JOURNAL ENTRIES

19. Curly, Larry and Moe formed a partnership that provides residential plumbing services. The business has a December 31 year end. At the beginning of the year, the opening balance in Curly's capital account was $188,500, Larry's opening capital balance was $377,000 and Moe's opening capital balance was $282,750. The business reported a net 20. Brown Company is having difficult paying off their suppliers. Fortunately, one of their income of $495,500. Their partnership agreement provided for sharing of net income (loss) suppliers has agreed to convert the amounts owing into a note payable. The note payable is on the following basis: issued on June 1, 2020 for an amount of $58,000, and is due 12 months from now with an 1. Salary allocation of $101,300 to Curly, $79,400 to Larry and $79,000 to Moe interest rate of 3% per year. Brown Inc. has a December 31 year-end. 2. Remainder shared where Curly gets 15%, Larry gets 40% and Moe gets 45%. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole dollar. Prepare a table showing changes in the partners' capital during the year. For transactions with more than one debit, enter the accounts in alphabetical order. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit Do not enter use the negative sign in your answers. Jun 1 Round your answers to the nearest whole number. Answerl Answerl Answerl Answerl Total Curly Larry Moe To convert accounts payable to a note Net Income Answer Dec 31 Answerl Answerl Salaries Answer Answer Answer Answer Answer Answer To record interest accrued Remainder Answer May 31 Answerl Answer Share of remainder Answer Answer Answer Answer Answerl Answerl Answer Answerl Transferred to partner's Answer Answer Answer capital Answerl Answerl To record the payment of note payable b) Prepare the journal entry to record the distribution of net income. Assume revenues and expenses have been closed to the income summary account. Date Account Title and Explanation Debit Credit Dec 31 Answer Answerl Answer Answer Answer Answer Answer Answer Allocate income to partners