On April 1, 2020, Harry Regal and Meghan Merle formed a partnership in Alberta, renting reusable moving boxes.ContributionRegal$97,000 cashMerle$137,000 land$50,000 buildingProfit sharing$107,000 salaryallowance15% of originalcapital investments$77,00015% of originalcapital investments$62,000Cash withdrawal during yearNet Income during the year was $177,000 and was in the Income Summary account. The partners agreed to share profit by allowingsalary allowance, interest on their initial investments, and sharing the balance equally.Required:1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31closing of the Income Summary and withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of the end of 2020.RegalMerleCapital account balances

Note :- It is assumed that salary is paid only to Regal. Capital account balabce Regal = 115,250…

Answered: 2. Determine the balances of the…

Business

Accounting

2. Determine the balances of the partners' capital accounts as of the end of 2020. Regal Merle Capital account balances

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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