Lewis Wardell and Lewis Lomas own Lewis\' Antiques. Their pa for Wardell and $78

Question

Lewis Wardell and Lewis Lomas own Lewis' Antiques. Their pa for Wardell and $78,000 for Lomas, and interest of 10 percent on ea remainder of the net income or loss is to be distributed 40 percent to Wardell and 60 percent to Lomas. The partners withdraw their salary allowances monthly. On January 1, 2019, the capital account balances were Wardell, $380,000, and Lomas, $340,000. On December 15, 2019, Lomas made a permanent withdrawal of $98,000. The net income for 2019 was $300,000. p agreement provides for annual salary allowances of $88,000 ch partner's invested capital at the beginning of the year. The 1. Prepare the general journal entry on December 15, 2019, to record the permanent withdrawal by Lomas 2 Prepare the general journal entries on December 31, 2019, to a. Record the salary allowances for the year. b. Record the interest allowances for the year. c. Record the division of the balance of net income d. Close the drawing accounts into the capital accounts, assuming that Wardell and Lomas have withdrawn their full salary allowances. income statement for 2019 3. Prepare a schedule showing the division of net income to the partners as it would appear on the 4. Prepare a statement of partners' equities showing the changes that took place in the partners Analyze By what percentage did Wardell's capital account increase in the fiscal year 2019? Complete this question by entering your answer in the tabs below. o2 6beatsoudo

Explanation / Answer

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Solution 4:

Journal Entries Date Particulars Debit Credit 15-Dec-19 Lomas Capital Dr $98,000.00              To Cash $98,000.00 (To record permanent withdrawl of capital by Lomas)

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