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On February 1, 2023, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $98,000 cash and Xie contributed land valued at $138,000
On February 1, 2023, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $98,000 cash and Xie contributed land valued at $138,000 and a small building valued at $198,000. Also, the partnership assumed responsibility for Xies $148,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $108,000, both are to receive an annual interest allowance of 12% of their original capital investments, and any remaining profit or loss is to be shared equally. On November 20, 2023, Williams withdrew cash of $78,000 and Xie withdrew $63,000. After the adjusting entries and the closing entries to the revenue and
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