Rules for the Distribution of Profits or Losses Laguna and Cadelina share profits and losses on a fractional-share basis with two-fifths for Laguna and three-fifths for Cadelina. This year the firm has profits of P650,000. The beginning Capital balances for the year were P900,000 for Laguna and P1,300,000 for Cadelina. The balances of the Drawing accounts are P300,000 for Laguna and P240,000 for Cadelina. Required: Journalize the entries to close income summary and the partners' drawing accountsS on Dec. 31.

Rules for the Distribution of Profits or Losses Laguna and Cadelina share profits and losses on a fractional-share basis with two-fifths for Laguna and three-fifths for Cadelina. This year the firm has profits of P650,000. The beginning Capital balances for the year were P900,000 for Laguna and P1,300,000 for Cadelina. The balances of the Drawing accounts are P300,000 for Laguna and P240,000 for Cadelina. Required: Journalize the entries to close income summary and the partners' drawing accountsS on Dec. 31.

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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