Question 12-9B

agreed that Sirroca could take cash of $510,000 in exchange for her equity in the partnership Required 1. Journalize all of the transactions for the partnership 2. Prepare the partners' equity section of the balance sheet as of January 2, 2017 Problem 12-9B William Dione, Julie Porter, and Regina Westlake started a partnership to operate a courier service. The partnership (DP&W Couriers) had the following transactions 2015 Jan. 2 Dione, Porter, and Westlake formed the partnership by signing an agreement that stated that all profits would be shared in a 235 ratio and by making the following investments Accounting for partners' invest ments, allocating profits and losses, accounting for the admission of a new partner accounting for the liquidation of a partnership Dione Porter Westlake Cash $12,000 58.000 $14.000 Accounts receivable (net) 20,000 14.500 60,000 Office furniture (net) 0 0 15,000 Vehicles (net) 21.000 38,500 0 Dec. 31 The partnership reported net income of $53,500 for the year. 2016 Jun. 7 Dione and Westlake agreed that Porter could sell her share of the partnership to Ray Ewing for 582.500. The new partners agreed to keep the same profit sharing arrangement (2.3.5 for Dione Ewing-Westlake). Dec 31 The partnership reported a net loss of $67,000 for the year. 2017 Jan 3 The partners agreed to liquidate the partnership. On this date, the balance sheet showed the following items (all accounts have their normal balances): $ 17,500 316,000 22.500 74.500 240.000 49,500 386,500 Cash Accounts receivable Allowance for uncollectible accounts Office furniture Vehicles Accumulated amortization (total) Accounts payable The assets were sold for the following amounts: Accounts receivable Office furniture Vehicles.. Dione and Ewing both have personal assets, but Westlake does not Required Joumalize all of the transactions for the partnership 5190,000 82,500 106,000 CHALLENGE PROBLEMS Problem 12-16 Nancy Wesla and Jordon Dugger have been in a partnership for five years. The principal business of the partnership is systems design for financial institutions. Gross revenues have increased from $330,000 in 2013 to $3.500,000 in 2017, the year just ended. The number of Deciding on a capital structure 12 Chapter 12 Partnerships 723