Mini Exercises (The forms you need are on pages 89-90 of the Study Guide and Working Papers.) Forming a Partnership 1. Alice Hall and Jim Brown enter into a partnership. On July 1, 200X, Alice invests $5,000 cash in the partnership. Jim invests $2.000 cash and store equipment worth $6,000 with accumulated depreciation of $2,000. The equipment has a current appraised value of $7,000. Prepare a journal entry to record this transaction. Division of Net Income 2. James Slater, Scupper Ring, and Molly Flynn invested $2,000, $4000, and $6,000, respectively. At the end of the first year, the company's net income was $21,000. Assuming no agreement was reached on how to share net income, prepare a journal entry at closing to allocate net income. Division of Net Income based on Beginning Capital Balances 3. If the partners in Mini Exercise 2 share net income based on their beginning capital investments, what would be the journal entry at closing to allocate net income? Calculating Total Salary and Interest Allowance 4. If the partners in Mini Exercise 2 have the following agreement, please calculate the total salary and interest allowance: a. Salary Allowance: Slater, $7,000; Ring, $6,000; and Flynn, $4,000. b. 10% interest on capital investments. Share of Net Income to Partners; Deficit Sharing 5. Using your answer in Mini Exercise 4, how much more income is to be distributed to the partners (assume each shares equally) after the salary and interest allowance? If net income was $17,990, how much would the partners share in the deficit