1) Kaylee and Symone decided to start a partnership. Symone contributed $10,000 and a piece of equipment that had a fair market value of $20,000. There was a loan on the equipment of $5000 that the partnership assumed. Kaylee contributed $20,000 in cash. Prepare the necessary journal entries to account for the partnership formation.

• Kaylee and Symone took distributions from the company this year in the amounts of $500 and $800 respectively. Prepare the necessary journal entry.

• The profit for the company this year was $10,000. Kaylee and Symone have a partnership agreement that calls for a 45%/55% split of the profits. Prepare the necessary journal entry.

• What if Kaylee and Symone’s partnership agreement called for a split based on an allocation of their Capital balance. Prepare the necessary journal entry.

• Kaylee decides to sell her interest in the partnership to Dylan for $35,000. What would happen on the Partnership’s books? What would the journal entry be?

• Symone and Dylan decide to let Cristian join the partnership. He contributes $10,000 into the partnership.

• The partnership is being liquidated. The partnership's profit/loss agreement is Symone 50%, Dylan, 30% and Cristian 20%. The equipment can be sold for $25,000. Prepare the necessary journal entries.

The partnership has the following balances on its trial balance:

Cash DEBIT                                       $50,000

Equipment DEBIT                             30,000

Accumulated Depreciation CREDIT                        $10,000

Accounts Payable CREDIT                                          5,000

Note Payable CREDIT                                                  1,000

Symone, Capital CREDIT                                            30,000

Dylan, Capital CREDIT                                                23,500

Cristian, Capital CREDIT                                            10,500

Totals                                             $80,000                $80,000