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 $ 61,600 80,400 -0- 101,800 O'Neal $ 51,800 -- 130,800 -- The land was subject to a $50,200 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 $20,400 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 Salaries Remainder Jordan 3% $12,300 60% O'Neal 3% $12,300 ex During 20x7, the following events occurred: 1. Inventory was acquired at a cost of $31.100. At December 31, 20X7, the partnership owed $7.900 to its suppliers. 2. Principal of $5,800 was paid on the mortgage. Interest expense incurred on the mortgage was $2100, all of which was paid by December 31, 20X7 3. Principal of $3.700 was paid on the installment note Interest expense incurred on the installment note was $1,800, all of which was paid by December 31, 20x7 4. Sales on account amounted to $158.000 At December 31, 20x7, customers owed the partnership $22.400 5 Selling and general expenses, excluding depreciation, amounted to $34,400. At December 31, 20x7 the partnership owed $6,300 of accrued expenses. Depreciation expense was $6,300 6. Each partner withdrew $280 each week in anticipation of partnership profits. 7. The partnership's inventory at December 31, 20X7, was $21,000 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 date, Hill invested $108,420 of cash into the partnership for a 20 percent capital interest Total partnership capital after Hill was admitted totaled $458,000 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.) 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 Journal entry worksheet Record the investment by the partners in the business Note Enter debit before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal View transaction list Journal entry worksheet