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On February 1, 2023, Tessa Williams and Audrey Xle formed a partnership in Ontarlo. Williams contributed $80,000 cash and Xie contributed land valued at $120,000
On February 1, 2023, Tessa Williams and Audrey Xle formed a partnership in Ontarlo. Williams contributed $80,000 cash and Xie contributed land valued at $120,000 and a small bullding valued at $180,000. Also, the partnership assumed responsibility for Xie's $130,000 long-term note payable assoclated with the land and bullding. The partners agreed to share profit or loss as follows: Williams Is to recelve an annual salary allowance of $90,000, both are to recelve an annual interest allowance of 20% of thelr original capital Investments, and any remaining profit or loss is to be shared equally. On November 20,2023 . Williams withdrew cash of $60,000 and Xle withdrew $45,000. After the adjusting entrles and the closing entrles to the revenue and expense accounts, the Income Summary account had a credit balance of $160,000 Required: 1. Present general journal entrles to record the initial capital investments of the partners, thelr cash withdrawals, and the December 31 closing of the income Summary and withdrawals accounts
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