Questions by xspencer - Page 21
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 SUNLAND Personal Coaching:2020 Mar. 2 The partners contribute assets to the partnership at the following agreed amounts:Z. Moreau K. Krneta V. VisentinCash $14,900 $10,100 $19,700 Furniture 17,500 Equipment 18,700 13,900 Total $33,600 $27,600 $33,600 They also agree that the partnership will assume responsibility for Karens note payable of $5,200.Dec. 20 Zoe, Karen, and Veronica each withdraw $30,100 cash as a "year-end bonus." No other withdrawals were made during the year.31 Total profit for 2020 was $109,000.2021 Jan. 5 Zoe and Veronica approve Karens request to withdraw from the partnership for personal reasons. They agree to pay Karen $14,850 cash from the partnership.6 Zoe and Veronica agree to change their profit-sharing ratio to 4:5, respectively.Dec. 20 Zoe and Veronica withdraw $42,400 and $45,800 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.
At the end of 2022, the following information is available for Great Adventures.Additional interest for five months needs to be accrued on the $33,000, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31.Assume that $13,000 of the $33,000 loan discussed above is due next year.By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $28,000 during the year and recorded those as Deferred Revenue.Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $15,000.For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $7000.Prepare the Journal Entries for transactions. if no entry is required "no journal entry required'