Partnership Formation

Adjustments
C's Book

C's Capital 8,000.00

Allowance for Uncollectible Accounts 8,000.00

Inventories 10,000.00
C's Capital 10,000.00

Land 41,379.31
Accumulated Depreciation – Building 9,000.00
Building 9,620.69
C's Capital 60,000.00

Accumulated Depreciation - Equipment 8,000.00

Equipment 3,000.00
C's Capital 5,000.00

Closing Entries
Accounts Payable 95,000.00
Allowance for Uncollectible Accounts 8,000.00
C's Capital 592,000.00
Cash 70,000.00
Accounts Receivable 80,000.00
Inventories 100,000.00
Land 241,379.31
Building 108,620.69
Equipment 95,000.00

Parnership Books

Cash 70,000.00
Cash 444,000.00
Cash 222,000.00
Accounts Receivable 80,000.00
Allowance for Uncollectible Accounts 8,000.00
Inventories 100,000.00
Land 241,379.31
Building 108,620.69
Equipment 95,000.00
Accounts Payable 95,000.00
C's Capital 592,000.00
B's Capital 444,000.00
A's Capital 222,000.00
Partnership Operation

Service Fees 1,000,000.00

Cost of Services 500,000.00
Depreciation Expense 15,000.00
Operating Expense 100,000.00
Income and Expense Summary Account 385,000.00

X1 X2 X3
Salaries 88,846.15
Interest 15%
x1 82,500.00
x2 101,250.00
x3 112,500.00
subtotal
Remaining
No Bonus
(96.15) 1/ 4 (24.04)
7/20 (33.65)
2/ 5 (38.46)
subtotal
Total 171,322.12 101,216.35 112,461.54

Income and Expense Summary Account 385,000.00

X1, Drawings 171,322.12
X2, Drawings 101,216.35
X3, Drawings 112,461.54

XXX and Co.

Trial Balance
For the month ended January 31, 2017
Debit Credit
Cash 1,569,000.00
Accounts Receivable 50,000.00
Office Supplies 10,000.00
Land 500,000.00
Building 300,000.00
Accumulated Depreciation 15,000.00
Accounts Payable 85,000.00
X1, Drawings 169,322.12
X2, Drawings 99,216.35
X3, Drawings 110,461.54
X1, Capital 600,000.00
X2, Capital 650,000.00
X3, Capital 700,000.00
Total 2,429,000.00 2,429,000.00
-

or

XXX and Co.

Trial Balance
For the month ended January 31, 2017
Debit Credit
Cash 1,569,000.00
Accounts Receivable 50,000.00
Office Supplies 10,000.00
Land 500,000.00
Building 300,000.00
Accumulated Depreciation 15,000.00
Accounts Payable 85,000.00
X1, Capital 769,322.12
X2, Capital 749,216.35
X3, Capital 810,461.54
Total 2,429,000.00 2,429,000.00
Total
88,846.15

296,250.00

(96.15)
385,000.00