Entries and Balance Sheet for Partnership Instructions Chart of Accounts Instructions On March 1, 2018, Enc...

Transcribed Image Text:

Entries and Balance Sheet for Partnership Instructions Chart of Accounts Instructions On March 1, 2018, Enc Keene and Renee Wallace form a partnership. Keene agrees to invest $23,400 in cash and merchandise inventory valued at $62,600. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,000 Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow Wallace's Ledger Agreed-Upon Balance Valuation Accounts Receivable $19,900 $19,500 Allowance for Doubtful Accounts 1,200 1,400 Equipment 83,500 55,400 Accumulated Depreciation-Equipment 29,800 Accounts Payable 15,000 15,000 Notes Payable (current) 37,500 37,500 The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $19,000 (Keene) and $24,000 (Wallace), and the remainder equally. Required: 1. Journalize the entries on March 1 to record the investments of Keene and Wallace in the partnership accounts." 2. Prepare a balance sheet as of March 1, 2018, the date of formation of the partnership of Keene and Wallace Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries Enter current assets in order of liquidity "Less", "Add", or colons () will automatically appear if required Enter all amounts as positive numbers 3. After adjustments at February 28, 2019, the end of the first full year of operations, the revenues were $300,000 and expenses were $230,000. for a net income of $70,000. The drawing accounts have debit balances of $19,000 (Keene) and $24,000 (Wallace). Journalize the entries to close the revenues and expenses and the drawing accounts at February 28, 2019* Required: 1. Journalize the entries on March 1 to record the investments of Keene and Wallace in the partnership accounts." 2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons () will automatically appear if required. Enter all amounts as positive numbers. 3. After adjustments at February 28, 2019, the end of the first full year of operations, the revenues were $300,000 and expenses were $230,000, for a net income of $70,000. The drawing accounts have debit balances of $19,000 (Keene) and $24,000 (Wallace) Journalize the entries to close the revenues and expenses and the drawing accounts at February 28, 2019 "Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 13 Labels Current assets Current liabilities For the Year Ended March 1, 20Y8 March 1, 20Y8 Property, plant and equipment Amount Descriptions Total assets Total current assets Total liabilities Total liabilities and members' equity 13 Amount Descriptions Total assets Total current assets Total liabilities Total liabilities and members' equity Total liabilities and partners' equity Total members' equity Total partners' equity Entries and Balance Sheet for Partnership Instructions Chart of Accounts Instructions On March 1, 2018, Enc Keene and Renee Wallace form a partnership. Keene agrees to invest $23,400 in cash and merchandise inventory valued at $62,600. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,000 Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow Wallace's Ledger Agreed-Upon Balance Valuation Accounts Receivable $19,900 $19,500 Allowance for Doubtful Accounts 1,200 1,400 Equipment 83,500 55,400 Accumulated Depreciation-Equipment 29,800 Accounts Payable 15,000 15,000 Notes Payable (current) 37,500 37,500 The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $19,000 (Keene) and $24,000 (Wallace), and the remainder equally. Required: 1. Journalize the entries on March 1 to record the investments of Keene and Wallace in the partnership accounts." 2. Prepare a balance sheet as of March 1, 2018, the date of formation of the partnership of Keene and Wallace Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries Enter current assets in order of liquidity "Less", "Add", or colons () will automatically appear if required Enter all amounts as positive numbers 3. After adjustments at February 28, 2019, the end of the first full year of operations, the revenues were $300,000 and expenses were $230,000. for a net income of $70,000. The drawing accounts have debit balances of $19,000 (Keene) and $24,000 (Wallace). Journalize the entries to close the revenues and expenses and the drawing accounts at February 28, 2019* Required: 1. Journalize the entries on March 1 to record the investments of Keene and Wallace in the partnership accounts." 2. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter current assets in order of liquidity. "Less", "Add", or colons () will automatically appear if required. Enter all amounts as positive numbers. 3. After adjustments at February 28, 2019, the end of the first full year of operations, the revenues were $300,000 and expenses were $230,000, for a net income of $70,000. The drawing accounts have debit balances of $19,000 (Keene) and $24,000 (Wallace) Journalize the entries to close the revenues and expenses and the drawing accounts at February 28, 2019 "Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 13 Labels Current assets Current liabilities For the Year Ended March 1, 20Y8 March 1, 20Y8 Property, plant and equipment Amount Descriptions Total assets Total current assets Total liabilities Total liabilities and members' equity 13 Amount Descriptions Total assets Total current assets Total liabilities Total liabilities and members' equity Total liabilities and partners' equity Total members' equity Total partners' equity