Marty Cummerford and Jane Wheeler have formed the MCJW partnership, and have capital balances of $ 65,000 and $ 50,000, respectively on January 1, 2021. On June 1, 2021, Wheeler invested an additional $ 35,000. Also, during the year, Cummerford withdrew $ 30,000 and Wheeler withdrew $ 34,000. Sales for the year amounted to $ 300,000 and expenses were $ 220,000. After taking salary allowances of $ 30,000 and $ 20,000, respectively, Cummerford and Wheeler share any remaining profit and losses on a 3:1 basis.
Instructions
a) Prepare a schedule that shows the division of profit to each partner.
b) Prepare the closing entries at December 31, 2021, for the MCJW partnership.
c) Prepare a statement of partners' equity for 2021.

Question

Quizplus · Accepted Answer

The Answer of Marty Cummerford and Jane Wheeler have formed the MCJW partnership, and have capital balances of $ 65,000 and $ 50,000, respectively on January 1, 2021. On June 1, 2021, Wheeler invested an additional $ 35,000. Also, during the year, Cummerford withdrew $ 30,000 and Wheeler withdrew $ 34,000. Sales for the year amounted to $ 300,000 and expenses were $ 220,000. After taking salary allowances of $ 30,000 and $ 20,000, respectively, Cummerford and Wheeler share any remaining profit and losses on a 3:1 basis.
Instructions
a) Prepare a schedule that shows the division of profit to each partner.
b) Prepare the closing entries at December 31, 2021, for the MCJW partnership.
c) Prepare a statement of partners' equity for 2021.

Marty Cummerford and Jane Wheeler Have Formed the MCJW Partnership