| A investment | | | | | | | | | | 2 | Small | | | | Big | | | Total |
| Account Title | | | Debit | | Credit |
| Cash | | | $ 20,000.00 | | | | | | Total Income | | | | | | | | | $ 100,000.00 |
| Inventory | | | $ 30,000.00 |
| Computer Equip. | | | $ 40,000.00 | | | | | | Allocation of $20000-Capital Balances | | | $ 8,000.00 | | | $ 12,000.00 | | | $ 20,000.00 |
| | | | | | | | | | | | | (40000/100000=40%)(.40*20000) | | | (60000/100000=60%)(.60*20000) |
| Accounts Payable | | | | | $ 50,000.00 | | | | Allocation of $30000-Services | | | $ 20,000.00 | | | $ 10,000.00 | | | $ 30,000.00 |
| Acc. Depreciation | | | | | $ 20,000.00 |
| A's Capital | | | | | $ 20,000.00 |
| | | | | | | | | | Net Income | | | | | | | | | $ 50,000.00 |
| | | | | | | | | | | | | | | | | | | 100000-20000-30000=50000 |
| B Investment |
| Account Title | | | | | | | | | Profits equally Shared | | | $ 25,000.00 | | | $ 25,000.00 | | | $ 50,000.00 |
| Cash | | | $ 10,000.00 | | | | | | | | | (50000/2) | | | (50000/2) |
| Computer Software | | | $ 20,000.00 |
| B Capital | | | | | $ 30,000.00 | | | | Total | | | $ 53,000.00 | | | $ 47,000.00 | | | $ 100,000.00 |
| | | | | | | | | | Account Title | | | Debit | | | Credit |
| | | | | | | | | | Income Summary | | | $ 100,000.00 |
| | | | | | | | | | Big Capital | | | | | | $ 47,000.00 |
| | | | | | | | | | Small Capital | | | | | | $ 53,000.00 |
tj8ph08
Unit1IP.xlsx
