On August 1, 2010, Wardell Cole and Marva Landers form a partnership. Cole agree

Question

On August 1, 2010, Wardell Cole and Marva Landers form a partnership. Cole agrees to invest $15,600 in cash and merchandise inventory valued at $62,400. Landers invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,000. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow: Landers's Ledger Balance Agreed-Upon Valuation Accounts receivables e 25,300 23,700 Allowance for Doubtful Accounts 1,500 1,900 Equipment 92,300 Less Accumulated depreciation-equipment -35,600 57,900 Accounts payable 20,000 20,000 Notes Payable 30,000 30,000 The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,500 (Cole) and $30,400 (Landers), and the remainder equally. 1. Journalize the entries to record the investments of Cole and Landers in the partnership accounts. If an amount box does not require an entry, leave it blank. 2. Prepare a balance sheet as of August 1, 2010, the date of formation of the partnership of Cole and Landers. Enter all amounts as positive numbers. 3. After adjustments and the closing of revenue and expense accounts at July 31, 2011, the end of the first full year of operations, the income summary account has a credit balance of $100,500, and the drawing accounts have debit balances of $22,500 (Cole) and $30,400 (Landers). Journalize the entries to close the income summary account and the drawing accounts at July 31, 2011. If an amount box does not require an entry, leave it blank. (I JUST NEED HELP WITH NUMBER 3! LET ME SHOW YOU WHAT I PUT) 3. Account Debit Credit Income Summary 100,500 Wardell Cole, Capital 50,250??? Marva Landers, Capital 50,250??? Wardell Cole, Capital 25,000 Marva Landers, Capital 30,400 Wardell Cole, Drawing 25,000 Marva Landers, Drawing 30,400 Under Wardell capital and Marva Landers Capital I put 50,250 for each(50,250X2=100,500), however, my homework keeps telling me that it is incorrect. How do I get those numbers?

Explanation / Answer

Please post the question with figures in a tabular form because the present format confuses with figures. Please rate this answer as lifesaver and repost the question in tabular format. Thank u in advance:)God Bless:)

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