Question

For Carla Vista Co., beginning capital balances on January 1, 2020, are Nancy Payne $18,900 and Ann Dody $17,200. During the year, drawings were Payne $8,000 and Dody $4,400. Net income was $26,300, and the partners share income equally. Prepare the partners' capital statement for the year. (List Items that increase partners' capital first.) CARLA VISTA CO. Partners Capital Statement Ν. Ραγια A. Dody Total Prepare the owners' equity section of the balance sheet at December 31, 2020.

Answer 1

CARLA VISTA CO. Partner's Capital Statements For the Year ended December 31, 2020 N. Payne Capital balance as on Jan 01, 2020 $ 18,900 $ Add: Net Income 13,150 $ $ 32,050 $ Less: Drawings 8,000 $ Capital Balance as on December 31, 2020 $ 24,050$ A. Dody 17,200 $ 13,150 $ 30,350 $ 4,400 $ 25,950 $ Total 36,100 26,300 62,400 12,400 50,000 Explanations: Calculation of Net Income Net Income is Shared Equally. i.e $26,300/2 = $ 13,150 Capital Balance as on December 31, 2020 N. Payne's Ending Capital = $18900+13150 -8000 = $24050 A. Dody's Ending Capital = $17200 + 13150 - 4400 = $25950 CARLA VISTA CO. Partial Balance Sheet For the Year ended December 31, 2020 Owner's Equity N. Payne's Capital A. Doby's Capital $ Total Owner's Equity 24,050 25,950 $ 50,000