On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $282,000 cash and $364,000 of equipment, respectively. The partnership also assumed responsibility for a $42,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $152,000, both are to receive an annual interest allowance of 5% 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, 2020, Adams withdrew cash of $102,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $400,000. On June 1, 2021, Peter Williams invested $122,000 and was admitted to the partnership for a 20% interest in equity. Required: 1. Prepare journal entries for the following dates.

a. June 1, 2020

b. November 20, 2020

c. May 31, 2021

d. June 1, 2021

2. Calculate the balance in each partners capital account immediately after the June 1, 2021, entry.

View transaction list Journal entry worksheet 1 > Record the formation of partnership. Note: Enter debits before credits. Date General Journal Debit Credit June 01, 2020 Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 > Record the withdrawal by partner. Note: Enter debits before credits. General Journal Debit Credit Date Nov 20, 2020 Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 > Record the closing of profit to capital. Note: Enter debits before credits. General Journal Debit Credit Date May 31, 2021 Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 > Record the admission of Williams for a 20% interest. Note: Enter debits before credits. General Journal Debit Credit Date June 01, 2021 Record entry Clear entry View general journal Bow, capital Aisha Adams, capital Williams, capital