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Partner Drawings Capital Warning Don\'t show me this message again for the assig

ID: 2459346 • Letter: P

Question

Partner

Drawings

Capital

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No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

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DIVISION OF NET INCOME

Art Niensted

Greg Bolen

Krista Sayler

Total

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NBS COMPANY
Partners’ Capital Statement
For the Year Ended December 31, 2014

Art Niensted

Greg Bolen

Krista Sayler

Total

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At the end of its first year of operations on December 31, 2014, NBS Company’s accounts show the following.

Partner

Drawings

Capital

Art Niensted $22,570 $47,530 Greg Bolen 13,630 39,380 Krista Sayler 10,550 24,670
The capital balance represents each partner’s initial capital investment. Therefore, net income or net loss for 2014 has not been closed to the partners’ capital accounts.

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Explanation / Answer

A. Journal entries

B. Schedule showing distribution of net income under assumption 3.

C. Partner capital statement

Account titles debit credit 1. Net income 28270 Art niensted 16962 Greg bolen 8481 Krista saylor 2827 2. Net income 39720 Art niensted 19760 Greg bolen 15400 Krista saylor 4560 3. Net income 18300 Art niensted 15955 Greg bolen 1908 Krista saylor 437