1) record the entry for formation of partnership june 1 20202) record the withdrawl by partner november 203) record the closing of profit to capital may 314) record the admissin of william for 20% interest june 015) On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $294,000cash and $388,000 of equipment, respectively. The partnership also assumed responsibility for a $54,000 note payable associatedwith the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $164,000, bothare to receive an annual interest allowance of 10% of their original capital investments, and any remaining profit or loss is to be shared40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $114,000. At year-end, May 31, 2021, theIncome Summary account had a credit balance of $520,000. On June 1, 2021, Peter Williams invested $134,000 and was admitted tothe partnership for a 20% interest in equity.Required:1. Prepare journal entries for the following dates.a. June 1, 2020

Hi student Since there are multiple subparts, we will answer only first three subparts.

Answered: 1) record the entry for formation of…

1) record the entry for formation of partnership june 1 2020 2) record the withdrawl by partner november 20 3) record the closing of profit to capital may 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please no hand writing solution for other wise down vote
allowance of $6,000 per month to partner C. The articles of partnership provide for a salary If C withdrew only $4,000 per month, would a partner's cash withdrawal in lieu of edited to interest from another Dartner and (b) by contribu- tion of assets to the partnership. accoi what 9. Why is it important to state all partnership assets in terms of current prices at the time of the admission of a new partner? 10. Why might a partnership pay a bonus to a newly admitted partner? pactice Exercises PE 12-1A Journalizing partner's original investment Catrina Santana contributed a patent, accounts receivable, and $23,000 cash to a parthersinpa The patent had a book value of $8,000. However, the technology covered by the patent ap peared to have significant market potential. Thus, the patent was appraised at $85,000. The accounts receivable control account was $38.000, with an allowance for doubtful accounts of $2,000. The partnership also assumed a $10,000 account payable owed to a Santana…
Homework Activity 2 AB and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1* Jan 2019, their В 20,000 capital balances are: A 30,000 C 10,000 The terms of partnership provides that a. All partners are eligible for interest on capital @6% b. All partners are liable to pay interest on drawings @ 4% c. All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31s* Dec 2019 before making the above terms was 18,000. The drawings of the partners were: A 3,000 B 2,000 C 1,000 You are requested to prepare I. Profit and Loss Appropriations Account II. Capital accounts of three partners under fluctuating capital method
X, Y and Z were the partners in a partnership firm. The following information were relating to the business at the end of the year 2019: i. Capital balance of partners X, Y, Z as on 1st January, 2019 was RO 120000, RO 80000 and RO 60000 respectively. ii. Current account balance of partners as on 1st January, 2019: X: RO 45500 (Cr), Y: RO 32600 (Dr) Z: RO 22100 (Cr) iii. Drawings taken by the partners during the year was: X: RO 8800 Y: RO 7500 Z: RO 5400 iv. Interest…
X, Y and Z were the partners in a partnership firm. The following information were relating to the business at the end of the year 2019: i. Capital balance of partners X, Y, Z as on 1st January, 2019 was RO 120000, RO 80000 and RO 60000 respectively. ii. Current account balance of partners as on 1st January, 2019: X: RO 45500 (Cr), Y: RO 32600 (Dr) Z: RO 22100 (Cr) iii. Drawings taken by the partners during the year was: X: RO 8800 Y: RO 7500 Z: RO 5400 iv. Interest on drawings…
Hamisi and Peter are partners, sharing profits and losses in the ratio 3:2. The following is the trial balance in the partnership books at 31st December 2020. Dr Cr Shs Shs Capital Account at 1st January 2020 - Hamisi 16,400 - Peter 13,200 - Hamisi 3,600 - Peter 2,400 Provision for doubtful debts 480 Purchases…
Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Elayne Summers and Murv Newcomb have balances of $82,000 and $131,000, respectively. Rose Clayton is to be admitted to the partnership, contributing $55,000 cash to the partnership, for which she is to receive an ownership equity of $72,000. All partners share equally in income. a. Journalize the entry to record the admission of Rose Clayton, who is to receive a bonus of $17,000. If an amount box does not require an entry, leave it blank. Cash Elayne Summers, Capital Murv Newcomb, Capital Rose Clayton, Capital Feedback ►Check My Work b. What are the capital balances of each partner after the admission of the new partner? Partner Elayne Summers Murv Newcomb Rose Clayton 55,000 $ Balance 94,500 X $ 143,500 X 30,000 X
Case 1 Mazin, Mansoor and Malik started a partnership firm on January 1, 2019. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Mazin is to be paid salary of RO. 12000 p.a. and Mansoor commission of RO. 2,500 every 6 months. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4,000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO.180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on the above information answer the following ‘3’ questions. (Do not upload any documents in the moodle) 30. The balance of capital for partner Mansoor at the end of the year…
Exercise 3-8. Distribution of Net Income to partners On March 1, 2023 Glenda and Harry formed GH Partnership with initial investment of P800,000 and P1,200,000, respectively. Glenda is appointed as the managing partner. The articles of co-partnership provides that profit or loss shall be distributed accordingly: 10% interest on original capital contribution ratio. Monthly salary of P10,000 and P5,000 respectively for Glenda and Harry. . Glenda shall be entitled to bonus equivalent to 10% of net income after interest, and salary. The remainder shall be distributed in ratio of 4:6 for Glenda and Harry, respectively. ● For the year ended December 31, 2023, the partnership reported net income of P1,000,000. Required: Compute for the share in net income of Glenda for the year ended December 31, 2023.
Do not give answer in image
Case 1 Mazin, Mansoor and Malik started a partnership firm on January 1, 2019. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Mazin is to be paid salary of RO. 12000 p.a. and Mansoor commission of RO. 2,500 every 6 months. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4,000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO.180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on the above information answer the following ‘3’ questions. (Do not upload any documents in the moodle) 31. Identify which one of the following accounting entry for payment…
Homework Activity 2 A B and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1st Jan 2019, their capital balances are: A 30,000 B 20,000 C 10,000 The terms of partnership provides that All partners are eligible for interest on capital @6% All partners are liable to pay interest on drawings @ 4% All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31st Dec 2019 before making the above terms was 18,000. The drawings of the partners were: A 3,000 B 2,000 C 1,000 You are requested to prepare Profit and Loss Appropriations Account Capital accounts of three partners under fluctuating capital method