Marty Cummerford and Jane Wheeler have formed the MCJW partnership, and have capital balances of $65,000 and $50,000 respectively on January 1, 2013. On June 1, 2013, 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, 2013, for the MCJW partnership.
c. Prepare a statement of partners' equity for 2013.

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, 2013. On June 1, 2013, 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, 2013, for the MCJW partnership.
c. Prepare a statement of partners' equity for 2013.

Marty Cummerford and Jane Wheeler Have Formed the MCJW Partnership