Horngren’s Accounting, Volume 2, 11th Canadian Edition by Tracie Miller-Nobles Solution manual
c.
General Journal
Date
2020Account Titles and ExplanationsPost. Ref.DebitCredit
Dec.31Sam Seamus, Capital 210,000
Katherine Depatie, Capital 42,000
Emily Hudson, Capital 84,000
Cash 336,000
To record withdrawal of Seamus from the partnership.
Depatie: $126,000 × 0.20/0.60 = $42,000
Hudson: $126,000 × 0.40/0.60 = $84,000
d. (continued) P12-5B
General Journal
Date
2020Account Titles and ExplanationsPost. Ref.DebitCredit
Dec.31Katherine Depatie, Capital 25,200
Sam Seamus, Capital 50,400
Emily Hudson, Capital 50,400
Building 126,000
To revalue the building and allocate the loss in value to the partners.
Dec.31Sam Seamus, Capital 159,600
Cash 82,000
Note Payable to Seamus 77,600
To record withdrawal of Seamus from the partnership. ($210,000 – $50,400)
Building loss: $808,000 – $682,000 = $126,000
Depatie: $126,000 × 0.20 = $25,200
Seamus: $126,000 × 0.40 = $50,400
Hudson: $126,000 × 0.40 = $50,400
Date DescriptionHodgsonAshamSirrocaTransaction Total
2017
Jun. 10Start-up$111,000 $ 84,000 $195,000
Dec. 31Net income114,000 114,000 228,000
Capital account balances225,000 198,000 423,000
2018
Jan. 01New partner (21,600) (21,600) 253,200 210,000
Capital account balances 203,400 176,400 253,200 633,000
Dec. 31Net income, allocated as:
Service120,000 90,000 80,000290,000
Interest20,340 17,640 25,32063,300
Balance43,340 65,010 108,350216,700
Total income allocated183,680 172,650 213,670570,000
Capital account balances387,080 349,050 466,870 1,203,000
2019
Oct. 10Withdrawals (90,000)(60,000)_______(150,000)
Capital account balances297,080 289,050 466,870 1,053,000
Dec. 31
Net income
Service120,000 90,00080,000290,000
Interest29,708 28,90546,687105,300
Balance(34,060)(51,090)(85,150) (170,300)
Total Income Allocated115,648 67,81541,537225,000
Capital account balances412,728 356,865508,4071,278,000
2020
Jan. 02Partner withdrawal* (637) (956)(508,407)(510,000)