Question

On April 1, 2019, Guy Comeau and Amelle Lavol formed a partnership in Ontarlo. Contribution Profit sharing Comeau Lavoi $321,800 cash $22e, eee land $140, see building $161,300 salary allowance 5% of original 5% of original capital investments capital investments 40% of remaining 60% of remaining $122,700 Cash withdrawal March 20, 2020 Net Income during the year was $616,000 and was in the Income Summary account. On April 1, 2020 Travis Roberts Invested $131,100 and was admitted to the partnership for a 20% Interest in equity. Required: 1. Prepare journal entries for the following dates. a. April 1, 2019 View transaction list Journal entry worksheet < 1 > Record the formation of partnership. Note: Enter debits before credits. Date General Journal Debit Credit April 01, 2019 Record entry Clear entry View general journal

Answer 1

Workings Comeau Net Income before distributions Less Partners' salary Less Interest on capital $ $ Sub-total Balance Profit to be shared $ $ 161,300 16,090 $ (321800*5%) 177,390 $ 168,228 $ (420570*40%) 345,618 $ 321,800 $ Lavoi Total $ 616,000 $ (161,300) 18,040 $ (34,130) (360800*5%) 18,040 $ 420,570 252,342 $ (420,570) (420570*60%) 270,382 $ 616,000 360,800 $ 682,600 (220000+140800) (122,700) $ (122,700) 508,482 $ 1,175,900 Total Distributions to Partners Add Beginning Capital $ $ Less Capital withdrawn Ending Capital $ 667,418 $ $ Total Capital of partner's before admission Add Investment made by Robert Total Capital of Partner's after admission Share of Robert Less Cash Invested Loss borne by old partner's in 40:60 ratio $ $ $ $ $ $ 1,175,900 131,100 1,307,000 261,400 (131,100) 130,300 (1307000*20%) Requirement a Credit Date General Journal 01-Apr-19 Cash Land Building Comeau's Capital Lavoi's Capital (To record formation of partnership) $ $ $ Debit 321,800 220,000 140,800 $ $ 321,800 360,800

Requirement b Credit Debit 122,700 $ Date General Journal 20-Mar-20 Lavoi's Capital Cash (To record the withdrawal by partner) $ $ 122,700 Requirement c Credit Debit 560,000 $ Date General Journal 31-Mar-20 Income Summary Comeau's Capital Lavoi's Capital (To record closing of profit to capital) $ $ 326,980 233,020 Requirement d Credit $ Date General Journal 01-Apr-20 Cash Comeau's Capital (130300*40%) Lavoi's Capital (130300*60%) Robert's Capital (To record admission of Robert) Debit 131,100 52,120 78,180 $ $ $ 261,400 Requirement 2 Robert Capital Balance before admission Adjustment for admission of Robert Capital Balance after admission Total $ $ $ Comeau 667,418 $ (52,120) $ 615,298 $ Lavoi 508,482 (78,180) $ 430,302 $ $ 261,400 261,400 1,307,000