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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
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 ORIOLE Personal Coaching 2020 Mar. 2 The partners contribute assets to the partnership at the following agreed amounts: Cash Z. Moreau $15,100 K. Krneta $10,600 17.500 V. Visentin $19,500 Furniture Equipment Total 19,550 $34,650 15,150 $34,650 $28,100 They also agree that the partnership will assume responsibility for Karen's note payable of $5,000. Dec. 20 31 Zoe, Karen, and Veronica each withdraw $29.800 cash as a "year-end bonus." No other withdrawals were made during the year Total profit for 2020 was $110.000. 2021 Jan. 5 Zoe and Veronica approve Karen's request to withdraw from the partnership for personal reasons. They agree to pay Karen $16,200 cash from the partnership Zoe and Veronica agree to change their profit-sharing ratio to 4:5, respectively. Zoe and Veronica withdraw $42.400 and $45.400 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 $31,350 cash for 25% ownership of the partnership. Date Account Titles and Explanation Debit Credit 2020 Mar. 2 (Invest assets in business.) Mar. 2 (Invest assets in business. Mar. 2
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