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): O'Neal Jordan S 51,800 Inventories 80 60 Land -0- 130,400 Equipment 101,300 0- subiect that had an unpaid principal amount of $21,000 on January 1, 20%7. The partnership also assumed this note pavable. Jordan and O'Neal agreed to share partnership income and lasses in the following manner Jardan $13,500 $13,500 O'Neal Interest on beginning capital balances Salaries Remainder 60% 40% During 20X7, the following events 00 At December 31, 20X7, the partnership owed $7,000 to its suppliers. 2. Principal of $6,500 was paid on the mortgage. Interest expense incurred on the mortgage was $2,200, 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 4. Sales on account amounted to $156,500. At December 31, 20X7, customers owed the partnership $21,300 5. Selling and general expenses, excluding depreciation, amounted to $34,800. At December 31, 20X7, the partnership owed $6,700 of accrued expenses. Depreciation expense was $6,700. llof which was paid by December 31, 20X7 December 31, 20X7. hip profits. 7. The partnership's inventory at December 31, 20X7, was $21,100 8. The partners allocated the net income for 20X7 and closed the accounts. Additional Information the partnership. On that date, Hill invested $123,200 of cash into the partnership for a 20 percent capital interest. Total partnership capital after Hill was iignitted totaled $469 oartnership decided to admit Hil Required: journal entries to record the formation of the partnership on January 1, 20X7, entry reauired"" in the first account field. Bound the final answers to nearest dollar amount) record the events that occurred during 20X7. (If no entry is required for a transactionlevent, select "No journal Journal entry worksheet 1 Record the investment by the partners in the business. Note: Enter debits before credits Transaction General Journal Debit Credit a. View general journal Record entry Clear entry View transaction list Journal entry worksheet A B D E F H Record the inventory purchase for cash and on account. Note: Enter debits before credits Debit Event General Journal Credit 01 View general journal Record entry Clear entry 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 Less: Cost of Goods Sold: Goods Available for Sale S 0 Gross Profit 0 0 C Net Income c. Prepare a balance sheet for the Jordon-O'Neal Partnership at December 31, 20X7. (Round the final answers to nearest dollar amount.) O'NEAL PARTNERSHIP JORDAN Balance Sheet At December 31, 20X7 Assets $ Total Assets Liabilities and Capital Liabilities Total liabilities Capital: Total capital C Total Liabilities and Capital S 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 Journal entry worksheet A Record the entry for the admission of Hill on January 1, 20X8. Note: Enter debits before credits. Event General Journal Debit Credit Record entry View general journal Clear entry