Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer according to format but ignore the filled in answers as they may be incorrect. On March 2, 2023, Zoe Jone, Karen Denner, and
Please answer according to format but ignore the filled in answers as they may be incorrect.
On March 2, 2023, Zoe Jone, Karen Denner, and Veronica Wilson 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 Cullumber Personal Coaching: 5023 Mar. 2 The partners contribute assets to the partnership at the following agreed amounts: They also agree that the partnership will assume responsibility for Karen's note payable of $3,400. Dec. 20 Zoe, Karen, and Veronica each withdraw $20,400 cash as a "year-end bonus." No other withdrawals were made during the year. 31 Total profit for 2023 was $74,800. 2024 Jan. 5 Zoe and Veronica approve Karen's request to withdraw from the partnership for personal reasons. They agree to pay Karen $10,200 cash from the partnership. 6 Zoe and Veronica agree to change their profit-sharing ratio to 4:5, respectively. Dec. 20 Zoe and Veronica withdraw $29,070 and $30,600 cash, respectively, from the partnership. 31 Total profit for 2024 was $84,150. 2025 Jan. 4 Zoe and Veronica agree to admit Dela Taylor to the partnership. Dela will focus on providing training in organizational skills to clients. Dela invests $21,080 cash for 25% ownership of the partnership. Record the above transactions. For the profit recognized each vear. calculate how it is to be allocated and record the closing of the auto lally. List all ?d, se tio Dec. 20 V Z. Jone, Capital K. Denner, Drawings V. Wilson, Drawings Cash (Record cash drawings.) Dec. 31V Income Summary Z. Jone, Capital K. Denner, Capital V. Wilson, Capital (To close Income Summary.) 2024 Jan. 5 Z. Jone, Capital K. Denner, Capital V. Wilson, Capital Cash Cash (To record withdrawal of partner.) 20400 20400 20400 28050 18700 28050 1530 10200 ( lo record admission of partner.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started