Mike Seedan and Ana Lei operate the partnership SeeLei Services. The partners share profit or loss at 50% each. Mike had an opening capital account balance of $60,000 on January 1, 2023, and withdrew $35,000 during the year. Ana had an opening balance of $80,000 and withdrew $20,000. SeeLei Services earned a net income of $80,000 in 2023. What would be listed on the statement of partners' equity for the year ended December 31, 2023 for Ana Lei?Select one:a. Partner's Capital, January 1, 2023 of $60,000+ Net Income of $40,000 Withdrawals of $20,000= Partner's Capital, December 31, 2023 of $80,000b. Partner's Capital, January 1, 2023 of $60,000+ Net Incomp of $40,000 Withdrawals of $35,000 = Partners capitalDecember 31, 2023 of $65, 000c. Partner's Capital, January 1, 2023 of $80,000+ Net Income $80,000 Withdrawals of $20,000= Partner's Capital, December 31, 2023 of $140,000 d. Partner's Capital, January 1, 2023 of $80,000+ Net Income f $40,000 Withdrawals of $20,000= Partner's Capital, December 31, 2023 of $100,00019 Search
Mike Seedan and Ana Lei operate the partnership SeeLei Services. The partners share profit or loss at 50% each. Mike had an opening capital account balance of $60,000 on January 1, 2023, and withdrew $35,000 during the year. Ana had an opening balance of $80,000 and withdrew $20,000. SeeLei Services earned a net income of $80,000 in 2023. What would be listed on the statement of partners' equity for the year ended December 31, 2023 for Ana Lei?Select one:a. Partner's Capital, January 1, 2023 of $60,000+ Net Income of $40,000 Withdrawals of $20,000= Partner's Capital, December 31, 2023 of $80,000b. Partner's Capital, January 1, 2023 of $60,000+ Net Incomp of $40,000 Withdrawals of $35,000 = Partners capitalDecember 31, 2023 of $65, 000c. Partner's Capital, January 1, 2023 of $80,000+ Net Income $80,000 Withdrawals of $20,000= Partner's Capital, December 31, 2023 of $140,000 d. Partner's Capital, January 1, 2023 of $80,000+ Net Income f $40,000 Withdrawals of $20,000= Partner's Capital, December 31, 2023 of $100,00019 Search
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
i.2
Transcribed Image Text:Mike Seedan and Ana Lei operate the partnership SeeLei Services. The partners share profit or loss at 50% each. Mike had an opening capital account balance of
$60,000 on January 1, 2023, and withdrew $35,000 during the year. Ana had an opening balance of $80,000 and withdrew $20,000. SeeLei Services earned a
net income of $80,000 in 2023. What would be listed on the statement of partners' equity for the year ended December 31, 2023 for Ana Lei?Select one:a.
Partner's Capital, January 1, 2023 of $60,000 + Net Income of $40,000 - Withdrawals of $20,000 Partner's Capital, December 31, 2023 of $80, 000b.
Partner's Capital, January 1, 2023 of $60,000 + Net Incomp of $40,000 - Withdrawals of $35,000 Partners capital December 31, 2023 of $65, 000c.
Partner's Capital, January 1, 2023 of $80,000 + Net Income of $80,000 - Withdrawals of $20,000 Partner's Capital, December 31, 2023 of $140,000 d.
Partner's Capital, January 1, 2023 of $80,000 + Net Income of $40,000 - Withdrawals of $20,000 = Partner's Capital, December 31, 2023 of $100, 00019
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