The partnership of Jordan and O'Neal began business on January 1, 20x7 Each partner contributed the following assets (the noncash assets are stated at their fair values on January 1, 20x7) Cash Inventories Land Equipment Jordan $ 60,600 80,400 O'Neal $ 50,200 -0- 139,800 -- 101.000 The land was subject to a $51,400 mortgage, which the partnership assumed on January 1, 20x7. The equipment was subject to an installment note payable that had an unpaid principal amount of $21.200 on January 1, 20x7. The partnership also assumed this note payable Jordan and O'Neal agreed to share partnership income and losses in the following manner: Interest on beginning capital balances Jordan 3x $13,500 60N O'Neal 3% $13,500 ex Salaries Remainder During 20x7, the following events occurred: 1. Inventory was acquired at a cost of $31,100. At December 31, 20x7 the partnership owed $7.200 to its suppliers 2. Principal of $5,900 was paid on the mortgage. Interest expense incurred on the mortgage was $2,000, all of which was paid by December 31, 20x7. 3. Principal of $3,200 was paid on the installment note Interest expense incurred on the installment note was $2,300, all of which was paid by December 31, 20X2 4. Soles on account amounted to $164,500. At December 31, 20X7, customers owed the partnership $22,900, 5. Selling and general expenses, excluding depreciation, o mounted to $35.000. At December 31, 20x7, the partnership owed $7.100 of Recon D weet. LUNE 3. Principal of $3,200 was paid on the installment note. Interest expense incurred on the installment note was $2,300, all of which was paid by December 31, 20X7 4. Sales on account amounted to $164,500. At December 31, 20X7, customers owed the partnership $22,900. 5. Selling and general expenses excluding depreciation amounted to $35,000. At December 31, 20X7, the partnership owed 57,100 of accrued expenses. Depreciation expense was $6,300 6. Each partner withdrew $290 each week in anticipation of partnership profits. 7. The partnership's inventory at December 31, 20X7, was $20,300 8. The partners allocated the net income for 20X7 and closed the accounts Additional Information On January 1, 20x8, the partnership decided to admit Hill to the partnership. On that dote, Hill invested $17,060 of cash into the partnership for a 20 percent capital interest. Total partnership capital after Hill was admitted totaled $465,000 Required: a. Prepare Journal entries to record the formation of the partnership on January 1, 20X7, and to record the events that occurred during 20x7. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round the final answers to nearest dollar amount.) View transaction list View journal entry worksheet NO Transaction General Joumai Debit a Cash Inventory Land Equipment Mortgage payable View transaction list View journal entry worksheet Mo transaction General ouma a Cash Inventory Land Equipment Mortgage payable Installment note payable Jordan, Capital O'Neal Capital No General Douro 01 Inventory Cash Accounts payable B 02 Mortgage payable Interest expense Cash 03 Installment note payable Interest expense Cash D 04 Accounts receivable Cash Sales IN E (a)05 Selling and general expenses Cash Accrued expenses payable F (b)05 Depreciation expense Cash Accrued expenses payable F (b)05 Depreciation expense Accumulated depreciation G 06 Jordan, Drawing O'Neal, Drawing Cash IST H 07 Sales Income summary IN (ay08 Cost of goods sold Inventory IN (b)08 Income summary Cost of goods sold Selling and general expenses IN (C)08 Income summary Jordan Capital STY QUI VELICIDI GAWETICS K (c)08 Income summary Jordan, Capital O'Neal, Capital L (d)08 Jordan, Capital O'Neal, Capital Jordan, Drawing O'Neal Drawing b. Prepare the income statement for the Jordan O'Neal Partnership for the year ended December 31, 20X7. JORDAN O'NEAL PARTNERSHIP Income Statement For the Year Ended December 31, 20X7 Sales Less Cost of Goods Sold: Inventory, January 1 Purchases Goods Available for Sale 0 b. Prepare the income statement for the Jordan O'Neal Partnership for the year ended December 31, 20x7. JORDAN O'NEAL HARTNERSHIP Income Statement For the Year Ended December 31, 20X7 Sales Less Cost of Goods Sold Inventory, January 1 Purchases $ 0 Goods Available for Sale Less Inventory, December 31 Gross Profit Less: Selling and general expenses Less Depreciation experise $ 0 0 S 0 Operating income Nonoperating expense - Interest Net Income $ 0 c Prepare a balance sheet for the Jordon-O'Neal Partnership at December 31, 20x7. (Round the final answers to nearest doll amount.) JORDAN O'NEAL PARTNERSHIP Balance Sheet Al December 31, 20X7 Assets Cash Accounts receivable nventory Land Equipment (net) Total Assets $ 0 Liabilities and Capital Liabilities Accounts payable Accounts receivable Installment note payable Mortgage payable $ 0 Total liabilities Capital Jordan Capital O'Neal, Capital Total capital Total abilities and Capital 0 $ 0 d. Prepare the journal entry for the admission of Hill on January 1, 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit A 1 Cash Jordan, Capital O'Neal, Capital H Capital