Finnegan and Healey form a partnership on January 1, 2024, contributing $60,000 and $19,000, respectively. The partnership had net income of $160,500. Based on the partnership agreement, Finnegan's share of net income was $95,500 and Healey's share was $65,000. Finnegan and Healey each withdrew cash of $25,000 for personal use during the year. Read the requirements. Requirement 1. Journalize the entry to close net income to the partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Requirements 1. Journalize the entry to close net income to the partners. 2. Journalize closing the partners' withdrawal accounts. Explanations are not required. 3. Calculate the balances in each partners' capital account after allocation of net income and partners' withdrawals of cash. (Assume the partnership's accounting year began on January 1, 2024, and ended on December 31, 2024.)

Finnegan and Healey form a partnership on January 1, 2024, contributing $60,000 and $19,000, respectively. The partnership had net income of $160,500. Based on the partnership agreement, Finnegan's share of net income was $95,500 and Healey's share was $65,000. Finnegan and Healey each withdrew cash of $25,000 for personal use during the year. Read the requirements. Requirement 1. Journalize the entry to close net income to the partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Requirements 1. Journalize the entry to close net income to the partners. 2. Journalize closing the partners' withdrawal accounts. Explanations are not required. 3. Calculate the balances in each partners' capital account after allocation of net income and partners' withdrawals of cash. (Assume the partnership's accounting year began on January 1, 2024, and ended on December 31, 2024.)

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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