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Question 6 [20 points] On January 20, 2014, George Hemphill and Kimberly Fisher formed a partnership. George Hemphill contributed $140,000 cash and Kimberly Fisher contributed
Question 6 [20 points] On January 20, 2014, George Hemphill and Kimberly Fisher formed a partnership. George Hemphill contributed $140,000 cash and Kimberly Fisher contributed automobiles worth $100,000. Also the partnership assumed Kimberly Fisher's $30,000 long-term note payable associated with the automobiles. The partners agreed to share profits using a 3:2 ratio. On October 10, George Hemphill withdrew $46,000 and Kimberly Fisher withdrew $13,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a debit balance of $74,000. a) Prepare general journal entries for each of the following: 1. To record the initial capital investments of the partners. 2. To record the withdrawals of the partners. 3. The December 31 closing of the income summary account. 4. The December 31 closing of the withdrawals accounts. Enter the numbers above as the explanation, and the dates in the format dd/mmm (ie. 15/Jan). General Journal Page GJ2 Date Account/Explanation F Debit Credit + - + + - b) Enter the balance of the partners' capital accounts as of the end of 2014. Balance of George Hemphill, Capital: Balance of Kimberly Fisher, Capital
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