William Dione, Julie Porter, and Regina Westlake started a partnership to operate a courier service. The partnership
Question:
William Dione, Julie Porter, and Regina Westlake started a partnership to operate a courier service. The partnership (DP&W Couriers) had the following transactions:
2015
Jan. 2 Dione, Porter, and Westlake formed the partnership by signing an agreement that stated that all profits would be shared in a 2:3:5 ratio and by making the following investments:
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Dec. 31 The partnership reported net income of $53,500 for the year.
2016
Jun. 7 Dione and Westlake agreed that Porter could sell her share of the partnership to Ray Ewing for $82,500. The new partners agreed to keep the same profit sharing arrangement (2:3:5 for Dione: Ewing: Westlake).
Dec. 31 The partnership reported a net loss of $67,000 for the year.
2017
Jan. 3 The partners agreed to liquidate the partnership. On this date, the balance sheet showed the following items (all accounts have their normal balances):
Cash ....................................................................................................... $ 17,500
Accounts receivable ............................................................................ 316,000
Allowance for uncollectible accounts............................................... 22,500
Office furniture .................................................................................... 74,500
Vehicles ................................................................................................. 240,000
Accumulated amortization (total) .................................................... 49,500
Accounts payable ................................................................................ 386,500
The assets were sold for the following amounts:
Accounts receivable ............................................................................ $190,000
Office furniture .................................................................................... 82,500
Vehicles ................................................................................................. 106,000
Dione and Ewing both have personal assets, but Westlake does not.
Required
Journalize all of the transactions for the partnership.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
Step by Step Answer:
General Journal DATE 2015 ACCOUNT TITLES AND EXPLANATIONS POST REF DEBIT CREDIT Jan 2 Cash 34000 Accounts Receivable 94500 Office Furniture 15000 Vehi...View the full answer
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
