2014

Jun. 10 Adam Buckner and Amber Kwan have agreed to pool their assets and form a partnership to be called B&K Consulting. They agree to share all profits equally and make the following initial investments:

Dec. 31 The partnership's reported net income was $195,000 for the year ended December 31, 2014.
2015
Jan. 1 Buckner and Kwan agree to accept Heidi Nguen into the partnership with a $180,000 investment for 30 percent of the business. The partnership agreement is amended to provide for the following sharing of profits and losses:

Dec. 31 The partnership's reported net income was $480,000.
2016
Oct. 10 Buckner withdrew $84,000 cash from the partnership and Kwan withdrew $57,000 (Nguen did not make any withdrawals).
Dec. 31 The partnership's reported net income was $255,000.
2017
Jan. 2 After a disagreement as to the direction in which the partnership should be moving, Nguen decided to withdraw from the partnership. The three partners agreed that Nguen could take cash of $300,000 in exchange for her equity in the partnership.
Required
1. Journalize all of the transactions for the partnership.
2. Prepare the partners' equity section of the B&K Consulting balance sheet as of January 2, 2017.

Transcribed Image Text:

Cash. Accounts receivable (net. Office furniture. Buckner $15,000 33,000 36,000 Kwan $30,000 27,000 24,000 Buckner Nguen $90,000 $%120,000 $75,000 5% Kwan Interest on capital balance.. Balance in ratio of. 5% 5% 3: