The capital accounts of Hassan Khan and Dmitri Palovich have balances of $877,500 and $710,800, respectively, on January 1, 20Y4, the beginning of the fisca year. On July 10, Khan invested an additional $25,000. During the year, Khan and Palovich withdrew $110,000 and $150,000, respectively, and net income for the year was $325,000. Revenues were $1,260,000, and expenses were $935,000. The articles of partnership make no reference to the division of net income. a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts on December 31. b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich.
The capital accounts of Hassan Khan and Dmitri Palovich have balances of $877,500 and $710,800, respectively, on January 1, 20Y4, the beginning of the fisca year. On July 10, Khan invested an additional $25,000. During the year, Khan and Palovich withdrew $110,000 and $150,000, respectively, and net income for the year was $325,000. Revenues were $1,260,000, and expenses were $935,000. The articles of partnership make no reference to the division of net income. a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts on December 31. b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PB
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The capital accounts of Hassan Khan and Dmitri Palovich have balances of $877,500 and $710,800, respectively, on January 1, 20Y4, the beginning of the fisca
year. On July 10, Khan invested an additional $25,000. During the year, Khan and Palovich withdrew $110,000 and $150,000, respectively, and net income for
the year was $325,000. Revenues were $1,260,000, and expenses were $935,000. The articles of partnership make no reference to the division of net income.
a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts on December 31.
b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffcc352c5-d482-4982-ba67-ae3784b063ff%2Fefc5ce4a-a892-4ee9-be27-34990875f42e%2Fiebti8j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Instructions
The capital accounts of Hassan Khan and Dmitri Palovich have balances of $877,500 and $710,800, respectively, on January 1, 20Y4, the beginning of the fisca
year. On July 10, Khan invested an additional $25,000. During the year, Khan and Palovich withdrew $110,000 and $150,000, respectively, and net income for
the year was $325,000. Revenues were $1,260,000, and expenses were $935,000. The articles of partnership make no reference to the division of net income.
a. Journalize the entries to close (1) the revenues and expenses and (2) the drawing accounts on December 31.
b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich.
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