In June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $297,000 cash and $394,000 of equipment, respectively. The partnership also assumed responsibility for a $57,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $167,000, both are to receive an annual interest allowance of 10% of their original capital investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $117,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $550,000. On June 1, 2021, Peter Williams invested $137,000 and was admitted to the partnership for a 20% interest in equity. Required: 1. Prepare journal entries for the following dates.

Required: 1. Prepare journal entries for the following dates.

a. June 1, 2020 Record the formation of partnership

b. November 20, 2020 Record the withdrawal by partner

c. May 31, 2021 Record the closing of profit to capital.

d. June 1, 2021 Record the admission of Williams for a 20% interest.

2. Calculate the balance in each partners capital account immediately after the June 1, 2021, entry.