Problem 11-6A Partnership entries, profit allocation, admission of a partner LO2, 3, 4 On June 1, 2020, Jill Bow and Ais

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Problem 11 6a Partnership Entries Profit Allocation Admission Of A Partner Lo2 3 4 On June 1 2020 Jill Bow And Ais 1 (21.08 KiB) Viewed 11 times

Problem 11-6A Partnership entries, profit allocation, admission of a partner LO2, 3, 4 On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $290,000 cash and $380,000 of equipment, respectively. The partnership also assumed responsibility for a $50,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $160,000, both are to receive an annual interest allowance of 10% of their original capital investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $110.000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $480.000. On June 1, 2021, Peter Williams Invested $130,000 and was admitted to the partnership for a 20% interest in equity. Required: 1. Prepare journal entries for the following dates.. a. June 1, 2020