George Atlanta and Harriett Kirshner formed a partnership Names \'A&K Consulting

Question

George Atlanta and Harriett Kirshner formed a partnership Names 'A&K Consulting' on July 1 based upon the following language in the partnership agreement: 1. George Atlanta agrees to invest $30,000 cash and inventory valued at $56,000 2. Harriett Kirshner agrees to invest the same $86,000 in the following manner: Transfer of assets and liabilities of her business as listed below and will contribute enough cash to equal the investment by George Atlanta of $86,000. The Invetment by Harriett Kirshner will be at the agreed value Investment by Harriett Kirshner Balances on Kirshner's records Agreed Value Accounts Receivable $                         81,680 $   79,600 Inventory $                         11,400 $   12,800 Office Equipment (net) $                         14,300 $     9,000 Accounts Payable $                         24,800 $   24,800 Totals $                       132,180 $ 126,200 REQUIRED (a) Prepare the necessary journal entries to record the investments of Atlanta and Kirshner in the new partnership (b) Prepare a balance sheet at the beginning of the partnership (July 1) to reflect the transfers by both Atlanta and Kirshner into the new firm ( c) The partnership fiscal year end is June 30. Prepare the journal entries to close the income summary account and drawing accounts. The income summary account reflects a credit balancd of $74,000 and each partner had a drawing account debit balance of $31,000. George Atlanta and Harriett Kirshner formed a partnership Names 'A&K Consulting' on July 1 based upon the following language in the partnership agreement: 1. George Atlanta agrees to invest $30,000 cash and inventory valued at $56,000 2. Harriett Kirshner agrees to invest the same $86,000 in the following manner: Transfer of assets and liabilities of her business as listed below and will contribute enough cash to equal the investment by George Atlanta of $86,000. The Invetment by Harriett Kirshner will be at the agreed value Investment by Harriett Kirshner Balances on Kirshner's records Agreed Value Accounts Receivable $                         81,680 $   79,600 Inventory $                         11,400 $   12,800 Office Equipment (net) $                         14,300 $     9,000 Accounts Payable $                         24,800 $   24,800 Totals $                       132,180 $ 126,200 REQUIRED (a) Prepare the necessary journal entries to record the investments of Atlanta and Kirshner in the new partnership (b) Prepare a balance sheet at the beginning of the partnership (July 1) to reflect the transfers by both Atlanta and Kirshner into the new firm ( c) The partnership fiscal year end is June 30. Prepare the journal entries to close the income summary account and drawing accounts. The income summary account reflects a credit balancd of $74,000 and each partner had a drawing account debit balance of $31,000.

Explanation / Answer

George Atlanta and Harriett Kirshner formed a partnership Names 'A&K Consulting

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