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On March 15, Roman contributed cash in an amount equal to the current market value of Lee's partnership capital. The partners decided that Lee will
On March 15, Roman contributed cash in an amount equal to the current market value of Lee's partnership capital. The partners decided that Lee will earn 70% of partnership profits because she will manage the business. Roman agreed to accept 30% of the profits. During the period ended December 31, the partnership earned net income of $73,000. Lee's withdrawals were $38,000, and Roman's withdrawings totaled $20,000. Print Done al amounts d Data table Lee's Business Current Market Book Value Value Accounts Receivable $ 12,000 $ 10,300 lect the exp Merchandise Inventory Prepaid Expenses 40,000 38,000 3,100 2,600 Store Equipment, Net Accounts Payable 37,000 29,000 (21,000) (21,000) Date Accounts and Explanation Debit Credit Mar. 15 Store Equipment 29,000 Accounts Receivable 10,300 Merchandise Inventory 38,000 Prepaid Expenses Lee, Capital Accounts Payable To record Lee's contribution. Now journalize the contribution made by Roman. 2,600 58,900 21,000 Date Accounts and Explanation Debit Credit Mar. 15 Roman, Withdrawals Accounts Receivable Cash Roman, Capital To record Roman's contribution. Print Done
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