Partnership It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio. To provide: The journal entries to close the Income Summary and expenses for the two partners.

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Partnership entries and statement of partnership equity The capital accounts of Hassan Khan and Dmitri Palovich have balances of $75,000 and $54,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On July 10, Khan invested an additional $8,000. During the year, Khan and Palovich withdrew $40,000 and $32,000, respectively, and net income for the year was $102,000. Revenues were $523,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income. a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank. BE Journalize the entry to close the drawing accounts. If an amount box does not require an entry, leave it blank. EE b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich. If an amount is zero or a blank, enter in 0. Khan and Palovich Statement of Partnership Equity For the Year Ended December 31, 20Y4 Line…

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Chapter 12, Problem 12.26EX

a. 1

To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

To provide: The journal entries to close the Income Summary and expenses for the two partners.

a. 2

To determine

To provide: The journal entries to close the drawing accounts for the two partners.

b.

To determine

To prepare: The statement of partnership equity for the current year.

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Partnership entries and statement of partnership equity The capital accounts of Hassan Khan and Dmitri Palovich have balances of $75,000 and $54,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On July 10, Khan invested an additional $8,000. During the year, Khan and Palovich withdrew $40,000 and $32,000, respectively, and net income for the year was $102,000. Revenues were $523,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income. a. Journalize the entry to close the revenues and expenses. If an amount box does not require an entry, leave it blank. BE Journalize the entry to close the drawing accounts. If an amount box does not require an entry, leave it blank. EE b. Prepare a statement of partnership equity for the current year for the partnership of Khan and Palovich. If an amount is zero or a blank, enter in 0. Khan and Palovich Statement of Partnership Equity For the Year Ended December 31, 20Y4 Line…

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Partnership Income Allocation—Various OptionsThe January 1, 2017, balance sheet of the partnership of Linda Kingston and Jeannette Allen is shown below. Assets Liabilities and Capital Cash $40,000 Liabilities $120,000 Other assets 360,000 Capital - Kingston 112,000 Capital - Allen 168,000 Total assets $400,000 Total liabilities and capital $400,000 The partnership reported revenues of $160,000 and expenses of $110,000 for 2017. Neither partner withdrew funds from the partnership during the year. Kingston invested $16,000 in the firm on June 28, 2017. Required Compute the December 31, 2017, capital balance for each partner under each of the following assumptions: (a) The partnership agreement does not specify how income is to be divided. Balance at December 31, 2017 Kingston Answer Allen Answer (b) The partnership agreement specifies that Kingston receives 65 percent of income and Allen 35 percent. Balance at December 31, 2017 Kingston…