On January 1, Tan and Green form a partnership. Tan contributes inventory valued at $90,200 and equipment valued at $120,800 to the partnership. The partnership also accepts Tan's $101,000 long-term note payable associated with the equipment. Green contributes $108,000 cash to the partnership. The partnership agreement states that Green receives an annual salary allowance of $46,000, and both partners get an annual interest allowance of 8% of their initial capital investment. Any remaining income or loss is to be shared equally. On December 18, Tan withdrew $31,000 cash and Green withdrew $38,000 cash. Net income was $95,800 for the first year ended December 31. Enter answers in the tabs below. Required 1 Required 2 Required 3 1. Record the entry for the initial capital investments by Tan. 2. Record the entry for the initial capital investments by Green. 3. Record the entry for the cash withdrawals.
On January 1, Tan and Green form a partnership. Tan contributes inventory valued at $90,200 and equipment valued at $120,800 to the partnership. The partnership also accepts Tan's $101,000 long-term note payable associated with the equipment. Green contributes $108,000 cash to the partnership. The partnership agreement states that Green receives an annual salary allowance of $46,000, and both partners get an annual interest allowance of 8% of their initial capital investment. Any remaining income or loss is to be shared equally. On December 18, Tan withdrew $31,000 cash and Green withdrew $38,000 cash. Net income was $95,800 for the first year ended December 31. Enter answers in the tabs below. Required 1 Required 2 Required 3 1. Record the entry for the initial capital investments by Tan. 2. Record the entry for the initial capital investments by Green. 3. Record the entry for the cash withdrawals.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 33P
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Transcribed Image Text:On January 1, Tan and Green form a partnership. Tan contributes inventory valued at
$90,200 and equipment valued at $120,800 to the partnership. The partnership also
accepts Tan's $101,000 long-term note payable associated with the equipment. Green
contributes $108,000 cash to the partnership. The partnership agreement states that
Green receives an annual salary allowance of $46,000, and both partners get an annual
interest allowance of 8% of their initial capital investment. Any remaining income or loss
is to be shared equally. On December 18, Tan withdrew $31,000 cash and Green
withdrew $38,000 cash. Net income was $95,800 for the first year ended December 31,
Enter answers in the tabs below.
Required 1 Required 2 Required 3
1. Record the entry for the initial capital investments by Tan.
2. Record the entry for the initial capital investments by Green.
3. Record the entry for the cash withdrawals.
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Journal entry worksheet
<
1 2 3
Record the entry for the initial capital investment by Tan.
Note: Enter debits before credits.
Date
January 01
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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