Anthony and Erin start a partnership with capital contributions of $64,300 and $94,800, respectively. Over the course of the year, Anthony withdraws $2,300 from the business in order to meet his pers Which of the following is the correct journal entry to close Anthony's withdrawals account at the end of the year? O Anthony, Withdrawals 2,300 Anthony, Capital O Anthony. Withdrawals Cash O Anthony, Capital Anthony, Withdrawals Cash 2.300 2,300 2.300 2,300 2,300 2,300
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- On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $48,000, $75,000, and $78,000, respectively. Over the next three years, the business reported net income and (loss) as follows: 2020 $ 88,000 2021 60,000 2022 (43,000 ) During this period, each partner withdrew cash of $20,000 per year. Krause invested an additional $5,000 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 $14,500 per year, and Diaz is entitled to an annual salary allowance of $10,800 per year. Any remaining profit will be split as follows: Angela, 20…On October 31, Sally retires from the partnership of Sally, Blake, and Taylor. The partner capital balances are Sally, $36,000; Blake $47,000; and Taylor, $26,000. The profit-and-loss-sharing ratio has been 5:3:2 for Sally, Blake, and Taylor, respectively. Requirements 1. Journalize the withdrawal of Sally assuming she receives $75,000 cash. 2. Journalize the withdrawal of Sally assuming she receives $32,000 cash.Kenny and Jeff form a partnership. During the year, Kenny and Jeff withdraw $29,000 and $24,000, respectively. Which of the following will be included in the journal entry to record the withdrawals? OA. debit to Kenny, Withdrawals for $29,000 OB. credit to Kenny, Withdrawals for $29,000 OC. credit to Jeff, Withdrawals for $24,000 OD. debit to Jeff, Withdrawals for $5,000 ***
- On July 1, 2019, Lola wants to retire from JKL Partnership. The Statement of Financial Position of JKL Partnership before closing on that date shows the following: Cash 148,000 Receivables, net 72,000 Equipment, net 270,000 Prepaid expenses 60,000 Total assets 550,000 Liabilities 90,000 Jose, Capital 200,000 Kiko, Capital 96,000 Lola, Capital 84,000 Income summary 80,000 Total liabilities and equity 550,000 Jose, Kiko and Lola share profits and losses in the ratio 5:3:2, respectively. The partners agreed to write-off the prepaid expenses and to adjust the equipment to its fair value of 230,000. Lola is paid 110,000 cash for his total interest. What is the balance of each remaining partner’s account after Lola’s retirement?On October 31, Sally retires from the partnership of Sally, Blake, and Taylor. The partner capital balances are Sally, $36,000; Blake $47,000; and Taylor, $26,000. The profit-and-loss-sharing ratio has been 5:3:2 for Sally, Blake, and Taylor, respectively. Requirements 1. Journalize the withdrawal of Sally assuming she receives $75,000 cash. 2. Journalize the withdrawal of Sally assuming she receives $32,000 cash. ..... Requirement 1. Journalize the withdrawal of Sally assuming she receives $75,000 cash. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Oct. 31Regina Harrison is a partner in Pressed for Time. An analysis of Regina Harrison's capital account indicates that during the most recent year, she withdrew $20,000 from the partnership. Her share of the partnership's net loss was $16,000 and she made an additional equity contribution of $10,000. Her capital account ended the year at $150,000. What was her capital balance at the beginning of the year? a. $124,000 O b. $176,000 ○ c. $192,000 Od. $144,000
- On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $34,000, $65,000, and $67,000, respectively. Over the next three years, the business reported net income and (loss) as follows: 2020 $ 77,000 2021 49,000 2022 (32,000 ) During this period, each partner withdrew cash of $18,000 per year. Krause invested an additional $4,000 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 $15,500 per year, and Diaz is entitled to an annual salary allowance of $9,700 per year. Any remaining profit will be split as follows: Angela, 20 percent; Diaz, 45 percent; and Krause, 35…Sameer, Hani, and Ali are partners in SHA Partnership. On 1/1/ 2021, they decide to liquidate their business. On 31/12/2020, and before closing the net income for 2020, you have the following accounts and balances:Cash $ 52,000Non cash Assets 215,000Liabilities 5,000Sameer’s capital 134,000Hani’s capital 78,000Ali’s capital 10,000You know that:Net income for the year 2020 was $ 40,000.Non cash assets are sold for $160,000 cashPartners share income/ loss in a 4:3:3 ratio, respectively.Required: Calculate the amount of Cash distribution to Sameer, after the liquidation process is over.Alex, Baker and Carlton have operated a small hardware store for a number of years as a partnership. At the beginning of 2021, the capital balances were as follows: $82,000 $62,000 Alex Baker Carlton $30,000 Due to a cash shortage, Alex invests an additional $6,000 in the business on April 1, 2021. Each partner withdraws just $700 cash each month. The partners have used the same method of allocating profits and losses since they started the business. -Each partner is given the following compensation for their work at the store: Alex $14,000 $24,000 $4,000 Baker Carlton -Each partner is credited with interest equal to 20% of the average monthly capital balance for the year without regard for normal drawings. -Any remaining profit or loss is allocated 3:2:5 to Alex, Baker and Carlton, respectively. The net income for 2021 is $24,000 Each partner withdraws the allotted amount each month. Prepare a schedule showing the distribution of 2021 net income to the partners following the method of…
- Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2021, capital balances were as follows: Purkerson Smith Traynor ● Due to a cash shortage, Purkerson invests an additional $14,000 in the business on April 1, 2021. Each partner is allowed to withdraw $1,000 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: $ 88,000 68,000 20,000 Each partner is given the following compensation allowance for work done in the business: Purkerson, $11,000; Smith, $27,000; and Traynor, $4,000. Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. Any remaining profit or loss is allocated 4:3:3 to Purkerson, Smith, and Traynor, respectively. The net income for 2021 is $30,000. Each partner withdraws the allotted amount each month. Prepare a schedule showing calculations for the…On January 1, 2024, John Jarell, Andrew Martin, and Susan Montgomery formed a partnership by investing $100,000, $100,000, and $120,000 respectively. During the remainder of the year, John Jarell withdrew cash of $45,000, Andrew Martin withdrew $15,000 and Susan Montgomery withdrew $39,000. In addition, the following schedule shows how net income is allocated. Net income: Salaries: Interest: John Jarell Andrew Martin Susan Montgomery Total 100,000 21,000 5,000 26,000 Total salary and interest: Remainder to be allocated: Remainder allocated between partners: 8,000 Balance of net income to be allocated: Total to be allocated to each partner: Date 34,000 18,000 5,000 23,000 8,000 31,000 Page GJ2 F Debit Credit 21,000 6,000 27,000 b) Calculate the post-closing balance in each partners' capital account. John Jarell, Capital Andrew Martin, Capital Susan Montgomery, Capital. 8,000 35,000 a) Prepare the entry to close the income summary account. Enter an appropriate description and the date in…Wally and Jose were in business for several years, sharing profits and losses equally. Because of Jose's poor health, they decided to liquidate the partnership. Wally managed the liquidation because Jose was in the hospital. Just before liquidation, the partnership balance sheet contained the following information: Cash Other Assets Total Assets P 800,000 P 2,200,000 P 3,000,000 Liabilities Wally, Capital Jose, Capital Total Liabilities & Equity P 500,000 P 1,000,000 P 1,500,000 P 3,000,000 Wally (1) sold the other assets for P 1,750,000, (2) paid off all the creditors, and (3) divided the remaining cash between them, according to their profit and loss sharing ratio. Jose received a note from Wally that read "Good news - sold other assets for P 1,750,000. Have P 1,025,000 check waiting for you. Get well soon." Because he will not be released from the hospital for several days, Jose asks you to review Wally's liquidation and cash distribution procedures. Do you approve Wally's…