Horngren’s Accounting, Volume 2, 11th Canadian Edition by Tracie Miller-Nobles Solution manual
Capital account balances$412,091$ 355,909$ 0$768,000
Req. 1 (40–60 min.) P12-6B
* Payment of $510,000 is first allocated to the account of Sirroca. The difference of $1,593 ($510,000 – $508,909) is split between the remaining partners.
Hodgson: $1,593 × 2/5 = $637
Asham: $1,593 × 3/5 = $956
Req. 1 (continued ) P12-6B
General Journal
DateAccount Titles and ExplanationsPost. Ref.DebitCredit
2017
Jun.10Cash 57,000
Accounts Receivable 63,000
Office Furniture 75,000
Steven Hodgson, Capital 111,000
Sarah Asham, Capital 84,000
Dec.31Income Summary 228,000
Steven Hodgson, Capital 114,000
Sarah Asham, Capital 114,000
2018
Jan.1Cash 210,000
Steven Hodgson, Capital 21,600
Sarah Asham, Capital 21,600
Myra Sirroca, Capital 253,200
Dec.31Income Summary 570,000
Steven Hodgson, Capital 183,680
Sarah Asham, Capital 172,650
Myra Sirroca, Capital 213,670
2019
Oct.10Steven Hodgson, Withdrawals 90,000
Sarah Asham, Withdrawals 60,000
Cash 150,000
Dec.31Steven Hodgson, Capital 90,000
Sarah Asham, Capital 60,000
Steven Hodgson, Withdrawals 90,000
Sarah Asham, Withdrawals 60,000
Income Summary 225,000
Steven Hodgson, Capital 115,648
Sarah Asham, Capital 67,815
Myra Sirroca, Capital 41,537
2020
Jan.02Myra Sirroca, Capital 508,407
Steven Hodgson, Capital 637
Sarah Asham, Capital 956
Cash 510,000
(continued) P12-6B
Req. 2
H&A DISTRIBUTORS
Balance Sheet (partial)
January 2, 2020
Partners’ Equity
Steven Hodgson, Capital$412,091
Sarah Asham, Capital 355,909
Total partners’ equity$768,000
(35–45 min.) P12-7B
Req. 1a
Du, Chong, and Smith
Summary of Liquidation Transactions