Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rosie Wilsman and Rosa Escobedo own The Spring Flower Shop. The partnership agreement provides that Wilsman can withdraw $5,000 a month and Escobedo, $4,500 a

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Rosie Wilsman and Rosa Escobedo own The Spring Flower Shop. The partnership agreement provides that Wilsman can withdraw $5,000 a month and Escobedo, $4,500 a month in anticipation of profits. The withdrawals, which are not considered to be salaries, were made each month. Net income and net losses are to be allocated 40 percent to Wilsman and 60 percent to Escobedo. For the year ended December 31, 2019, the partnership earned a net income of $150,000. 1. Prepare general journal entries to: a. Close the income summary account b. Close the partners' drawing accounts. 2. Assume that there was a net loss of $50,000 for the year instead of a profit of $150,000. Give the general journal entries to: a. Close the income summary account. b. Close the partners' drawing accounts. Analyze: Assume the business earned net income of $150,000. If 2019 was the first year of operation, what balance should be reflected for the Rosie Wilsman, Capital account at the end of the year if Wilsman's beginning capital was $110,000? Complete this question by entering your answer in the tabs below. Required 1 Required 2 Analyze Prepare general journal entries to close the Income Summary account and the partners' drawing accounts. View transaction list Journal entry worksheet 1 2 3 Required 1 Required 2 Analyze Prepare general journal entries to close the income Summary account and the partners' drawing accounts. View transaction list K Journal entry worksheet 1 2 2 3 3 > Record the entry to close Income Summary. ces Note: Enter debits before credits General Journal Debit Credit Date Dec 31, 2019 Record entry Clear entry View general Journal Required 1 Required 2 Analyze Prepare general journal entries to close the income Summary account and the partners' drawing accounts. View transaction list Journal entry worksheet Record the entry to close Income Summary. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2019 Record entry Clear entry View general journal Journal entry worksheet Record the entry to close the drawing account for Rosie Wilsman. Note: Enter debits before credits. Date General Journal Dec 31, 2019 Debit Credit Record entry Clear entry View general journal Assume that there was a net loss of $50,000 for the year instead of a profit of $150,000. Give the general journal entries to close the Income Summary account and the partners' drawing accounts. View transaction list Journal entry worksheet 2 3 Record the entry to close the drawing account for Rosa Escobedo. Note: Enter debits before credits Date General Journal Debit Credit Dec 31, 2019 Record entry Clear entry View general Journal Check my work Rosie Wilsman and Rosa Escobedo own The Spring Flower Shop. The partnership agreement provides that Wilsman can withdraw $5,000 a month and Escobedo, $4,500 a month in anticipation of profits. The withdrawals, which are not considered to be salarles, were made each month. Net income and net losses are to be allocated 40 percent to Wilsman and 60 percent to Escobedo. For the year ended December 31, 2019, the partnership earned a net income of $150,000. 1. Prepare general journal entrie to: a. Close the income summary account. b. Close the partners' drawing accounts. 2. Assume that there was a net loss of $50,000 for the year instead of a profit of $150,000. Give the general journal entries to: a. Close the income summary account. b. Close the partners' drawing accounts. Analyze: Assume the business earned net income of $150,000. If 2019 was the first year of operation, what balance should be reflected for the Rosie Wilsman, Capital account at the end of the year if Wilsman's beginning capital was $110,000? Complete this question by entering your answer in the tabs below. Required 1 Required 2 Analyze Assume the business earned net income of $150,000. If 2019 was the first year of operation, what balance should be reflected for the Rosie Wilsman, Capital account at the end of the year if Wilsman's beginning capital was $110,000? Wilsman's, capital account, Dec 31, 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting A Business Perspective

Authors: Roger H. Hermanson, James Don Edwards, Michael W. Maher

7th Edition

0075615851, 978-0075615859

More Books

Students also viewed these Accounting questions