Karen Milan open apartment locator owned and operated by Karen Milan, she engages in the following transactions: Milan Invests $ 68,500 of personal fund to start the business Purchase supplies on account $ 586 Paid cash for land near the campus $ 35,000 Received cash from clients $ 2,000 Charged clients for rent rooms on account $ 2,800 Paid wage expense $ 800 Paid utility expense $ 350 Paid creditors on account $300 Received cash from client on account $ 1,800 Karen withdraws cash for personal use $ 1,500 Required: Analyze the preceding transactions in terms of their effects on accounting equation of Karen Milan Apartment Locaters, show the balances only after the last transactions Prepare the income statement, statement of owners equity and the balance sheet of business after recording the transactions.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Karen Milan open apartment locator owned and operated by Karen Milan, she engages in the following transactions:
- Milan Invests $ 68,500 of personal fund to start the business
- Purchase supplies on account $ 586
- Paid cash for land near the campus $ 35,000
- Received cash from clients $ 2,000
- Charged clients for rent rooms on account $ 2,800
- Paid wage expense $ 800
- Paid utility expense $ 350
- Paid creditors on
account $300 - Received cash from client on account $ 1,800
- Karen withdraws cash for personal use $ 1,500
Required:
- Analyze the preceding transactions in terms of their effects on
accounting equation of Karen Milan Apartment Locaters, show the balances only after the last transactions - Prepare the income statement, statement of owners equity and the
balance sheet of business after recording the transactions.
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