The partnership of Lau & Ministarted the fiscal year on January 1, 2022 with capital balances as follows: L.1533.700 and M. Miri $33,200 Lau & Min had a very disappointing fiscal year ended December 31, 2022. Before closing the Income Surnary and Drwin accounts, the balance in the Income Summary account was a debit of $44.000. The poor results of the year are due to the recording of a loss from a lawsuit during the year By the end of May, 2022, the partners determined that available cash in the business would be seat so they stopped withdrawing funds. As of May 31, 2022. L. Lau had withdrawn 56,700 and M. Min had withdrawn $8,700. No other withdrawals were made for the remainder of the year. Once the judgement against the partnership was issued additional cash had to be invested to make a payment on the settlement on October 15, 2022. Lau and Min each invested $24.000 cash into the partnership, The partnership agreement of Lau & Min provides for the division of any proht or loss using the following formula 1 Asalary allowance of $20.500 to Land $22.800 to Min An interest allowance of 5% on capital balances at the beginning of the year ENG PM The partnership agreement of Lau & Min provides for the division of any profit or loss using the following formula: 1 A salary allowance of $20,500 to Lau and $22,800 to Min. An interest allowance of 5% on capital balances at the beginning of the year. 2. 3 The remainder to be divided between Lau & Min on a 3:2 basis. Prepare the entry on October 15, 2022 to record the additional investments by the partners. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Oct. 15, 2022 Prepare a schedule to show how the profit or loss will be allocated to the two partners LAUG MIN Division of Loss Year Ended December 31, 2022 Lilou M. Min Tot Loss Salary allowance L. Lau M. Min Total -7253 L. Lau Loss M. Min Tot $ Salary allowance L. Lau M. Min Total Deficiency remaining for allocation Interest allowance L. Lau 25 M. Min Total Deficiency remaining for allocation Fixed ratio L. Lau M. Min Total Loss remaining for allocation -125 Loss remaining for allocation Loss allocated to the partners Question Part Score Prepare a statement of partners' equity for the year (List Items that increase partner's equity first.) O 01:11: Prepare a statement of partners equity for the year (List items that increase partner's equity first.) 125 E LAU & MIN Statement of Partners' Equity Year Ended December 31, 2022 M. Min L. Lau I Total $ -125 E L Lau M. Min Total I Prepare the remaining closing entries on December 31, 2022. (Credit account titles are automatically indented when the amount entered. Do not indent manually) Date Account Titles and Explanation Debit Dec 31, 2022 Credit (To close profit/loss to capital accounts) Dec 31, 2022 (To dose profit/loss to capital accounts) -725 ini Dec 31, 2022 (To close drawings account of partners) Inn Dart Score
