. The agreement set out the following basic arrangements. Wendy to contribute $8,500 in cash, computers valued at $10,600 and debtors of $12,700. William to contribute a lease of premises used by him, such a lease to be regarded as having a capital value of $13,300, computers of $10,600 and $6,400 in cash. Wanda to contribute computers valued at $14,600 and to act as managing partner at a salary of $21,200 per year. Interest for the period is to be allowed partners at the rate of 6% p.a. on beginning capital but is not charged on drawings. Profits or losses to be shared in the same proportions as capital contributed. Prepare the journal entries necessary to open the records of the partnership. (Ignore GST.) (Enter all debit entries first, followed by all credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Particulars Debit Credit Cash at bank 1 8500 Computers 10600 Debtors 12700 Wendy, capital 31800 (To record the initial investment of Wendy) Lease of premises 13300 Computers . 10600 Cash at bank + 6400 William, capital 30300 4 (To record the initial investment of William) Computers 14600 Wanda, capital 14600 (To record the initial investment of Wanda) Assuming in the first year that the partnership makes a profit of $68,900, show how this profit would be allocated to partners. (Round answers to 0 decimal places, e.g. 5,275. Keep all decimal places when calculating the proportion of capital to allocate to the residual profit, e.g. only round your final answer and not any of your working amounts.) Allocation of $68,900 profit Wendy William Wanda Total Salary Interest on capital Total salary and interest Residual profit $ $