Business
Fundamental Accounting Principles
On July 1, 2019, Alleya Amrick and Breanne Balas formed

On July 1, 2019, Alleya Amrick and Breanne Balas formed a partnership to make crafts and sell

Question:

On July 1, 2019, Alleya Amrick and Breanne Balas formed a partnership to make crafts and sell them online.

Net Income during the year was $410,000 and was in the Income Summary account.

On July 1, 2020 Calla Cameron invested $123,000 and was admitted to the partnership for a 20% interest in equity.

Required

1. Prepare journal entries for the following dates:

a. July 1, 2019

b. June 20, 2020

c. June 30, 2020

d. July 1, 2020

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

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...

Transcribed Image Text:

Amrick Balas $100,000 cash $183,000 equipment $50,000 cash $100,000 land $173,000 building Contribution Profit sharing $153,000 salary allowance 10% of original capital investments Balance 40% 10% of original capital investments Balance 60% Cash withdrawal June 20, 2020 $103,000

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Part 1 a 2019 July 1 Cash 283000 Equipment 366000 AlleyaAmrick Capital 283000 Breanne Balas Capital ...View the full answer

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Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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Question Posted: Dec 13, 2019 09:44 AM

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