undefined

Anna Hemsley, Laura Laffey and Maddie Longshore, set up a limited liability company at the beginning of 2020. Anna contributed a machine worth $25,000. Laura contributed a van worth $15,000. Maddie contributed $10,000 in cash. The partnership earned a net income of $11,300 for the year. According to the operating agreement, profits are divided in the ratio of members' initial contributions. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Enter the debit accounts in alphabetical order, followed by the credit accounts in alphabetical order. a) Record the entry for the division of the profits on December 31, 2020. Assume that revenues and expenses have already been closed to the income summary account. Date Account Title and Explanation Debit Credit Dec 31 Income Summary 11300 Hemsley, Capital Laffey, Capital X Longshore, Capital To close income summary and update partners' capital accounts b) Assume that instead of a profit, the partnership recorded a loss of $19,000. Record the entry for the division of the loss. Assume that revenues and expenses have already been closed to the income summary account. Date Account Title and Explanation Debit Credit Dec 31 Hemsley, Capital Laffey, Capital Longshore, Capital - Income Summary 19000 To close income summary and update partners' capital accounts