Question
Tom and Julie formed a management consulting partnership on January 1, 2016. The fair value of the net assets invested by each partner follows: Tom
Tom and Julie formed a management consulting partnership on January 1, 2016. The fair value of the net assets invested by each partner follows:
Tom
JulieCash
$12,500
$11,300Accounts receivable
8,400
6,000Office supplies
1,900
900Office equipment
27,300
Land
28,300Accounts payable
2,200
5,500Mortgage payable
19,600
During the year, Tom withdrew $13,900 and Julie withdrew $10,900 in anticipation of operating profits. Net profit for 2016 was $51,300, which is to be allocated based on the original net capital investment.
statement of changes in partners' capital for the year ended December 31, 2016. (Round answers to 0 decimal places, e.g. 5,125. List items that increase partners' capital first.)
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