ASSETS INCREASE: DEBIT DECREASE: CREDIT LIABILITIES INCREASE: CREDIT DECREASE: DEBIT OWNER'S EQUITY INCREASE: CREDIT DECREASE: DEBIT CR TRANSACTIONS-ANALYZE EACH ONE AND INSERT THE ENTRIES. Place entries in the GREEN areas only. Balances are calculated automatically CLARK AND LODGE LAW PARTNERS 1 Clark invested cash of $90,000 in the partnership 101 CASH 201 ACCTS PAYABLE 302 CLARK DRAWING 301 CLARK CAPITAL 2 Lodge invested $50,000 cash in the partnership. 304 LODGE DRAWING 303 LODGE CAPITAL PARTNERSHIP ENTRIES Make envies only in the green areas.balances are automated DR 101 CASH 104 ACCTS RECEIVABLE 106 SUPPLIES 110 EQUIPMENT 112 ACC. DEPR. EQUIP. 201 ACCTS PAYABLE 301 CLARK CAPITAL 302 CLARK DRAWING 303 LODGE CAPITAL 304 LODGE DRAWING 401 SERVICE REVENUE 501 RENT EXPENSE 503 ADVERT. EXPENSE 504 SALARY EXPENSE 509 DEPR. EXPENSE 510 SUPPLIES EXPENSE TOTALS 0 In Balance? DRECR? YES 3 Lodge contributed equipment to the partnership with original cost of $24,000 and current market value of $18,000. 104 ACCTS RECEIVABLE 3 Supplies were purchased for $4,000, on account. 4 The company paid rent in the amount of $3,000. OPERATIONS 501 RENT EXPENSE 401 SERVICE REVENUE 106 SUPPLIES 5 Advertising was purchased on account, $5,000. 6 Salaries were paid to employees in cash, $15,000. O 503 ADVERT. EXPENSE 7 The company provided $34,000 of services; $6,000 was received in cash and the rest will be received in 30 days. 110 EQUIPMENT 8 The company paid $3,500 cash on account. 504 SALARY EXPENSE 9 The company received $9,000 cash from customers, on account. 112 ACC. DEPR. EQUIP 10 Depreciation was recorded in the amount of $1,800. (Adj.) 11 Supplies used up amounted to $2,100. 9 509 DEPR. EXPENSE 11 Clark withdrew $2,500 cash from the business. 12 Lodge withdrew $1,500 cash from the partnership. 510 SUPPLIES EXPENSE 11 Closing the accounts: Debit the revenue for its balance. Credit the expenses, each for its balance. Credit the partners' capital accounts each for 1/2 of the remainder (net income) Note: the partners split net income 50:50 12 Debit each partner's capital for their drawing amount; credit the partners drawings