1. Shawn, Dan and Mitchell start CableSource partnership on January 1^st. Shawn invests $30000 cash and $10000 of Equipment. Dan and Mitch invest 20000, and $10,000 cash respectively. Income is distribution based on each owners % proportion of capital. Show the journal entry(s).

The journal entry to record the contributions of the partners into the partnership include an increase to the assets invested and an increase to the capital account for the partner that contributed it.

For Shawn:

Cash 30,000

Equipment 10,000

Shawn, Capital Account 40,000

For Dan:

Cash 20,000

Dan, Capital Account 20,000

For Mitchell:

Cash 10,000

Mitchell, Capital Account 10,000

The partners have a total of 40,000 + 20,000 + 10,000 = $70,000 in their capital accounts.

Shawn 40/70 = 57.14%

Dan 20/70 = 28.57%

Mitchell 10/70 = 14.29%

2. On January 30^th Shawn sells half of his partnership interest to Phil for $25,000 cash. Show the entry (s).

Shawn, Capital Account 20,000

Phil, Capital Account 20,000

3. On April 30^th Dan withdraws from the partnership and receives $26,000. Income and loss sharing ratios are equal for all partners. Show the entry (s).

Dan Capital 20,000

Mitchell capital 2,000

Phil capital 2,000

Shawn 2,000

CASH 26,000

4. June 1^st Shawn withdraws $2000 cash.

Shawn Withdrawal 2,000

Cash 2,000

5. December 31^st Net income for the partnership is $60,000. Show me a Partnership Statement of Owners Equity. Show the entry (s) closing out Net Income and the withdrawals account for the partnership . What is each partners ending capital balance? Hint: do percents after the adjustments are made and the withdrawal is after the income is distributed.