Exercise 15-2 Tom and Julle formed a management consulting partnership on January 1, 2016. The fair value of the net assets Invested by each partner follows: Tom Julle Cash Accounts receivable omce supplies Office equipment Land Accounts payable Mortgage payable $12,500 $11,300 8,400 6,000 1,900 900 27,300 28,300 2,200 5,500 19,600 During the year, Tom withdrew $13,900 and Julie withdrew $10,900 in anticipation of operating profits. Net profit for 2016 was $51,300, which is to be allocated based on the original net capital investment. (a) Your answer is partially correct. Try again. Prepare journal entries to: 1. Record the initial investment in the partnership. 2. Record the withdrawals 3. Close the Income Summary and Drawing accounts. (Round intermediate calculations to 6 decimal places, e.g. 1.576843 answers to o decimal places, e.g. 5,125. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit No. Account Titles and Explanation 1. Cash 12500 8400 Accounts Receivable 1900 office Supplies 27300 Toffice Equipment 2200 Prepare journal entries to: 1. Record the initial investment in the partnership 2. Record the withdrawals 3. Close the Income Summary and Drawing accounts. (Round Intermediate calculations to 6 decimal places, e.g. 1.576843 answers to o decimal places, e.g. 5,125. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1. Cash 12500 . Accounts Receivable 8400 Office Supplies 1900 Office Equipment 27300 G Accounts Payable 2200 Tom, Capital (To record initial investment by Tom) Cash 11300 6000 Accounts Receivable 900 Office Supplies 28300 Land 5500 Accounts Payable 19600 Mortgage Payable Julie, Capital (To record initial investment by Julie) Accounts Payable 2200 Tom, Capital (To record initial investment by Tom) Cash 11300 Accounts Receivable 6000 Office Supplies 900 Land 28300 5500 Accounts Payable 19600 Mortgage Payable Pulle, Capital (To record initial investment by Julie) 2 13900 Tom, Drawing 13900 Cash (To record Tom's drawings) 10900 Julie, Drawing INC 10900 Cash (To record Julie's drawings) 51300 3. Tincome Summary Tom, Capital Julie, Capital (To close Income summary account) Frame CALCULATOR PRINTER VERSION BACK NEXT Umice Suppe YOU Land 28300 Accounts Payable 5500 Mortgage Payable 19600 Julie, Capital (To record initial investment by Julie) 2 Tom, Drawing 13900 Cash 13900 (To record Tom's drawings) 10900 Julie, Drawing . Cash 10900 (To record Julie's drawings) 3. Income Summary 51300 Tom, Capital Julie, Capital (To dose Income summary account) 13900 Tom, Capital 10900 SR Julie, Capital 13900 Tom, Drawing 10900 Julie, Drawing (To dose drawings accounts) SHOW LIST OF ACCOUNTS
