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sharp and townson had capital balances of 60,000 and 120,000 respectively on january 1 of the current year. on may 8, sharp invested an additional 10,000 in the partnership. during the year, sharp and townson withdrew 25,000 and 45,000 respectively. after closing all expense and revenue accounts at the end of the year, income summary has a credit balance of 90,000, that sharp and townson have agreed to split on a 2:1 basis, respectively. Journalize the entries to close the income summary account and the drawing accounts ......

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Hubert Koch
Hubert KochLv2
29 Sep 2019

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The capital accounts of Gary Menendez and Melissa Breeden have balances of $75,000 and $55,000, respectively, on January 1, 2012, the beginning of the current fiscal year. On April 10, Menendez invested an additional $12,000. During the year, Menendez and Breeden withdrew $44,000 and $35,000, respectively, and net income for the year was $92,000. The articles of partnership make no reference to the division of net income.

n May 1, Fine and Max formed a partnership. Fine contributedcash of $90,000 and equipment valued at $152,000. Max contributedland valued at $120,000 and a building valued at $250,000. Thepartnership also assumed responsibility for Max's $110,000long-term note payable associated with the land and building. Thepartners agreed to share income as follows: Fine is to receive asalary allowance of $38,000, both are to receive an annual interestallowance of 8% of their beginning-year capital investments, andany remaining income or loss is to be shared equally. During theyear, Fine withdrew $40,000 and Max withdrew $42,000 cash. Afterthe adjusting and closing entries are made to the revenue andexpense accounts at the end of the year, the Income Summary accounthad a credit balance of $140,000. Prepare the journal entries torecord (a) the partners' initial capital investments, (b) theircash withdrawals, and (c) closing of both the Withdrawals andIncome Summary accounts.

1. Create a Journal Entry

2. Income distribution Table

The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Debits Credits Cash 33,500 Accounts receivable 10,000 Equipment 15,000 Accumulated depreciation 4,500 Salaries payable 6,000 Common stock 41,000 Retained earnings 7,000 Total 58,500 58,500 The following is a summary of the transactions for the year:

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Required: Entries

1) Record the entry to close the revenue accounts using the income summary.

2)Record the entry to close the expense accounts using the income summary.

3)Record the entry to close the income summary account.

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