On February 1, 2020, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $82,000 cash and Xie contributed land valued at $122,000 and a small building valued at $182,000. Also, the partnership assumed responsibility for Xie’s $132,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $92,000, 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, 2020, Williams withdrew cash of $62,000 and Xie withdrew $47,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $162,000.
Required:
1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the Income Summary and withdrawals accounts.