X, Yand C formed a partnership on January 1, 2023. The fair value of the net...

 

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X, Yand C formed a partnership on January 1, 2023. The fair value of the net assets invested by each partner as follow: X: $500,000 Cash and Land S. Y: $200,000 Cash and Account receivables S.. C: $50,000 Cash; Building $30,000 and Liability S..... The ending capital balance after the equally distributing of the net income which was $300,000 and drawing $20,000 $10,000 and $60,000 respectively to X; Y and C is: X: $630,000 Y: $380,000 C: $110,000 Instruction: Prepare journal entries to: (1) Record the initial investment in the partnership. (2) Record the withdrawals. (3) Close the income summary and drawing accounts. X, Yand C formed a partnership on January 1, 2023. The fair value of the net assets invested by each partner as follow: X: $500,000 Cash and Land S. Y: $200,000 Cash and Account receivables S.. C: $50,000 Cash; Building $30,000 and Liability S..... The ending capital balance after the equally distributing of the net income which was $300,000 and drawing $20,000 $10,000 and $60,000 respectively to X; Y and C is: X: $630,000 Y: $380,000 C: $110,000 Instruction: Prepare journal entries to: (1) Record the initial investment in the partnership. (2) Record the withdrawals. (3) Close the income summary and drawing accounts.

Answer rating: 100% (QA)

1 Record the initial investment in the partnership X Debit Cash 500000 Debit Land assuming fair valu... View the full answer