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The partnership of Robinson & Garcia started the fiscal year on January 1 , 2 0 2 5 , with capital balances as follows: L

The partnership of Robinson & Garcia started the fiscal year on January 1,2025, with capital balances as follows: L. Robinson $44,000 and M. Garcia $41,600.Robinson & Garcia had a very disappointing fiscal year ended December 31,2025. Before closing the Income Summary and Drawings accounts, the balance in the Income Summary account was a debit of $54,180. 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 2025, the partners determined that available cash in the business would be small, so they stopped withdrawing funds. As of May 31,2025, L. Robinson had withdrawn $7,560 and M. Garcia had withdrawn $10,080. 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 15,2025, Robinson and Garcia each invested $25,200 cash into the partnership.The partnership agreement of Robinson & Garcia provides for the division of any profit or loss using the following formula:1.A salary allowance of $25,200 to Robinson and $27,720 to Garcia.2.An interest allowance of 5% on capital balances at the beginning of the year.3.The remainder to be divided between Robinson & Garcia on a 3:2 basis.Prepare a summary entry for the withdrawals taken by the partners to May 31,2025.Summary l.robinson drawing dr 7560,garsia drawing dr 10080cash cr 17640Prepare the entry on October 15,2025, to record the additional investments by the partners2025Oct. 15Dr cash 50400Cr L robinson capital 25200Cr gasia capital 22500Prepare a schedule to show how the profit or loss will be allocated to the two partners
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