Steve Reese Is a well-known Interior designer In Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnershlp. On January 1, 2016, ODonnell Invests a bullding worth $58,000 and equlpment valued at $28,000 as well as $24,000 In cash. Although Reese makes no tangible contribution to the partnershlp, he will operate the business and be an equal partner In the beginning capital balances. To entice ODonnell to join this partnershlp, Reese draws up the following profit and loss agreement . O'Donnell will be credited annually with Interest equal to 10 percent of the beginning capital balance for the year. .ODonnell will also have added to his capital account 15 percent of partnership Income each year (without regard for the preceding Interest figure) or $7,000, whichever Is larger. All remaining Income is credited to Reese. Nelther partner is allowed to withdraw funds from the partnershlp during 2016. Thereafter, each can draw $5,000 annually or 20 percent of the beginning capital balance for the year, whichever is larger. The partnership reported a net loss of $8,000 during the first year of Its operation. On January 1, 2017, Terri Dunn becomes a third partner In this business by contributing $10,000 cash to the partnership. Dunn recelves a 20 percent share of the business's capital. The profit and loss agreement is altered as follows: O'Donnell Is still entitled t(1) Interest on his beginning capital balance as well as (2) the share of partnership income just specified. Any remalning profit or loss will be splt on a 5:5 basis between Reese and Dunn, respectively. . . Partnershlp Income for 2017 is reported as $64,000. Each partner withdraws the full amount that is allowed. On January 1, 2018, Dunn becomes Ill and sells her Interest In the partnershlp (wIth the consent of the other two partners) to Judy allowance Postner. Postner pays $75,000 directly to Dunn. Net Income for 2018 Is $64,000 with the partners again taking their full drawing On January 1, 2019, Postner wthdraws from the business for personal reasons. The articles of partnership state that any partner may leave the partnershlp at any time and is entitled to recelve cash In an amount equal to the recorded capltal balance at that time plus 10 percent Journal entry worksheet 5 6 8 9 Record the distribution of net income to partners. Journal entry worksheet 2 4. 5 6 8 9 Record the admittance of Dunn into the partnership. Journal entry worksheet 2 3 4 6 7 8 9 Record the distribution of net income to partners. Journal entry worksheet 2 3 4. 5 7 8 9 Record the admittance of Postner into the partnership Journal entry worksheet 2 3 4. 5 7 8 9 Record the admittance of Postner into the partnership Journal entry worksheet 0 0 0 O OO 2 3 4 5 6 8 9 Record entry to close drawings accounts. Journal entry worksheet 2 3 4 5 6 7 9 Record the distribution of net income to partners. Journal entry worksheet 2 3 4 5 6 7 8 Record the cash paid to the withdrawing partner. Required A Required B Prepare journal entries to record the previous transactions on the assumption that the goodwill (or revaluation) method is used. Drawings need not be recorded, although the balances should be included in the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Show less