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At September 30, 2021, C. Saber and J. Wong, the two partners of City Landscaping, had capital account balances of $25,000 each. D. Walker joined
At September 30, 2021, C. Saber and J. Wong, the two partners of City Landscaping, had capital account balances of $25,000 each. D. Walker joined the partnership on September 30, 2021 and received a 1/3 interest in the partnership in exchange for a capital contribution of $40,000. For the year ended September 30, 2022, City Landscaping had profit of $126,000, which is allocated equally to the three partners. Withdrawals during the year were $18,000 each by Saber and Wong, and $14,000 by Walker. Instructions
a) | Record the transaction on September 30, 2021 admitting Walker into the partnership. |
b) | Calculate the balance of each partner's capital account after the transaction. |
c) | Prepare the statement of partners' equity for the year ended September 20, 2022. |
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