1)Shawn, Dan and Mitchell start CableSource partnership on January 1^st.Shawn invests $30000 cash and $10000 of Equipment.Dan and Mitch invest 20000, and $10,000 cash respectively.Income is distribution based on each owners % proportion of capital.Show the journal entry(s).

The journal entry to record the contributions of the partners into the partnership include an increase to the assets invested and an increase to the capital account for the partner that contributed it.

For Shawn:

Cash30,000

Equipment10,000

Shawn, Capital Account40,000

For Dan:

Cash20,000

Dan, Capital Account20,000

For Mitchell:

Cash10,000

Mitchell, Capital Account10,000

The partners have a total of 40,000 + 20,000 + 10,000 = $70,000 in their capital accounts.

Shawn 40/70 = 57.14%

Dan 20/70 = 28.57%

Mitchell 10/70 = 14.29%

2)On January 30^th Shawn sells half of his partnership interest to Phil for $25,000 cash.Show the entry (s).

Shawn, Capital Account20,000

Phil, Capital Account20,000

3)On April 30^th Dan withdraws from the partnership and receives $26,000.Income and loss sharing ratio's are equal for all partners.Show the entry (s).

Dan Capital20,000

Mitchell capital2,000

Phil capital2,000

Shawn 2,000

CASH26,000

4)June 1^st Shawn withdraws $2000 cash.

Shawn Withdrawal2,000

Cash2,000

5)December 31^st Net income for the partnership is $60,000.Show me a Partnership Statement of Owners Equity.Show the entry (s) closing out Net Income and the withdrawals account for the partnership .What is each partners ending capital balance?

Hint: do the percents after the adjustments are made and the withdrawal is after the income is distributed