On April 1, 2019, Guy Comeau and Amelie Lavoi formed a partnership in Ontario.

Net Income during the year was $560,000 and was in the Income Summary account.

On April 1, 2020 Travis Roberts invested $138,000 and was admitted to the partnership for a 20% interest in equity.

Required

1. Prepare journal entries for the following dates:

a. April 1, 2019

b. March 20, 2020

c. March 31, 2020

d. April 1, 2020

2. Calculate the balance in each partner?s capital account immediately after the April 1, 2020, entry.

Transcribed Image Text:

Comeau $298,000 cash Lavol $200,000 land $138,000 building Contribution Profit sharing $168,000 salary allowance 5% of original capital investments 40% of remaining 5% of original capital investments 60% of remaining Cash withdrawal March 20, 2020 $118,000