Make the statement of changes in partners capital

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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 Julie

Cash $12,500 $11,300

Accounts receivable 8,400 6,000

Office supplies 1,900 900

Office equipment 27,300 -

Land - 28,300

Accounts payable 2,200 5,500

Mortgage 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.

Required - Make the statement of changes in partners' capital for the year ended December 31, 2016.

Reference no: EM132796921

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