Horngren’s Accounting, Volume 2, 11th Canadian Edition by Tracie Miller-Nobles Solution manual

General Journal
Date
2020Account Titles and ExplanationsPost. Ref.DebitCredit
Dec.31Karen Tenne, Capital 248,000 
  Frank Durn, Capital 6,857 
  Erin Hana, Capital 5,143 
       Cash  260,000
  To record withdrawal of Tenne from the partnership. Durn has 4/7 of $12,000 and Hana has 3/7 of $12,000.   
 
d.                                                                                                                    
General Journal
Date
2020Account Titles and ExplanationsPost. Ref.DebitCredit
Dec.31Equipment 220,000 
       Karen Tenne, Capital  66,000
       Frank Durn, Capital  88,000
       Erin Hana, Capital  66,000
  To revalue the equipment and allocate the gain in value to the partners.   
      
Dec.31Karen Tenne, Capital 314,000 
       Cash  44,000
       Inventory  270,000
  To record withdrawal of Tenne from the partnership. ($248,000 + $66,000)   
 
Equipment: $548,000 – $328,000 = $220,000
Karen Tenne, Capital $220,000 × 0.30 = $66,000
Frank Durn, Capital $220,000 × 0.40 = $88,000
Erin Hana, Capital $220,000 × 0.30 = $66,000

 
Req. 1                                                              (40–60 min.) P12-6A
Date DescriptionBucknerKwanNguenTransaction Total
2017     
Jun.    10Start-up$  84,00081,000 $   165,000
Dec.   31Net income  97,500   97,500     195,000
 Capital account balances181,500178,500 360,000
2018     
Jan.      1New partner    9,000     9,000    162,000    180,000
 Capital account balances190,500 187,500    162,000  540,000
Dec.   31Net income, allocated as:    
 Service90,000120,00075,000285,000
 Interest9,5259,3758,10027,000
 Balance 50,400   33,600    84,000    168,000
 Total income allocated149,925 162,975    167,100    480,000
      
 Capital account balances340,425350,475329,1001,020,000
2019     
Oct.    10Withdrawals (84,000) (57,000)                    (141,000)
 Capital account balances256,425293,475329,100879,000
Dec.   31Net income allocated as:    
 Service90,000120,00075,000285,000
 Interest12,82114,67416,45543,950
 Balance (22,185)  (14,790)  (36,975)    (73,950)
 Total income allocated  80,636 119,884     54,480    255,000
 Capital account balances337,061413,359383,5801,134,000
2020     
Jan.     2Partner withdrawal   50,148   33,432  (383,580) (300,000)
 Capital account balances$387,209$446,791$             0$ 834,000

 
 
 
 

Req. 1                                               (continued) P12-6A