On April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Comeau Lavoi Contribution $304,000 cash $202,000 land $144,900 building Profit sharing $184,800 salary allowance 5% of original capital investments 5% of original capital investments 40% of remaining 60% of remaining Cash withdrawal March 20, 2023 $129,800 Net Income during the year was $509,600 and was in the Income Summary account.On April 1, 2023 Travis Roberts invested $139,400 and was admitted to the partnership for a 20% interest in equity.Required:1. Prepare journal entries for the following dates.a. April 1, 2022
On April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Comeau Lavoi Contribution $304,000 cash $202,000 land $144,900 building Profit sharing $184,800 salary allowance 5% of original capital investments 5% of original capital investments 40% of remaining 60% of remaining Cash withdrawal March 20, 2023 $129,800 Net Income during the year was $509,600 and was in the Income Summary account.On April 1, 2023 Travis Roberts invested $139,400 and was admitted to the partnership for a 20% interest in equity.Required:1. Prepare journal entries for the following dates.a. April 1, 2022
Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation
Section: Chapter Questions
Problem 43P
Related questions
Question
On April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario.
| Comeau | Lavoi | |||
| Contribution | $304,000 cash | $202,000 land | ||
| $144,900 building | ||||
| Profit sharing | $184,800 salary allowance | |||
| 5% of original capital investments | 5% of original capital investments | |||
| 40% of remaining | 60% of remaining | |||
| Cash withdrawal March 20, 2023 | $129,800 | |||
Net Income during the year was $509,600 and was in the Income Summary account.
On April 1, 2023 Travis Roberts invested $139,400 and was admitted to the partnership for a 20% interest in equity.
Required:
1. Prepare
a. April 1, 2022
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