The partnership of Avery and Kirk was formed on July 1, when George Avery and Dinah Kirk agreed to invest equal amounts and to share profits and losses equally. The investment by Avery consist of $30,000 cash and an inventory of merchandise valued at $56,000. Kirk also is to contribute a total of $86,000. However, it is agreed that her contribution will consist of the transfer of both assets of her business and its liabilities (listed as follows). A list of the agreed values of the various items as well as their carrying values on Kirk’s records follows. Kirk also contributes enough cash to bring her capital account to $86,000                                                 Investment by Kirk                                       Balances                                     Agreed                                       on Kirk’s records                         Value Accounts receivables                $81,680                          $79,600 Inventory                                 11,400                              12,800 Office equipment(net)              14,300                           9,000 Accounts payables                   24,800                            24,800   I need Draft entries (in general journal form) to record the investment of Avery and Kirk in the new partnership. Prepare the beginning balance sheet of the partnership (in report form) at the close of business July 1, reflecting these transfers to the firm. On the following June 30 after one year of operation, the income summary account showed a credit balance of $ 74,000, and the Drawing account for each partner showed a debit balance of $30,00. Prepare the journal entries to close the income summary account and the drawing accounts at June 30

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The partnership of Avery and Kirk was formed on July 1, when George Avery and Dinah Kirk agreed to invest equal amounts and to share profits and losses equally. The investment by Avery consist of $30,000 cash and an inventory of merchandise valued at $56,000. Kirk also is to contribute a total of $86,000. However, it is agreed that her contribution will consist of the transfer of both assets of her business and its liabilities (listed as follows). A list of the agreed values of the various items as well as their carrying values on Kirk’s records follows. Kirk also contributes enough cash to bring her capital account to $86,000

                                                Investment by Kirk

                                      Balances                                     Agreed

                                      on Kirk’s records                         Value

Accounts receivables                $81,680                          $79,600

Inventory                                 11,400                              12,800

Office equipment(net)              14,300                           9,000

Accounts payables                   24,800                            24,800

 

I need

  1. Draft entries (in general journal form) to record the investment of Avery and Kirk in the new partnership.
  2. Prepare the beginning balance sheet of the partnership (in report form) at the close of business July 1, reflecting these transfers to the firm.
  3. On the following June 30 after one year of operation, the income summary account showed a credit balance of $ 74,000, and the Drawing account for each partner showed a debit balance of $30,00. Prepare the journal entries to close the income summary account and the drawing accounts at June 30

 

 

 

 

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