The partnership of Jordan and ONeal 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) Jordan ONeal Cash $ 60,700 $ 51,100 Inventories 80,900 0 Land 0 130,900 Equipment 101,600 0 The land was subject to a $50,900 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 $20,700 on January 1, 20X7 The partnership also assumed this note payable Jordan and ONeal agreed to share partnership income and losses in the following manner Jordan ONeal Interest on beginning capital balances 3 3 Salaries $ 13,800 $ 13,800 Remainder 60 40 During 20X7, the following events occurred Inventory was acquired at a cost of $30,800 At December 31, 20X7, the partnership owed $7,400 to its suppliers Principal of $6,400 was paid on the mortgage Interest expense incurred on the mortgage was $2,300, all of which was paid by December 31, 20X7 Principal of $3,800 was paid on the installment note Interest expense incurred on the installment note was $2,100, all of which was paid by December 31, 20X7 Sales on account amounted to $155,500 At December 31, 20X7, customers owed the partnership $22,000 Selling and general expenses, excluding depreciation, amounted to $35,000 At December 31, 20X7, the partnership owed $6,800 of accrued expenses Depreciation expense was $6,100 Each partner withdrew $250 each week in anticipation of partnership profits The partnerships inventory at December 31, 20X7, was $21,500 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 $104,600 of cash into the partnership for a 20 percent capital interest Total partnership capital after Hill was admitted totaled $452,000 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 ) b Prepare the income statement for the Jordan ONeal Partnership for the year ended December 31, 20X7 c Prepare a balance sheet for the Jordon ONeal Partnership at December 31, 20X7 (Round the final answers to nearest dollar amount ) 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 )

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The partnership of Jordan and ONeal began business on January 1, 20X7. Each partner contributed the following assets (the noncash assets are stated at their

The partnership of Jordan and ONeal 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):

	Jordan		ONeal
Cash	$	60,700	$	51,100
Inventories		80,900		0
Land		0		130,900
Equipment		101,600		0

The land was subject to a $50,900 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 $20,700 on January 1, 20X7. The partnership also assumed this note payable. Jordan and ONeal agreed to share partnership income and losses in the following manner:

	Jordan			ONeal
Interest on beginning capital balances		3	%		3	%
Salaries	$	13,800		$	13,800
Remainder		60	%		40	%

During 20X7, the following events occurred:

Inventory was acquired at a cost of $30,800. At December 31, 20X7, the partnership owed $7,400 to its suppliers.
Principal of $6,400 was paid on the mortgage. Interest expense incurred on the mortgage was $2,300, all of which was paid by December 31, 20X7.
Principal of $3,800 was paid on the installment note. Interest expense incurred on the installment note was $2,100, all of which was paid by December 31, 20X7.
Sales on account amounted to $155,500. At December 31, 20X7, customers owed the partnership $22,000.
Selling and general expenses, excluding depreciation, amounted to $35,000. At December 31, 20X7, the partnership owed $6,800 of accrued expenses. Depreciation expense was $6,100.
Each partner withdrew $250 each week in anticipation of partnership profits.
The partnerships inventory at December 31, 20X7, was $21,500.
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 $104,600 of cash into the partnership for a 20 percent capital interest. Total partnership capital after Hill was admitted totaled $452,000. 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.)

b. Prepare the income statement for the Jordan-ONeal Partnership for the year ended December 31, 20X7.

c. Prepare a balance sheet for the Jordon-ONeal Partnership at December 31, 20X7. (Round the final answers to nearest dollar amount.)

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.)