On June 1, 2023, Jill Bow and Aisha Adams formed a partnership to open a gluten-free...

   

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On June 1, 2023, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $284,000 cash and $368,000 of equipment, respectively. The partnership also assumed responsibility for a $44,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $154,000, both are to receive an annual interest allowance of 10% of their original capital investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2023, Adams withdrew cash of $104,000. At year-end, May 31, 2024, the Income Summary account had a credit balance of $420,000. On June 1, 2024, Peter Williams invested $124,000 and was admitted to the partnership for a 20% interest in equity. Required: 1. Prepare journal entries for the following dates. a. June 1, 2023 b. November 20, 2023 View transaction list Journal entry worksheet 1 Record the withdrawal by partner. Note: Enter debits before credits. Date Nov 20, 2023 Record entry General Journal Clear entry Debit Credit View general journal c. May 31, 2024 View transaction list Journal entry worksheet 1 Record the closing of profit to capital. Note: Enter debits before credits. Date May 31, 2024 Record entry General Journal Clear entry Debit Credit View general journal d. June 1, 2024 View transaction list Journal entry worksheet 1 Record the admission of Williams for a 20% interest. Note: Enter debits before credits. Date June 01, 2024 Record entry General Journal Clear entry Debit Credit View general journal 2. Calculate the balance in each partner's capital account immediately after the June 1, 2024, entry. On June 1, 2023, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $284,000 cash and $368,000 of equipment, respectively. The partnership also assumed responsibility for a $44,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $154,000, both are to receive an annual interest allowance of 10% of their original capital investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2023, Adams withdrew cash of $104,000. At year-end, May 31, 2024, the Income Summary account had a credit balance of $420,000. On June 1, 2024, Peter Williams invested $124,000 and was admitted to the partnership for a 20% interest in equity. Required: 1. Prepare journal entries for the following dates. a. June 1, 2023 b. November 20, 2023 View transaction list Journal entry worksheet 1 Record the withdrawal by partner. Note: Enter debits before credits. Date Nov 20, 2023 Record entry General Journal Clear entry Debit Credit View general journal c. May 31, 2024 View transaction list Journal entry worksheet 1 Record the closing of profit to capital. Note: Enter debits before credits. Date May 31, 2024 Record entry General Journal Clear entry Debit Credit View general journal d. June 1, 2024 View transaction list Journal entry worksheet 1 Record the admission of Williams for a 20% interest. Note: Enter debits before credits. Date June 01, 2024 Record entry General Journal Clear entry Debit Credit View general journal 2. Calculate the balance in each partner's capital account immediately after the June 1, 2024, entry.

Answer rating: 100% (QA)

a June 1 2023 Journal Entry Record the contribution of cash and equipment by the partners assumption ... View the full answer