The capital accounts of Gary Menendez and Melissa Breeden have balances of $85,000 and $60,000, respectively, on
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The capital accounts of Gary Menendez and Melissa Breeden have balances of $85,000 and $60,000, respectively, on January 1, 2014, the beginning of the current fiscal year. On April 10, Menendez invested an additional $9,000. During the year, Menendez and Breeden withdrew $44,000 and $35,000 respectively, and net income for the year was $114,000. The articles of partnership make no reference to the division of net income.
a. Journalize the entries to close
(1) The income summary account and
(2) The drawing accounts.
b. Prepare a statement of partners' equity for the current year for the partnership of Menendez and Breeden.
PartnershipA legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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a Journalize the entries to close 1 The income summary account and 2 The drawing accounts Income Sum...View the full answer
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