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On June 1 , 2 0 2 3 , Jill Bow and Aisha Adams formed a partnership to open a gluten - free commercial bakery,

On June 1,2023, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $285,000 cash and $370,000 of equipment, respectively. The partnership also assumed responsibility for a $45,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $155,000, 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 20,2023, Adams withdrew cash of $105,000. At year-end, May 31,2024, the Income Summary account had a credit balance of $430,000. On June 1,2024, Peter Williams invested $125,000 and was admitted to the partnership for a 20% interest in equity.vOn June 1,2023, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $285,000 cash and $370,000 of equipment, respectively. The partnership also assumed responsibility for a $45,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $155,000, 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 20,2023, Adams withdrew cash of $105,000. At year-end, May 31,2024, the Income Summary account had a credit balance of $430,000. On June 1,2024, Peter Williams invested $125,000 and was admitted to the partnership for a 20% interest in equity.

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