On March 2, 2020, Zoe Moreau, Karen Krneta, and Veronica Visentin start a partnership to operate a personal coaching and lifestyle consulting practice for professional women. Zoe will focus on work-life balance issues, Karen on matters of style, and Veronica on health and fitness. They sign a partnership agreement to split profits in a 3:2:3 ratio for Zoe, Karen, and Veronica, respectively. The following are the transactions for SUNLAND Personal Coaching 2020 Mar. 2 The partners contribute assets to the partnership at the following agreed amounts: Z. Moreau $14,500 K. Krneta $10,200 16,700 V. Visentin $19.800 Cash Furniture Equipment Total 18.950 $33,450 13,650 $33,450 $26,900 They also agree that the partnership will assume responsibility for Karen's note payable of $4,600. Zoe, Karen, and Veronica each withdraw $30,300 cash as a "year-end bonus." No other withdrawals were made during Dec. 20 the year. 31 Total profit for 2020 was $110,000. 2021 Jan. 5 6 Zoe and Veronica approve Karen's request to withdraw from the partnership for personal reasons. They agree to pay Karen $14,900 cash from the partnership Zoe and Veronica agree to change their profit-sharing ratio to 4:5, respectively. Zoe and Veronica withdraw $42.200 and $45,500 cash, respectively, from the partnership. Total profit for 2021 was $123,750. Dec. 20 31 2022 Jan. 4 Zoe and Veronica agree to admit Dela Hirjikaka to the partnership. Dela will focus on providing training in organizational skills to clients. Dela invests $31.150 cash for 25% ownership of the partnership. Acco Record the above transactions. For the profit recognized each year, calculate how it is to be allocated and record the closing of the Income Summary account. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually Qu Aet Account Titles and Explanation Debit Date 2020 Credit AC Mar. 2 > > > (Invest assets in business.) > Mar. 2 1 > (Invest assets in business.) VESTLUSTUST Mar. 2 (Invest assets in business.) Dec. 20 (Record cash drawings.) Dec. 31 > 2021 Jan. 5 > 5
