On February 1, 2023, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams
contributed $98 , 000 cash and X i e contributed land valued at $138 , 000 and a small building
valued at $198 , 000 . Also, the partnership assumed responsibility for Xie's $148 , 000 long-
term note payable associated with the land and building. The partners agreed to share prafit or
loss as follows: Williams is to receive an annual salary allowance of $108 , 000 , both are to
receive an annual interest allowance of 12% of their original capital investments, and any
remaining profit or loss is to be shared equally. On November 20,2023 , Williams withdrew cash
of $78 , 000 and Xie withdrew $63 , 000 . After the adjusting entries and the closing entries to
the revenue and expense accounts, the Income Summary account had a credit balance of $178 ,
000 . 1. Present general journal entries to record the initial capital investments of the partners,
their cash withdrawals, and the December 31 Required: closing of the Income Summary and
withdrawals accounts. Journal entry worksheet 2. Determine the balances of the partners' canital
arrounts as of the end of 2023 ..
On February 1- 2023- Tessa Williams and Audrey Xie formed a partnershi.pdf
1. On February 1, 2023, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams
contributed $98 , 000 cash and X i e contributed land valued at $138 , 000 and a small building
valued at $198 , 000 . Also, the partnership assumed responsibility for Xie's $148 , 000 long-
term note payable associated with the land and building. The partners agreed to share prafit or
loss as follows: Williams is to receive an annual salary allowance of $108 , 000 , both are to
receive an annual interest allowance of 12% of their original capital investments, and any
remaining profit or loss is to be shared equally. On November 20,2023 , Williams withdrew cash
of $78 , 000 and Xie withdrew $63 , 000 . After the adjusting entries and the closing entries to
the revenue and expense accounts, the Income Summary account had a credit balance of $178 ,
000 . 1. Present general journal entries to record the initial capital investments of the partners,
their cash withdrawals, and the December 31 Required: closing of the Income Summary and
withdrawals accounts. Journal entry worksheet 2. Determine the balances of the partners' canital
arrounts as of the end of 2023 .
