Question

Tom and Julle formed a management consulting partnership on January 1, 2016. The fair value of the net assets invested by each partner follows: Tom $11,900 7,200 1,900 32,100 Julle $12,100 5,400 700 Cash Accounts receivable Office supplies Office equipment Land Accounts payable Mortgage payable 1,800 29,700 4,800 20,400 During the year, Tom withdrew $14,100 and Julle withdrew $12,200 in anticipation of operating profits. Net profit for 2016 was $54,700, which is to be allocated based on the original net capital Investment. (a) Prepare journal entries to: 1. 2. 3. Record the initial Investment in the partnership. Record the withdrawals ose Income Summary and Drawing accounts (Round Intermediate calculations to 6 decimal places, e.g. 1.576843 answers to o decimal places, e.g. 5,125. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1.

Answer 1

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A B C E F G H к 1 2 Sr.no Debit Credit Sr.no 3 1 3 11900 7200 Accounts title Debit Credit Income summary 54700 Tom, Capital 37920.41 Julie, Capital 16779.59 4 Accounts title Cash Accounts Receivable Office supplies Office Equipment Accounts payable Tom, capital 5 5 1900 32100 7 14100 1800 51300 Tom, capital Tom, Drawing 00 14100 9 10 12100 12200 Julie, Capital Julie, Drawing 11 12200 5400 700 12 13 Cash Accounts Receivable Office supplies Land Accounts payable Mortgage payable Julie, capital 29700 14 48001 204001 15 16 22700 17 18 2 14100 Tom, Drawing Cash 19 14100 20 21 12200 Julie, Capital Cash 22 12200 23 24 25 KI Sheet234 Sheet235 Sheet236 Sheet237 Sheet238 Sheet239 Sheet240 Sheet241 Stats

For calculation ref:

A B С D E F G H 1 2 3 Sr.no Accounts title Debit Credit 3 Income summary 54700 Tom, Capital =13*E8/(E8+E16) Julie, Capital =13*E16/(E8+E16) 4 5 Sr.no Accounts title Debit Credit 1 Cash 11900 Accounts Receivable 7200 Office supplies 1900 Office Equipment 32100 Accounts payable 1800 Tom, capital =SUM(D3:06) -E7 5 5 7 14100 Tom, capital Tom, Drawing 14100 8 9 10 12200 Julie, Capital Julie, Drawing 11 12200 12 13 Cash 12100 Accounts Receivable 5400 Office supplies 700 Land 29700 Accounts payable 4800 Mortgage payable 20400 Julie, capital =SUM(D10:013)-E15-E14 14 15 16 17 18 2 14100 Tom, Drawing Cash 19 =D18 20 21 ie, Capital Cash 12200 12200 22 23 24 25 Sheet234 Sheet235 Sheet236 Sheet237 Sheet238 Sheet239 Sheet240 Sheet241 Stats Ready