D. Carson and F. Leggatt formed a partnership on June 1 to operate a shoe store. Carson contributed $50,000 cash and Leggatt contributed $50,000 worth of shoe inventory. During the month of June, the following transactions took place:
1. Additional shoe inventory was purchased at a cost of $24,000 cash.
2. Total cash sales for the month were $31,000. The inventory that was sold had a cost of $15,500.
3. Carson withdrew $6,200 of cash drawings. Leggatt withdrew only $3,700 of cash drawings.
4. The partnership borrowed $50,000 from the Third National Bank.
5. Land and a building were purchased at a cash cost of $25,000 and $50,000, respectively.
Required:
a. Prepare a balance sheet as of June 1.
b. Prepare a reconciliation of the beginning and ending balances for each owner's capital account.
c. Prepare a balance sheet as of June 30.