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Surj Uppal and Parvinder Atwal began a new business on February 14, when each invested $161,500 in the company. On December 20, it was decided that $62,200 of the company's cash would be distributed equally between the owners. Two cheques for $31,100 were prepared and given to the owners on December 23. On December 31, the company reported a $124,400 profit. Required: Prepare two sets of journal entries to record the investments by the owners, the distribution of cash to the owners, the closing of the Income Summary account, and the withdrawals or dividends under these alternative assumptions: a. The business is a partnership. View transaction list Journal entry worksheet 1 2 3 4

Surj Uppal and Parvinder Atwal began a new business on February 14, when each invested $161,500 in the company. On December 20, it was decided that $62,200 of the company's cash would be distributed equally between the owners. Two cheques for $31,100 were prepared and given to the owners on December 23. On December 31, the company reported a $124,400 profit. Required: Prepare two sets of journal entries to record the investments by the owners, the distribution of cash to the owners, the closing of the Income Summary account, and the withdrawals or dividends under these alternative assumptions: a. The business is a partnership. View transaction list Journal entry worksheet 1 2 3 4

FINANCIAL ACCOUNTING
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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Surj Uppal and Parvinder Atwal began a new business on February 14, when each invested $161,500 in the company. On December 20, it was decided that $62,200 of the company's cash would be distributed equally between the owners. Two cheques for $31,100 were prepared and given to the owners on December 23. On December 31, the company reported a $124,400 profit. Required: Prepare two sets of journal entries to record the investments by the owners, the distribution of cash to the owners, the closing of the Income Summary account, and the withdrawals or dividends under these alternative assumptions: a. The business is a partnership. View transaction list Journal entry worksheet < 1 2 3 4 and the investment into business by partners. 4
Transcribed Image Text:Surj Uppal and Parvinder Atwal began a new business on February 14, when each invested $161,500 in the company. On December 20, it was decided that $62,200 of the company's cash would be distributed equally between the owners. Two cheques for $31,100 were prepared and given to the owners on December 23. On December 31, the company reported a $124,400 profit. Required: Prepare two sets of journal entries to record the investments by the owners, the distribution of cash to the owners, the closing of the Income Summary account, and the withdrawals or dividends under these alternative assumptions: a. The business is a partnership. View transaction list Journal entry worksheet < 1 2 3 4 and the investment into business by partners. 4
b. The business is a corporation that issued 1,000 common shares. Cash dividend account is used for declaring dividends View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Date February 14 5 Record the issuance of common shares. General Journal Debit 4 Credit
Transcribed Image Text:b. The business is a corporation that issued 1,000 common shares. Cash dividend account is used for declaring dividends View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Date February 14 5 Record the issuance of common shares. General Journal Debit 4 Credit
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