Jan Penny and Barb Gant have formed the PG Partnership, and have capital balances of $130,000 and $100,000, respectively, on January 1, 2010. On June 1, 2010, Gant invested an additional $30,000. Also during the year, Penny withdrew $60,000 and Gant withdrew $48,000. Sales for the year amounted to $360,000 and expenses were $260,000. Penny and Gant share income and losses on a 3:1 basis.
Instructions
(a) Prepare the closing entries at December 31, 2010, for the PG Partnership.
(b) Prepare a partners' capital statement for 2010.

Question

Quizplus · Accepted Answer

The Answer of Jan Penny and Barb Gant have formed the PG Partnership, and have capital balances of $130,000 and $100,000, respectively, on January 1, 2010. On June 1, 2010, Gant invested an additional $30,000. Also during the year, Penny withdrew $60,000 and Gant withdrew $48,000. Sales for the year amounted to $360,000 and expenses were $260,000. Penny and Gant share income and losses on a 3:1 basis.
Instructions
(a) Prepare the closing entries at December 31, 2010, for the PG Partnership.
(b) Prepare a partners' capital statement for 2010.

Jan Penny and Barb Gant Have Formed the PG Partnership