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 $ 61,200 81,200 -0. 100,500 O'Neal $ 51,700 -0- 131, 100 The land was subject to a $51,100 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 $21,800 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 O'Neal Interest on beginning capital balance Salaries Remainder Jordan 38 $13,900 600 $13,900 400 During 20X7, the following events occurred: 1. Inventory was acquired at a cost of $31,200. At December 31, 20x7, the partnership owed $7,000 to its suppliers 2. Principal of $5,200 was paid on the mortgage. Interest expense incurred on the mortgage was $2,300, 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 $2,200, all of which was paid by December 31, 20x7. 4. Sales on account amounted to $164,000. At December 31, 20x7.customers owed the partnership $21,700 5. Selling and general expenses, excluding depreciation, amounted to $34,700, At December 31, 20x7, the partnership owed $7,100 of accrued expenses. Depreciation expense was $6,500. 6. Each partner withdrew $290 each week in anticipation of partnership profits 7. The partnership's inventory at December 31, 20X7, was $21100, 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 $115,360 of cash into the partnership for a 20 percent capital Interest. Total partnership capital after Hill was admitted totaled $465,000 Required: 3. 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 Mat Journal entry worksheet Saved Help View transaction list Journal entry worksheet Record the payment of the principal and interest on the installment note. Note: Enter debits before credits General Journal Debit Credit Event 03 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the sales on account. Note: Enter debits before credits cos Event General Joumul Debit Credit 04 Record entry Clear ontry View general Journal er 15 Saved Help Save CH View transaction list Journal entry worksheet Record the selling and administration expense. Note: Enter debits before credits General Journal Dabit Credit Event (a)05 Record entry Clear entry View general Journal Help Save & Ex Check View transaction list Journal entry worksheet B D E F G H Record the depreciation expense. Note: Enter debits before credits General Journal Debit Credit Event (b)05 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the drawings by the partners. Note: Enter debits before credits Event Goneral Journal Debit Credit 06 Record entry Clear entry View general Journal View transaction list Journal entry worksheet OK Record the transfer of sales to the income summary int Note: Enter debits before credits rences Debit General Journal Event Credit 07 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the cost of goods sold. Note: Enter debits before credits Event General Journal Debit Credit (a)08 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Close the expense accounts to income summary Note: Enter debits before credits Event General Journal Debit Credit (b)08 Record entry Clear entry View general Journal View transaction list Journal entry worksheet