Chapter 5
Partnerships
235
b) On May 1, 2016, Baker invested an additional $4,000 in cash into the business. Record the
journal entry.
Date
Account Title and Explanation
Debit
Credit
Analysis
What are some of the advantages of Andrew and Baker forming a partnership?
AP-3B (
4
)
Selena Hegarty, Cody Debruyn and Lenore Raap operate their business as a partnership.
According to their partnership agreement, Selena and Lenore split 51% of the profits equally.
The remainder of the profits goes to Cody. Record the entry for the division of profits of
$100,000 on December 31, 2016. Assume that revenues and expenses have already been
closed to the income summary account.
Date
Account Title and Explanation
Debit
Credit
