You are closing the books for a partnership in the month of January. As of January 1st You see $100,000 in distributions, $200,000 in contributions, $500,000 in Retained Earnings and Net Income of $1,000. How should this be presented on the Balance Sheet? The distributions, contributions, retained earnings, and net income should all be liability accounts. The distributions, contributions, and retained earnings should all be closed to the partners' capital accounts as of January 1st The distributions, contributions, and the net income should all be closed to Retained Earnings on January 1st The distributions and contributions should be closed to retained earnings on January 1st.
You are closing the books for a partnership in the month of January. As of January 1st You see $100,000 in distributions, $200,000 in contributions, $500,000 in Retained Earnings and Net Income of $1,000. How should this be presented on the Balance Sheet? The distributions, contributions, retained earnings, and net income should all be liability accounts. The distributions, contributions, and retained earnings should all be closed to the partners' capital accounts as of January 1st The distributions, contributions, and the net income should all be closed to Retained Earnings on January 1st The distributions and contributions should be closed to retained earnings on January 1st.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You are closing the books for a
partnership in the month of January. As
of January 1st You see $100,000 in
distributions, $200,000 in contributions,
$500,000 in Retained Earnings and Net
Income of $1,000. How should this be
presented on the Balance Sheet?
The distributions, contributions,
retained earnings, and net income
should all be liability accounts.
The distributions, contributions, and
retained earnings should all be closed
to the partners' capital accounts as of
January 1st
The distributions, contributions, and the
net income should all be closed to
Retained Earnings on January 1st
The distributions and contributions
should be closed to retained earnings
on January 1st.
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