90.2K

Verified Solution

Link Copied!

Cash $14,500 $10,200 $19,800 Furniture 16,700 Equipment 18,950 13,650 Total $33,450 $26,900 $33,450
		They also agree that the partnership will assume responsibility for Karens note payable of $4,600.

Dec. 20		Zoe, Karen, and Veronica each withdraw $30,300 cash as a year-end bonus. No other withdrawals were made during the year.
31		Total profit for 2020 was $110,000.

2021
Jan. 5		Zoe and Veronica approve Karens request to withdraw from the partnership for personal reasons. They agree to pay Karen $14,900 cash from the partnership.
6		Zoe and Veronica agree to change their profit-sharing ratio to 4:5, respectively.
Dec. 20		Zoe and Veronica withdraw $42,200 and $45,500 cash, respectively, from the partnership.
31		Total profit for 2021 was $123,750.

2022
Jan. 4		Zoe and Veronica agree to admit Dela Hirjikaka to the partnership. Dela will focus on providing training in organizational skills to clients. Dela invests $31,150 cash for 25% ownership of the partnership.

Record the above transactions. For the profit recognized each year, calculate how it is to be allocated and record the closing of the Income Summary account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer & Explanation Solved by verified expert

See Answer