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The medical practice of Dr. W. Johnson and Dr. M. Brown had the following general ledger account balances at April 30, 2024, its fiscal year end: Accounts payable $22,600 M. Brown, drawings $100,800 Accumulated depreciation-equipment 14,300 Operating expenses 124,600 Cash 30,000 Service revenue 314,200 Equipment 62,600 W. Johnson, capital 30,700 M. Brown, capital 42,000 W. Johnson, drawings 105,800 1)Calculate the profit or loss for the year. 2)Prepare the statement of partners' equity, assuming the doctors share profit or loss equally.

The medical practice of Dr. W. Johnson and Dr. M. Brown had the following general ledger account balances at April 30, 2024, its fiscal year end: Accounts payable $22,600 M. Brown, drawings $100,800 Accumulated depreciation-equipment 14,300 Operating expenses 124,600 Cash 30,000 Service revenue 314,200 Equipment 62,600 W. Johnson, capital 30,700 M. Brown, capital 42,000 W. Johnson, drawings 105,800 1)Calculate the profit or loss for the year. 2)Prepare the statement of partners' equity, assuming the doctors share profit or loss equally.

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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The medical practice of Dr. W. Johnson and Dr. M. Brown had the following general ledger account balances at April 30, 2024, its fiscal year end: Accounts payable $22,600 M. Brown, drawings $100,800 Accumulated depreciation-equipment 14,300 Operating expenses 124,600 Cash 30,000 Service revenue 314,200 Equipment 62,600 W. Johnson, capital 30,700 M. Brown, capital 42,000 W. Johnson, drawings 105,800 1)Calculate the profit or loss for the year. 2)Prepare the statement of partners' equity, assuming the doctors share profit or loss equally.
Transcribed Image Text:The medical practice of Dr. W. Johnson and Dr. M. Brown had the following general ledger account balances at April 30, 2024, its fiscal year end: Accounts payable $22,600 M. Brown, drawings $100,800 Accumulated depreciation-equipment 14,300 Operating expenses 124,600 Cash 30,000 Service revenue 314,200 Equipment 62,600 W. Johnson, capital 30,700 M. Brown, capital 42,000 W. Johnson, drawings 105,800 1)Calculate the profit or loss for the year. 2)Prepare the statement of partners' equity, assuming the doctors share profit or loss equally.
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