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Jones and Drayton decided to form a partnership. Jones contributed equipment (book value $75,000), inventory (paid $32,000), and $24,000 cash. The equipment and inventory have
Jones and Drayton decided to form a partnership. Jones contributed equipment (book value $75,000), inventory (paid $32,000), and $24,000 cash. The equipment and inventory have a current market value of $58,000 and $24,000, respectively. Jones also had a debt of $29,000 for the equipment. Drayton contributed office equipment (book value $32,000) and cash of $68,000. The current market value of the office equipment is $16,000. The two partners fail to agree on a profit-and-loss-sharing ratio. For the first month (June), the partnership lost $4,500. 1. How much of this loss goes to Jones? How much goes to Drayton? 2. The partners withdrew no assets during June. What is each partner's Capital balance at June 30? Prepare a T-account for each partner's Capital. 1. How much of this loss goes to Jones? How much goes to Drayton? Jones's $ Drayton's $ 2. The partners withdrew no assets during June. What is each partner's Capital balance at June 30? Prepare a T-account for each partner's Capital. (Leave any unused cells blank.) Jones, Capital Drayton, Capital
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