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

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Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

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Chapter
Section
Chapter 12, Problem 12.25EX
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.

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Chapter 12 Solutions

Accounting
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