Entries and Balance Sheet for Partnership Instructions On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,960 in cash and merchandise inventory valued at $56,060. Wallace invests certain business assets at valuations agreed upon, transfers business liabities, and contributes sufficient cash to bring her total capital to $59,510. Details regarding the book values of the business assets and labilities, and the age valuations, follow: Wallace's Ledger Agreed-Upon Balance Valuation Accounts Receivable $18,460 $17,560 Allowance for Doubtful Accounts 1,570 1,810 Equipment 83, 160 54,420 Accumulated Depreciation 29,820 Accounts Payable 15,330 15,330 Notes Payable (current) 36,100 36,100 The partnecsbic.aoreement includes the following provisions regarding the division of net income: Interest on original investments at 10%, salary allowances of $22,140 (Keene) and $30,840 (Wallace), an remainder equally. Required: 1. Joumalize the entries on March 1 to record the investments of Koene and Wallacein the partnership accounts." 2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons () will aufomatically appear if required. Enter all amounts as positive numbers. 3. Aftor adjustmonts at Fobruary 28, 20Y9, the end of the first ful year of operations, the rovenues wore $290,170 and exponses wore $200, 100, for a net income of $90,070. The drawing accounts have debit balances of $28,170 (Koene) and $30,200 (Wallace). Journalizethe entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for jourmal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered.

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
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. PR.12.01.BLANKSHEET.ALGO (Algorithmic)
Entries and Balance Sheet for Partnership
Instructions
On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,960 in cash and merchandise inventory valued at $56,060. Wallace invests certain business assets at
valuations agreed upon, transfers business liablities, and contributes sufficient cash to bring her total capital to $59,510. Details regarding the book values of the business assets and liabilities, and the agr
valuations, follow
Wallace's Ledger
Agreed-Upon
Balance
Valuation
Accounts Receivable
$18,460
$17,560
Allowance for Doubtful Accounts
1,570
1,810
Equipment
83,160
54,420
Accumulated Depreciation
Accounts Payable
15.330
Notes Payable (current)
36,100
36,100
The partnershio agrement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,140 (Keene) and $30,840 (Wallace), anı
remainder equally.
Required:
1. Joumalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts."
2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace. Be sure to complete the
statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer
choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons (:) will automatically appear if required. Enter all
amounts as positive numbers.
3. Aftor adjustmonts at February 28, 20Y9, the end of the first ful yoar of operations, the revonues wore $290, 170 and expenses wore $200, 100,
a net income of $90,070. The drawing accounts have debit balances of $28,170 (Koene) and $30,200 (Wallace). Journalizethe entries to
close the revenues and expenses and the drawing accounts at February 28, 20Y9.
"Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line
on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered.
Journal
1. Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW jounals d
use lines for joumal explanations. Every line on a joumal page is used for debit or credit entrios. CNOW journals will automadically indent a credit entry when a credit amount is enfered.
PAGE 5
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST, REF.
DENIT
CREDIT
ASSETS
LIABLITIES
EQUITY
2
4
10
3. After adjustments at February 28, 20Y9, the end of the first full year of operations, the revenues were $290, 170 and expenses were $200, 100, for a net income of $90,070. The drawing accounts haved
balances of $28, 170 (Keene) and $30,200 (Walace). Journalizethe entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9. Refer to the chart of accounts for the exac
wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry
a credit amount is entered. If required, round your answers to two decimal places.
PAGE 20
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. BEE
DENIT
CREDIT
ASSETS
LIANLITIES
COUITY
Closing Entries
Balance Sheet
2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Koene and Wallace. Be sure to complete the statement heading. Refor to the Chart of Accounts and the list of L
and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons (:) will automatically appear if required. Ente
amounts as positive numbers.
Keene and Wallace
Balance Sheet
(Label)
Assets
2 (Label)
5
* Label)
10
11
Liabilities
12 (Label)
15
16
Partners' Equity
17
18
19
20
Transcribed Image Text:. PR.12.01.BLANKSHEET.ALGO (Algorithmic) Entries and Balance Sheet for Partnership Instructions On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,960 in cash and merchandise inventory valued at $56,060. Wallace invests certain business assets at valuations agreed upon, transfers business liablities, and contributes sufficient cash to bring her total capital to $59,510. Details regarding the book values of the business assets and liabilities, and the agr valuations, follow Wallace's Ledger Agreed-Upon Balance Valuation Accounts Receivable $18,460 $17,560 Allowance for Doubtful Accounts 1,570 1,810 Equipment 83,160 54,420 Accumulated Depreciation Accounts Payable 15.330 Notes Payable (current) 36,100 36,100 The partnershio agrement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,140 (Keene) and $30,840 (Wallace), anı remainder equally. Required: 1. Joumalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts." 2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons (:) will automatically appear if required. Enter all amounts as positive numbers. 3. Aftor adjustmonts at February 28, 20Y9, the end of the first ful yoar of operations, the revonues wore $290, 170 and expenses wore $200, 100, a net income of $90,070. The drawing accounts have debit balances of $28,170 (Koene) and $30,200 (Wallace). Journalizethe entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9. "Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered. Journal 1. Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts. Refer to the chart of accounts for the exact wording of the account titles. CNOW jounals d use lines for joumal explanations. Every line on a joumal page is used for debit or credit entrios. CNOW journals will automadically indent a credit entry when a credit amount is enfered. PAGE 5 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST, REF. DENIT CREDIT ASSETS LIABLITIES EQUITY 2 4 10 3. After adjustments at February 28, 20Y9, the end of the first full year of operations, the revenues were $290, 170 and expenses were $200, 100, for a net income of $90,070. The drawing accounts haved balances of $28, 170 (Keene) and $30,200 (Walace). Journalizethe entries to close the revenues and expenses and the drawing accounts at February 28, 20Y9. Refer to the chart of accounts for the exac wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry a credit amount is entered. If required, round your answers to two decimal places. PAGE 20 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. BEE DENIT CREDIT ASSETS LIANLITIES COUITY Closing Entries Balance Sheet 2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Koene and Wallace. Be sure to complete the statement heading. Refor to the Chart of Accounts and the list of L and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons (:) will automatically appear if required. Ente amounts as positive numbers. Keene and Wallace Balance Sheet (Label) Assets 2 (Label) 5 * Label) 10 11 Liabilities 12 (Label) 15 16 Partners' Equity 17 18 19 20
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