Anna Hemsley, Lakisha Laffey and Mallory Longshore, set up a limited liability company at the beginning of 2020. Anna contributed a machine worth $48,250. Lakisha contributed a van worth $28,950. Mallory contributed $19,300 in cash. The partnership earned a net income of $16,200 for the year. According to the operating agreement, profits are divided in the ratio of members' initial contributions. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Enter the debit accounts in alphabetical order, followed by the credit accounts in alphabetical order. a) Record the entry for the division of the profits on December 31, 2020. Assume that revenues and expenses have already been closed to the income summary account. Date Account Title and Explanation Debit Credit Dec 31 To close income summary and update partners' capital accounts b) Assume that instead of a profit, the partnership recorded a loss of $8,000. Record the entry for the division of the loss. Assume that revenues and expenses have already been closed to the income summary account. Date Account Title and Explanation Debit Credit Dec 31 To close income summary and update partners' capital accounts

Anna Hemsley, Lakisha Laffey and Mallory Longshore, set up a limited liability company at the beginning of 2020. Anna contributed a machine worth $48,250. Lakisha contributed a van worth $28,950. Mallory contributed $19,300 in cash. The partnership earned a net income of $16,200 for the year. According to the operating agreement, profits are divided in the ratio of members' initial contributions. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Enter the debit accounts in alphabetical order, followed by the credit accounts in alphabetical order. a) Record the entry for the division of the profits on December 31, 2020. Assume that revenues and expenses have already been closed to the income summary account. Date Account Title and Explanation Debit Credit Dec 31 To close income summary and update partners' capital accounts b) Assume that instead of a profit, the partnership recorded a loss of $8,000. Record the entry for the division of the loss. Assume that revenues and expenses have already been closed to the income summary account. Date Account Title and Explanation Debit Credit Dec 31 To close income summary and update partners' capital accounts

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 38P

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