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P12.13A (LO 2, 3, 4, 5, 6) AP On March 2, 2020, Zoe Moreau, Karen Krneta, and Veronica Visentin start a partnership to operate a personal coaching and lifestyle consulting practice for professional women. Zoe will focus on work-life balance issues, Karen on matters of style, and Veronica on health and fitness. They sign a partnership agreement to split profits in a 3:2:3 ratio for Zoe, Karen, and Veronica, respectively. The following are the transactions for MKV Personal Coaching: Account for formation of a partnership, allocation of profits, and withdrawal and admission of partners, prepare partial balance sheet. 2020 Mar. 2 The partners contribute assets to the partnership at the following agreed amounts: Z. Moreau K. Krneta V. Visentin Cash $15,000 $10,000 $20,000 Furniture 17,000 Equipment 18.000 13,000 Total $33,000 $27,000 $33,000 They also agree that the partnership will assume responsibility for Karen's note payable of $5,000. Dec. 20 Zoe, Karen, and Veronica each withdraw $30,000 cash as a year-end bonus." No other withdrawals were made during the year. 31 Total profit for 2020 was $110,000. 2021 5 Zoe and Veronica approve Karen's request to withdraw from the partnership for personal reasons. They agree to pay Karen $15,000 cash from the partnership. 6 Zoe und Veronica agree to change their profit-sharing ratio to 4:5, respectively. Dec. 20 Zoe and Veronica withdraw $42,750 and $45,000 cash, respectively, from the partnership. 31 Total profit for 2021 was $123.750. 2022 Jan. 4 Zoe and Veronica agree to admit Dela Hirjikaka to the partnership. Dela will focus on providing training in organizational skills to clients. Dela invests $31,000 cash for 25% ownership of the partnership Instructions a. Record the above transactions. For the profit recognized each year, calculate how it is to be allocated and record the closing of the Income Summary account. b. Prepare the partners' equity section of the balance sheet after Dela is admitted to the partnership. Taking It Further Every time a new partner is admitted to a partnership or a partner withdraws from a partnership, it is necessary to completely close the accounting records of the existing partnership and start new accounting records for the new partnershin. Do vou tee or disseree? Explain

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