Omar Mndez and Rafael Cuadrado decide to form a company that began operations on January 2, 2021. Mndez invests $ 8,800 in cash and Account Receivable for a value of $ 22,000 less Allowance for Doubtfull Accounts of $ 2,200. Square provides $ 16,500 in cash and equipment with a book value of $ 6,600 and a fair market value of $ 11,000. Both agreed to contribute 50% of the capital of the company.

The Partnership Agreement specifies that Mndez will have a salary of $ 20,000 and Square of $ 25,000. Each partner will also have an interest income equivalent to 10% of their initial capital balance and the remaining income will be divided equally.

As of December 31, 20210 there were the following balances in General Ledger:

Service Revenue $ 135,200

Total Expenses 43,200.

O Mndez-drawings 5,500

R Square-drawings 3,300

O Mendez-additional investment 15,000

R Additional square-investment 6,000

Total Liabilities 25,000

Prepare:

1. Jornal tickets to recognize the additional investment of the partners.
2. Income Statement
3. Owners Equity Statement
4. Portion of Liabilities and Owners Equity on the Balance Sheet