Question

help with req 1-4

LOT is a partnership owned by Lisby, Oyler, and Tellman. The partners' profit-and-loss-sharing ratio is 3:1:4, respectively. The adjusted trial balance of the partnership at November 30, 2018, follows: EB (Click the icon to view the trial balance.) Read the requirements. Requirement 1. Prepare a statement of partners' equity for the month ended November 30, 2018. Use a separate column for each partner in the statement of partners' equity. Assume no new capital contributions during November. LOT Statement of Partners' Equity Month Ended November 30, 2018 LisbyOyler Tellman Total Capital, November 1, 2018

Answer 1

1.

LOT
Statement of Partners' Equity
Month Ended November 30, 2018
	Lisby	Oyler	Tellman	Total
Capital, November 1, 2018	100000	70000	30000	200000
Net loss	3000	1000	4000	8000
Withdrawals	15000	11000	3000	29000
Capital, November 30, 2018	82000	58000	23000	163000

Note: All amounts have been entered as positive numbers in the absence of instructions. Kindly enter as required.

2.

No.	Date	General Journal	Debit	Credit
1	Nov. 30	Sales revenue	62000
		Income summary		62000
		(To close revenue account)
2	Nov. 30	Income summary	70000
		Cost of goods sold		34000
		Salaries expense		20000
		Rent expense		16000
		(To close expense accounts)
3	Nov. 30	Lisby, capital ($8000 x 3/8)	3000
		Oyler, capital ($8000 x 1/8)	1000
		Tellman, capital ($8000 x 4/8)	4000
		Income summary		8000
		(To close income summary)
4	Nov. 30	Lisby, capital	15000
		Oyler, capital	11000
		Tellman, capital	3000
		Lisby, withdrawals		15000
		Oyler, withdrawals		11000
		Tellman, withdrawals		3000
		(To close drawings to capital)

3.

Date	General Journal	Debit	Credit
Dec. 1	Tellman, capital	23000
	Cash		1000
	Merchandise inventory		7000
	Lisby, capital ($15000 x 3/4)		11250
	Oyler, capital ($15000 x 1/4)		3750
	(To record withdrawal from partnership)

4.

No.	Date	General Journal	Debit	Credit
1	Dec. 1	Cash	176000
		Accumulated depreciation-building	30000
		Lisby, capital ($29000 x 3/4)	21750
		Oyler, capital ($29000 x 1/4)	7250
		Building		235000
		(To record sale of building)
2	Dec. 1	Accounts payable	10000
		Mortgage payable	40000
		Cash		50000
		(To record payment of liabilities)
3	Dec. 1	Lisby, capital	71500
		Oyler, capital	54500
		Cash		126000
		(To record distribution of remaining cash)