Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Veda Storey and Gordon Rogers have a partnership agreement with the following provisions for sharing profit or loss: Asalary allowance of $29,000 to Storey and

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

Veda Storey and Gordon Rogers have a partnership agreement with the following provisions for sharing profit or loss: Asalary allowance of $29,000 to Storey and $41,000 to Rogers An interest allowance of 6% on capital balances at the beginning of the year 3. The remainder to be divided between Storey and Rogers on a 2-3 basis 1 2 The capital balances on January 1, 2021, for Storey and Rogers were $81,000 and $ 96,000, respectively. For the year ended December 31, 2021, the Carla Vista Partnership had sales of $341,000; cost of goods sold of $251,000; operating expenses of $130,000; V. Storey drawings of $23.900; and G. Rogers drawings of $31.200. Prepare an income statement for Carla Vista Partnership for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) CARLA VISTA PARTNERSHIP Income Statement $ CARLA VISTA PARTNERSHIP Income Statement V Sales Operating Expenses Supplies Expense Cost of Goods Sold Interest Revenue CARLA VISTA PARTNERSHIP Division of Loss V. Storey G. Rogers Tota Loss $ $ $ Salary allowance V. Storey G. Rogers Total Deficiency remaining for allocation Interest allowance V. Storey G. Rogers Total Deficiency remaining for allocation Fixed ratio V. Storey G. Rogers Total Loss remaining for allocation Loss allocated to the partners $ $ CARLA VISTA PARTNERSHIP Statement of Partners' Equity V.Storey G. Rogers Total > $ $ $ Prepare closing entries at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Dec. 31 > (To close revenue account.) Dec 31 (To close drawings accounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (To close revenue account.) Dec. 31 Cost of Goods Sold Operating Expenses Income Summary Cash Sales Dec. 31 (To close Income Summary) Dec. 31 >

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: John Wild, Ken Shaw, Barbara Chiappetta

8th Edition

1264111924, 9781264111923

More Books

Students also viewed these Accounting questions

Question

What are some sources of ethical guidance?

Answered: 1 week ago