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P12-2A

Instructions the transfer of each proprietorship's assets (a) Sorensen, Capital $40.000 (a) Prepare separate journal entries to record Lucas, Capital $23,000 and liabilities to the partnership. (b) Journalize the additional cash investment by each partner (c) Prepare a classified balance sheet for the partnership on January 1, 2017. (c) Total assets $173,000 Journalize divisions of P12-2A At the end of its first year of operations on December 31, 2017, NBS Company's net income and prepare a accounts show the following partners capital statement. (LO 2) Partner Drawings Capital $23,000 $48,000 Art Niensted Greg Bolen 14,000 10,000 30,000 25,000 Krista Sayler The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2017 has not been closed to the partners' capital accounts. Instructions (a) Journalize the entry to record the division of net income for the year 2017 under each of the following independent assumptions. (1) Net income is $30,000. Income is shared 6:3:1. (2) Net income is $40,000. Niensted and Bolen are given (a) (1) Niensted $18,000 (2) Niensted $20,000 salary allowances of $15,000 and $10,000, respectively. The remainder is shared equally. (3) Niensted $17,700 (3) Net income is $19,000. Each partner is allowed interest of 10% on beginning capi balances. Niensted is given a $15,000 salary allowance. The remainder is s equally hared (b) Prepare a schedule showing the division of net income under assumption (3) above. (c) Prepare a partners' capital statement for the year under assumption (3) above. (c) Niensted $42,700

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