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Take me to the text On March 1, 2016, Amy, Bob, and Mike decided to form a partnership to start a small public accounting firm.

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Take me to the text On March 1, 2016, Amy, Bob, and Mike decided to form a partnership to start a small public accounting firm. Amy, Bob, and Mike have invested $72,000 $58,000 and $67,000 respectively. Mike has also invested a piece of equipment that is worth $3,000. During the first year of operations in 2016, the firm earned a net income of $259,000. All earnings are to be divided according to the initial capital contribution of each partner. In addition, Amy and Bob withdrew $6,700 and $8,800 cash from the business. During the second year of operations on January 1, 2017, a new partner (Helen) was added to the firm. Helen purchased 80% of Amy's investment and 7% of Mike's investment (equity) in the business a) Assume year-end is on December 31, prepare the journal entries to set up the partnership, record the drawings, and distribute the income for 2016, Also, prepare any additional closing or adjusting entries. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole dollar For transactions with more than one debitor credit, enter the accounts in alphabetical order Date Account Title and explanation Debit Credit Jan 1 Cash Equipment Capital - Amy Capital - Bob Capital - Mike To record set up of partnership Dec 31 Drawings - Amy Capital - Mike To record set up of partnership Dec 31 Drawings - Amy Drawings - Bob Cash To record owner drawing accounts during the year Dec 31 Income Summary Capital - Amy Capital - Bob Capital - Mike To close income summary account Dec 31 Capital - Amy Capital - Bob Drawings - Amy + Drawings - Bob To close drawing accounts search b) Prepare the journal entry to record the admission of Helen Date Account Title and Explanation Debit Credit Jan 1 Capital - Amy Capital - Mike Capital - Helen To record admission of new partner c) Calculate the ending capital balance of each partner after the addition of Helen on January 1, 2017 Use the negative sign for capital transfers that are subtracted. Amy Bob Mike Helen Beginning Capital Balance Share of net income Subtotal Drawings De Capital transfer Ending Capital Balance

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