Partnership entries and statement of partnership equity The capital accounts of Hassan Khan and Dmitri Palovich have balances of $75,000 and $54,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On July 10, Khan invested an additional $8,000. During the year, Khan and Palovich withdrew $40,000 and $32,000, respectively, and net income for the year was $102,000. Revenues wer $523,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income. a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank. 88 Journalize the entry to close the drawing accounts. If an amount box does not require an entry, leave it blank. b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich. If an amount is zero or a blank, enter in 0. Khan and Palovich Statement of Partnership Equity For the Year Ended December 31, 20Y4 Line Item Description Balances, January 1, 2014 Investment by partner Net income for the year Partner withdrawals Balances, December 31, 20Y4 Hassan Dmitri Khan Palovich Total

Partnership entries and statement of partnership equity The capital accounts of Hassan Khan and Dmitri Palovich have balances of $75,000 and $54,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On July 10, Khan invested an additional $8,000. During the year, Khan and Palovich withdrew $40,000 and $32,000, respectively, and net income for the year was $102,000. Revenues wer $523,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income. a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank. 88 Journalize the entry to close the drawing accounts. If an amount box does not require an entry, leave it blank. b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich. If an amount is zero or a blank, enter in 0. Khan and Palovich Statement of Partnership Equity For the Year Ended December 31, 20Y4 Line Item Description Balances, January 1, 2014 Investment by partner Net income for the year Partner withdrawals Balances, December 31, 20Y4 Hassan Dmitri Khan Palovich Total

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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