Question

Dashboard X Ceng NW X W Nails can X Fly Waiver X Vassignment/takeAssignment Main doinvokerStake AssignmentSessionLocatorinprogress-false Calculator Entries and Balance Sheet for Partnership On April 1, 2011, Whitney Lang and Ell Capri form a partnership. Lang agrees to invest $12,100 cash and merchandise inventory valued at $32,700. Caprl invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes suficient cash to bring his total capital to $1,000 Details regarding the book values of the business assets and liabilities, and the agreed Valuations, Follow: Capri's Ledger Balance $18,500 Agreed-Upon Balance $15.000 300 1,000 28,800 Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Equipment Accumulated Depreciation Equipment Accounts Payable Notes Payable (current) 35,200 21,500 36,300 12,100 6,500 4,000 6,500 4,000 The partnership agreement includes the following provisions regarding the division of net income interest of 10% on original Investments, salary allowances of $36,300 (Lang) and $22,100 (Capri), and the remainder equally Required: 1. Journalize the entries to record the investments of Lang and Capri in the partnership accounts. If an amount box does not require an entry, leave it blank. E

Answer 1

Account (9 Debit (B/CREDIH Any 1. Date LApril Cash Merchandise Inventory 12,100 32,700 44,800 Whitney lang, Capital LARM Cash 13,500 Accounts Receivable touch 15,000 Merchandise Inventory 28, 800 Equipment 35,200 Allowance for Doubtful Accounts payable Noles payable Eli Capri, Capital 1,000 GISOO 4,000 81,000 2. LANG AND CAPRI Balance sheet Assets 00 $ 25,600 $15,000 (1,000) 14,000 61,500 Current assalsa ( 13500+12.00) Account receivable (3. Len allowance for doubtful Merchandise Inventor Total current Assets 7 Equipment Total Assets Current liabilifies - Accounts payable Notes payable Total liabilities $101100 101,100 3120 $ 136,300 liabilities $ 6500 4,000 10,500 $10,500

744800 81,000 Parmer's Equity Whitney lang Capital Ell Copou , Capital Tofal Parmers Equity Total liabilities and Poochors' Equity (125 Bootloo) 125,800 18 136,300 qucome Summary 3. Account DEBIT CREDT 31 Moon 109,000 Whibney laugº, Capital 59,790 Eli capel, capital 49,210 31 Mei Whisney lang, Capital 38,000 Eli Capri, Capital - 33,000 Whitey Long, boating 39,000 Eli capei, drawing 33,000 Note - Calculation long Capoel Total Interest allowance $4480 $ 8,100 $ 12,880 36,300 Salary allowance 22,100 58 400 3. Remain Income 19,010 19,010 38020 4 Net Income 959,790 $ 49210 $109,006 L 44800 X 10% = $ 4480 81,000 X 104 = $ 800 ($109000-12080-58400 ) xk 19.010