Reference no: EM132785741

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.

problem 1: 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.)