Horngren’s Accounting, Volume 2, 11th Canadian Edition by Tracie Miller-Nobles Solution manual
Req. 1
General Journal
Date
2020Account Titles and ExplanationsPost. Ref.DebitCredit
Jun.30Revenues 748,000
Income Summary 748,000
To close revenues.
30Income Summary 624,000
Expenses 624,000
To close expenses.
30Income Summary 124,000
K. Santiago, Capital 15,500
R. Astorga, Capital 46,500
J. Camino, Capital 62,000
To close income summary.
30K. Santiago, Capital 126,000
K. Santiago, Withdrawals 126,000
30R. Astorga, Capital 272,000
R. Astorga, Withdrawals 272,000
30J. Camino, Capital 312,000
J. Camino, Withdrawals 312,000
To close partner withdrawal accounts.
Income Summary balance = $748,000 – $624,000 = $124,000
K. Santiago, Capital – $124,000 × 1/8 = $15,500
R. Astorga, Capital – $124,000 × 3/8 = $46,500
J. Camino, Capital – $124,000 × 4/8 = $62,000
(continued) P12-3A
Req. 2
K. Santiago, Capital
Balance152,000
Withdrawals126,000Net income15,500
Ending balance41,500
R. Astorga, Capital
Balance282,000
Withdrawals272,000Net income46,500
Ending balance56,500
J. Camino, Capital
Balance428,000
Withdrawals312,000Net income62,000
Ending balance178,000
(15–20 min.) P12-4A
a
General Journal
DateAccount Titles and ExplanationsPost. Ref.DebitCredit
Jul.31Brian Harmon, Capital 40,000
Bharat Ratta, Capital 40,000
To transfer Harmon’s equity to Ratta.
b.
General Journal
DateAccount Titles and ExplanationsPost. Ref.DebitCredit
Jul.31Cash 30,000
Bharat Ratta, Capital 30,000
To admit Ratta as a partner with a one-quarter interest in the business.
Partnership capital before Ratta is admitted ($20,000 + $30,000 + $40,000) $90,000
Ratta’s investment in the partnership 30,000