. Problem 1- Partner's Capital and Drawing The following transactions are shown in the records of A partner's capital and drawing accounts: A, capital 1. Beginning balance, 100,000 2. Correction of understement of prior year's income, 10,000 3. Additional invetsment, 240,000 A, drawing 1. Temporary withdrawals, 60,000 2. Partnership debts paid by A, 90,000 3. Partnership claims collected and retained by A, 20,000 The partnership has a debit income summary balance amounting to 150,000 of which 1/3 is the hsare of A. Required: 1. Prepare the T-accountrs for A's capital and-account for A's drawing. Determine their respective ending balances. 2. Make the journal entries to close the income summary account and to close the drawing account.
. Problem 1- Partner's Capital and Drawing The following transactions are shown in the records of A partner's capital and drawing accounts: A, capital 1. Beginning balance, 100,000 2. Correction of understement of prior year's income, 10,000 3. Additional invetsment, 240,000 A, drawing 1. Temporary withdrawals, 60,000 2. Partnership debts paid by A, 90,000 3. Partnership claims collected and retained by A, 20,000 The partnership has a debit income summary balance amounting to 150,000 of which 1/3 is the hsare of A. Required: 1. Prepare the T-accountrs for A's capital and-account for A's drawing. Determine their respective ending balances. 2. Make the journal entries to close the income summary account and to close the drawing account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![SS2
B
D
H.
132 H. Problem 1- Partner's Capital and Drawing
33
34 The following transactions are shown in the records of A partner's capital and drawing accounts:
35
36 A, capital
37
38\
1. Beginning balance, 100,000
2. Correction of understement of prior year's income, 10,000
3. Additional invetsment, 240,000
39
40
41 A, drawing
42
1. Temporary withdrawals, 60,000
2. Partnership debts paid by A, 90,000
3. Partnership claims collected and retained by A, 20,000
43
44
45
46 The partnership has a debit income summary balance amounting to 150,000 of which 1/3 is the hsare of A.
47
48 Required:
49 1. Prepare the T-accountrs for A's capital and -account for A's drawing. Determine their respective ending balances.
50 2. Make the journal entries to close the income summary account and to close the drawing account.
51
52 Problem Il - Loans to and from Partners
53 The loans to and from partners account of Cute and Tong Partnership shows the following ledger:
54
55
Loans to and from Partners
56
1-Jan Cute
50,000
1-Mar Tong
30,000
57
30-Aug Tong
20,000
30-May Cute
60,000
58
59 Required: Make the reclassifying journal entries if the partners agreed to segregate the "loans to and from partners" account using
60 the "loans to partners" (each partner's name) & "loans from partner" (each partner's name).
61
62
83
34](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97787738-08c6-46da-b84b-76a0a81f5f92%2F1fc03e04-7e2a-427f-9127-35dd0737327c%2Foqtclcg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:SS2
B
D
H.
132 H. Problem 1- Partner's Capital and Drawing
33
34 The following transactions are shown in the records of A partner's capital and drawing accounts:
35
36 A, capital
37
38\
1. Beginning balance, 100,000
2. Correction of understement of prior year's income, 10,000
3. Additional invetsment, 240,000
39
40
41 A, drawing
42
1. Temporary withdrawals, 60,000
2. Partnership debts paid by A, 90,000
3. Partnership claims collected and retained by A, 20,000
43
44
45
46 The partnership has a debit income summary balance amounting to 150,000 of which 1/3 is the hsare of A.
47
48 Required:
49 1. Prepare the T-accountrs for A's capital and -account for A's drawing. Determine their respective ending balances.
50 2. Make the journal entries to close the income summary account and to close the drawing account.
51
52 Problem Il - Loans to and from Partners
53 The loans to and from partners account of Cute and Tong Partnership shows the following ledger:
54
55
Loans to and from Partners
56
1-Jan Cute
50,000
1-Mar Tong
30,000
57
30-Aug Tong
20,000
30-May Cute
60,000
58
59 Required: Make the reclassifying journal entries if the partners agreed to segregate the "loans to and from partners" account using
60 the "loans to partners" (each partner's name) & "loans from partner" (each partner's name).
61
62
83
34
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