Allocating profits and losses to the partners [15–20 min]Bob Freeley and Jack Hart each wi...

Allocating profits and losses to the partners [15–20 min]

Bob Freeley and Jack Hart each withdrew cash of $10,000 for personal use during the year. Using the data from situation (c) in Exercise,

Requirements

1. Journalize the entries to close net income to the partners.

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2. Journalize closing the partners’ drawing accounts. Explanations are not required.

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3. Calculate the balances in each partners’ capital account after posting the entries.

Exercise