Partnership entries and statement of partnership equity The capital accounts of Hassan Khan and Dmitri Palovich have balances of $75,000 and $54,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On July 10, Khan invested an additional $8,000. During the year, Khan and Palovich withdrew $40,000 and $32,000, respectively, and net income for the year was $102,000. Revenues wer $523,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income. a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank. 88 Journalize the entry to close the drawing accounts. If an amount box does not require an entry, leave it blank. b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich. If an amount is zero or a blank, enter in 0. Khan and Palovich Statement of Partnership Equity For the Year Ended December 31, 20Y4 Line Item Description Balances, January 1, 2014 Investment by partner Net income for the year Partner withdrawals Balances, December 31, 20Y4 Hassan Dmitri Khan Palovich Total
Partnership entries and statement of partnership equity The capital accounts of Hassan Khan and Dmitri Palovich have balances of $75,000 and $54,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On July 10, Khan invested an additional $8,000. During the year, Khan and Palovich withdrew $40,000 and $32,000, respectively, and net income for the year was $102,000. Revenues wer $523,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income. a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank. 88 Journalize the entry to close the drawing accounts. If an amount box does not require an entry, leave it blank. b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich. If an amount is zero or a blank, enter in 0. Khan and Palovich Statement of Partnership Equity For the Year Ended December 31, 20Y4 Line Item Description Balances, January 1, 2014 Investment by partner Net income for the year Partner withdrawals Balances, December 31, 20Y4 Hassan Dmitri Khan Palovich Total
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
Section: Chapter Questions
Problem 3PB
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Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Transcribed Image Text:Partnership entries and statement of partnership equity
The capital accounts of Hassan Khan and Dmitri Palovich have balances of $75,000 and $54,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On July 10,
Khan invested an additional $8,000. During the year, Khan and Palovich withdrew $40,000 and $32,000, respectively, and net income for the year was $102,000. Revenues were
$523,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income.
a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank.
BE
Journalize the entry to close the drawing accounts. If an amount box does not require an entry, leave it blank.
EE
b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich. If an amount is zero or a blank, enter in 0.
Khan and Palovich
Statement of Partnership Equity
For the Year Ended December 31, 20Y4
Line Item Description
Balances, January 1, 2014
Investment by partner
Net income for the year
Partner withdrawals
Balances, December 31, 2014
$
Hassan Dmitri
Khan
Palovich
$
Total
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