A & B formed a partnership on January 1. Partners A and B withdraw cash of $800 and $1,500, respectively. Drawings in excess of $1,000 are viewed as excessive withdrawals. The debit journal entries include: a. Drawing Partner A $800, Drawing Partner B $500, Capital Partner B $1,000. b. Capital Partner A $800, Capital Partner B $1,500. c. Drawing Partner A $800, Capital Partner B $1,500. d. Drawing Partner A $800, Drawing Partner B $1,000, Capital Partner B $500.
A & B formed a partnership on January 1. Partners A and B withdraw cash of $800 and $1,500, respectively. Drawings in excess of $1,000 are viewed as excessive withdrawals. The debit journal entries include: a. Drawing Partner A $800, Drawing Partner B $500, Capital Partner B $1,000. b. Capital Partner A $800, Capital Partner B $1,500. c. Drawing Partner A $800, Capital Partner B $1,500. d. Drawing Partner A $800, Drawing Partner B $1,000, Capital Partner B $500.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 14P
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Question
A & B formed a
a. Drawing Partner A $800, Drawing Partner B $500, Capital Partner B $1,000.
b. Capital Partner A $800, Capital Partner B $1,500.
c. Drawing Partner A $800, Capital Partner B $1,500.
d. Drawing Partner A $800, Drawing Partner B $1,000, Capital Partner B $500.
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