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Jim, Jyoti and Joy started a partnership business on Jan 1, 2019. The Net Income...

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Accounting

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Jim, Jyoti and Joy started a partnership business on Jan 1, 2019. The Net Income and Net Loss will be distributed based on capital contribution by each partner. All of them contributed 50,000 in cash. In addition the following assets and liabilities were contributed. All assets are measured at market value. Jim: Land and Building 200,000 (50% Land, 50% Building) Accumulated Depreciation - Building 30,000 Jyoti: Bank Loan (Liability) 25,000 Accounts Receivable 35,000 AFDA 5,000 Joy: Equipment 80,000 Accumulated Depreciation - Equipment 20,000 Net Income in 2019 was 38,500 and in 2020 Net Loss was 84,700. The accounts balances at the beginning of the partnership will be recorded as: The accounts balances at the beginning of the partnership will be recorded as: Jim, Capital 220,000 Jyoti, Capital 55,000 Joy, Capital 110,000 The journal entry at end of 2019 to close the income summary account will be (use rounded whole number Dr. Income Summary : Cr. Jim, Capital 22,000 Cr. Jyoti, Capital 5.500 Cr. Joy, Capital 11,000 + The accounts balances in the end of 2020 will be: Jim, Capital Choose... Jyoti, Capital Choose.... Joy, Capital Choose

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