On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $283,000 cash and $366,000 of equipment, respectively. The partnership also assumed responsibility for a $43,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $153,000, 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, 2020, Adams withdrew cash of $103,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $410,000. On June 1, 2021, Peter Williams invested $123,000 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

• Record the formation of partnership

b. November 20, 2020

• Record the withdrawal by partner

c. May 31, 2021

• Record the closing of profit to capital. d. June 1, 2021
• Record the admission of Williams for a 20% interest. 2. Calculate the balance in each partners capital account immediately after the June 1, 2021, entry.

Bow, capital Aisha Adams, capital Williams, capital