Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone help me to find out for prepare summary entry. Thank you The partnership of Lau & Min started the fiscal year on January

can someone help me to find out for prepare summary entry. Thank you image text in transcribed
image text in transcribed
The partnership of Lau & Min started the fiscal year on January 1, 2022 with capital balance as follows $41.300 M Min $39.500 Lau & Min had a very disappointing fiscal year ended December 31, 2022 Before closing the income Summary and Drawings accounts, the balance in the Income Summary account was a debit of $50,000. The poor results of the year are due to the recording of a loss from a lawsuit during the year By the end of May, 2022. the partners determined that available cash in the business would be small, so they stopped withdrawing funds. As of May 31, 2022. L. Lau had withdrawn $6,300 and M. Min had withdrawn 58,300. No other withdrawals were made for the remainder of the year. Once the judgement against the partnership was issued, additional cash had to be invested to make a payment on the settlement. On October 15, 2022. Lau and Min each invested $27,000 cash into the partnership The partnership agreement of Lau & Min provides for the division of any profit or loss using the following formular A salary allowance of $26,700 to Lau and $29,200 to Min. An interest allowance of 5% on capital balances at the beginning of the year, 3 The remainder to be divided between Lau & Min on a 3.2 basis. 1 2 1 2 3. A salary allowance of $26,700 to Lau and $29.200 to Min. An interest allowance of 5% on capital balances at the beginning of the year The remainder to be divided between Lau & Min on a 3:2 basis. Prepare a summary entry for the withdrawals taken by the partners to May 31, 2022. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Date 2022 Summary

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren

1st Extended Canadian Edition

1118878418, 9781118878415

More Books

Students also viewed these Accounting questions