Answers
Date | Account Title | Ref | Debit ($) | Credit ($) |
1-1-2016 | Building | $ 108,000 | ||
Equipment | $ 60,000 | |||
Cash | $ 42,000 | |||
O' Donnell, Capital | $ 105, 000 | |||
Reese, Capital | $ 105,000 | |||
12-31-2016 | Reese, Capital | $ 27,500 | ||
O' Donneel, Capital | $ 17,500 | |||
Income Summary | $ 10,000 | |||
O' Donneel = ($105,000 * 10%) + $ 7,000 = $ 10,500 + $ 7,000 = $17,500 | ||||
1-1-2017 | Cash | $ 15,000 | ||
O' Donneel, Capital | $ 2,800 | |||
Reese, Capital | $ 25,200 | |||
Dunn, Capital | $ 43,000 | |||
DUnn = ( $210,000 - $10,000 + $ 15,000)*20% = $ 43,000 O' Donnel = ($43,000 - $15,000)*10% = $ 2,800 Reesee = ($43,000 - $ 15,000)* 90% = $ 25,200 | ||||
12-31-2017 | O' Donneel, Drawings | $ 17,955 | ||
Reesee, Drawings | $ 8,000 | |||
Dunn, Drawings | $ 8,000 | |||
O' Donneel, Capital | $ 17,955 | |||
Reesee, Capital | $ 8,000 | |||
Dunn, Capital | $ 8,000 | |||
O' doneell = {($105,000 + 17,500 - 2800)*15%} or $ 8000 w.e.h = $ 17,955 Reesee = {(105,000 - 27,500 - 25,200)*15%} or $8,000 w.e.h = $ 8,000 Dunn = (43,000 *15%) or $ 8,000 w.e.h = $ 8,000 w.e.h = which ever is higher | ||||
12-31-2017 | Income Summary | $ 75,000 | ||
O' Donneel, Capital | $ 19,470 | |||
Reesee, Capital | $ 33,318 | |||
Dunn, Capital | $ 22,212 | |||
O' Donneel = (119,700 * 10%) + (75,000 *10%) = $ 19,470 Reesee = (75,000 - 19,470) * 6 / 10 = $ 33,318 Dunn = (75,000 - 19,470) *4 / 10 = $ 22,212 | ||||
1-1-2018 | Dunn, Capital | $ 57,212 | ||
Postner, Capital | $ 57,212 | |||
(43,000 - 8,000 + 22,212 = 57,212) | ||||
31-12-2018 | O' Donneel, Drawings | $ 18,182 | ||
Reesee, Drawings | $11,642 | |||
Postner, Drawings | $ 8,582 | |||
O' Donneel, Capitla | $ 18,182 | |||
Reesee, Capital | $ 11,642 | |||
Postner, Capital | $ 8,582 | |||
O' Donnell = [(119,700 + 19,470 - 17,955)*15%] or $ 8000 w.eh = $ 18,182 Reesee = [(52,300 + 33,318 - 8000)*15%] or $8,000 w.e.h = $ 11,642 Postner = 57,212 * 15% or $ 8,000 w.e.h = $ 8,582 | ||||
12-31-2018 | Income Summary | $ 74,000 | ||
O' Donnel, Capital | $19,521 | |||
Reesee, Capital | $ 32,687 | |||
Postner, Capital | $21,792 | |||
O' Donnel = (121,215 *10%) + (74,000 *10%) = 19,521 Reesee = (74,000 - 19,521)*6 / 10 = 32,687 Postner = (74,000 - 19,521) * 4 / 10 = 21,792 | ||||
1-1-2019 | Postner, Capital | $70,422 | ||
O' Donneel, Capital | $704 | |||
Reesee, Capital | $ 6,338 | |||
Postner = 57,212 - 8,582 + 21,792 = 70,422 O' DOnnell = (70,422 *10%) *10% = 704 Reesee = (70, 422 * 10%) *90% = 6,338 |