COMPREHENSIVE QUIZ II_Before Final Exam_29 Juni 2016_TYPE A

Short essay matt baines and dave bristow form a

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SHORT ESSAY Matt Baines and Dave Bristow form a partnership, investing $80,000 and $140,000 respectively. Net income is $250,000 and the partnership agreement states that the partnersshare profits and losses based on their capital contributions. Matt Baines withdrew cash of $120,000 for personal use, and Dave Bristow withdrew cash of $95,000 during the year. Required: A) Determine their shares of net income above for each of partner. B) Using the data from situation above, journalize the entries to close to each capital account the: (1) income summary account, and (2 ) the partners’ withdrawal accounts. Explanations are not required. C) Indicate the amount of increase or decrease in each partner’s capital balance . What was the overall effect on partnership capital?
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