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these entries will be recorded
1) record the entry for formation of
2) record the withdrawl by partner november 20
3) record the closing of profit to capital may 31
4) record the admissin of william for 20% interest june 01
these are not subparts i have mentioned these only for ur help
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- On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $298,000 cash and $396,000 of equipment, respectively. The partnership also assumed responsibility for a $58,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $168,000, both are to receive an annual interest allowance of 5% of their original capital investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $118,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $560,000. On June 1, 2021, Peter Williams invested $138,000 and was admitted to the partnership for a 20% interest in equity. Required: 1. Prepare journal entries for the following dates. a. June 1, 2020 b. November 20, 2020 c. May 31, 2021 d. June 1, 2021 2. Calculate the balance in each…On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $288,000 cash and $376,000 of equipment, respectively. The partnership also assumed responsibility for a $48,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $158,000, both are to receive an annual interest allowance of 10% of their original capital Investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $108,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $460,000. On June 1, 2021, Peter Williams Invested $128,000 and was admitted to the partnership for a 20% Interest in equity. Required: 1. Prepare Journal entries for the following dates. A. June 1, 2020 B. November 20, 2020 Record the withdrawal by partner. C. June 1, 2021 Record the admission of…On February 1, 2020, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $89,000 cash and Xie contributed land valued at $129,000 and a small building valued at $189,000. Also, the partnership assumed responsibility for Xie’s $139,000 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 $99,000, 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 $69,000 and Xie withdrew $54,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $169,000.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…
- On March 1, Eckert and Kelley formed a partnership. Eckert contributed $75,000 cash, and Kelley contributed land valued at $60,000 and a building valued at $90,000. The partnership also took Kelley's $65,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $30,500, both get an annual interest allowance of 10% of their initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $28,000 cash and Kelley withdrew $21.000 cash. First year income was $82,000. Required: 1a. & 1b. Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. 1c. Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners' withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of December 31. Complete this question by…A Lululime fashion business partnership has agreed that half of the annual profit be distributed in proportion to each partner's investment in the partnership, and that the other half be distributed in proportion to the total number of hours that each partner worked in the business during the year. In 2020 the profit of the company was $82,780. How the company should allocated this profit to its three investors if the amounts invested by Howe, Denver, and Laura are $68,000, $27,000, and $43,000, and their hours of work for the year were 420, 1170, and 1230, respectively?On March 1, Eckert and Kelley formed a partnership. Eckert contributed $82,500 cash, and Kelley contributed land valued at $60,000 and a building valued at $100,000. The partnership also took Kelley’s $92,500 longterm note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $25,000, both get an annual interest allowance of 10% of their initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $34,000 cash and Kelley withdrew $20,000 cash. After adjusting and closing entries are made to the revenue and expense accounts at December 31, the Income Summary account had a credit balance of $90,000. 1. Prepare journal entries to record (a) the partners’ initial capital investments, (b) their cash withdrawals, and (c) the December 31 closing of both the withdrawals and Income Summary accounts. 2. Determine the balances of the partners’ capital accounts as of…
- Jean, Conny, and Sasha decided to put up a meat and potato business so they formed a partnership on January 1, 2021, each partner investing P250,000 and agree to distribute profits equally. On February 10, 2021, Jeanwanted to give Mikasa a present, thus, he was advanced P100,000 by the firm. On September 1, 2021, Conny made a loan to the firm of P200,000. Interest is to be charged on advances to partners and credited on loansby partners at the rate of 12%. Business became unsatisfactory because Sasha kept on eating all the meat and potatoes that the partnership offers, thus, the partners decided to dissolve the business. Sasha is allowed special compensation of P25,000 for managing the sale of assets and settlement with creditors. On December 31, all assets have been sold, outside creditors have been paid, and cash of P350,000 is distributed topartners. All partners are personally solvent and final settlement is made among partners on February 10, 2022. How much Conny would receive…On March 1, Eckert and Kelley formed a partnership. Eckert contributed $92.000 cash, and Kelley contributed land valued at $73,600 and a bulding valued at $103.600. The partnership also took Kelley's $82000 long-term note payable associated with the land and bullding. The partners agreed to share Income as follows: Eckert gets an annual salary allowance of $30,000, both get an annual Interest allowance of 9% of their Initial capital Investment, and any remalning Income or loss Is shared equally. On October 20, Eckert withdrew $30,000 cash and Kelley withdrew $23,000 cash. After adjusting and closing entrles are made to the revenue and expense accounts at December 31, the Income Summary account had a credit balance of $76.000. Required: 1a. & 1b. Prepare journal entries to record the partners' initial capital Investments and their subsequent cash withdrawals. 1c. Determine the partners' shares of Income, and then prepare journal entries to close Income Summary and the partners'…Romero and Mason established a partnership on January 1, 2019. Romero invested cash of $150,000 and Mason invested $75,000 in cash and equipment with a book value of $45,000 and fair value of $50,000. For both partners, the beginning capital balance was to equal the initial investment. Romero and Mason agreed to the following procedure for sharing profits and losses: - 11% interest on the yearly beginning capital balance - $15 per hour of work that can be billed to the partnership's clients - the remainder divided in a 3:2 ratio The Articles of Partnership specified that each partner should withdraw no more than $1,000 per month, which is accounted as direct reduction of that partner’s capital balance. For 2019, the partnership's income was $125,000. Romero had 1,000 billable hours, and Mason worked 1,500 billable hours. Each partner withdrew $1,000 per month throughout 2019. Required: Determine the amount of net income allocated to each partner for 2019.
- Sophia and Anna are partners operating a chain of retail stores. The partnership agreement provides for the following: · Annual salaries to Sophia of P40,000 and P30,000 to Anna. · 12% interest on average capital balances. · Bonus to Sophia of 20% of net income before salaries and bonus but after interest on capital. · Residual income in the ratio 25% to Sophia and 75% to Anna. The Income Summary account for year 2018 shows a credit balance of P244,000 before any allocations. Average capital balances for Sophia and Anna are P100,000 and P150,000, respectively. How much must be the share of Sophia on the partnership net income?On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $44,000, $75,000, and $74,000, respectively. Over the next three years, the business reported net income and (loss) as follows: 2020 $ 84,000 2021 56,000 2022 (39,000 ) During this period, each partner withdrew cash of $16,000 per year. Krause invested an additional $6,000 in cash on February 9, 2021. At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows: Each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year. Because of prior work experience, Angela is entitled to an annual salary allowance of $12,500 per year, and Diaz is entitled to an annual salary allowance of $10,400 per year. Any remaining profit will be split as follows: Angela, 20…Liam and Katano formed a partnership to open a sushi restaurant by investing $106,000 and $116,000, respectively. They agreed to share profit based on an allocation to Liam of an annual salary allowance of $161,000, interest allowance to both Liam and Katano equal to 12% of their beginning-of-year capital balance, and any balance based on a 1:3 ratio, respectively. At the end of their first year, December 31, 2023, the Income Summary had a credit balance of $41,000. Liam withdrew $18,000 during the year and Katano $35,000. Required: 1. Determine each partner's share if the first-year profit was $41,000. Prepare the entry to close the Income Summary on December 31, 2023. (Leave no cell blank. Enter "0" when the answer is zero. Negative answers should be indicated by a minus sign.) Total salaries and interest allocation Balance of profit Remainder 1:3 ratio: Balance of profit Shares of each partner Share to Liam Share to Katano Total
