Question 5 (15 marks) Part A On 1 October 2020 James Achmed and Emilia Janet decided to form a partnership, J & E Contractors, by combining the net assets of their separate businesses. James contributed the following net assets to the partnership: Cash Accounts Receivable Equipment Accounts Payable Book Fair value value 19,000 19,000 29,000 28,800 137,000 96,000 26,000 26,000 Emilia contributed a building worth $421,000, land worth $351,000 and motor vehicles with a book value of $86,000 and a fair value of $61,000. The partnership also agreed to take over the Emilia's business mortgage of $651,000. Required: Prepare the journal entries necessary to record the initial investments of J & E Contractors to the partnership. Ignore GST. (3 marks) Part B In addition to the information provided in Part A, the partnership agreement contains the following provisions: Annual partner salaries are paid on the basis of $86,000 to James and $81,000 to Emilia. Interest on opening capital balances, drawings and advances are charged at 5% per annum. Residual profits are divided proportionately on the basis of the partners' initial capital contribution. Additional information: On 1 January 2022, James advanced $21,000 to the partnership Both partners withdrew capital in anticipation of profits: i) James (1 March 2022) $8,700 ii) Emilia (30 April 2022) $14,000 Net Profit on 30 June 2022 amounted 176,000 Required: Prepare a schedule showing the distribution of profit to each partner (round to a) the nearest dollar). (6 marks)