BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Partnership entries and statement of partnership equity

The capital accounts of Angel Alvarez and Emma Allison have balances of $47,000 and $73,000, respectively, on January 1, 20Y'4, the beginning of the fiscal year. On March 10, Alvarez invested an additional $8,000. During the year, Alvarez and Allison withdrew $32,000 and $39,000, respectively, and net income for the year was $62,000. Revenues were $483,000, and expenses were $421,000.The articles of partnership make no reference to the division of net income.

  1. a. Journalize the entries to dose (1) the revenues and expenses and (2) the drawing accounts.
  2. b. Prepare a statement of partnership equity for the current year for the partnership of Alvarez and Allison.

a. 1

To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

To provide: The journal entries to close the revenues and expenses for the two partners.

Explanation

The journal entries to close the revenues and expenses for the two partners are as follows:

Date Account Titles and Explanation Debit ($) Credit ($)
Revenues $483,000
              Expenses $421,000
            &...

b.

To determine

To prepare:  The statement of partnership equity for the current year.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

In what ways is economics a science?

Principles of Economics (MindTap Course List)

Why should policymakers think about incentives?

Principles of Microeconomics (MindTap Course List)

Why do economists sometimes offer conflicting advice to policymakers?

Brief Principles of Macroeconomics (MindTap Course List)

PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities. Discounting occurs once 4 year...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Why might purchasing power parity fail to hold?

Fundamentals of Financial Management (MindTap Course List)

Why are demand curves downward sloping?

Economics (MindTap Course List)