Required:Prepare the necessary journal entries, for each of the following independent situations.E contributes $36,000 in cash to the business to receive a 10 percent interest in thepartnership. Goodwill is to be recorded.a.b.C.d.E contributes $55,000 in cash to the business to receive a 20 percent interest in thepartnership. No goodwill or other asset revaluation is to be recorded.E pays $9,000 in cash directly to each of the partners to purchase a 10 percentinterest in the partnership. No goodwill or other asset revaluation is to berecorded.C retires from the partnership and, as per the original partnership agreement, is toreceive cash equal to 125 percent of her final capital balance. No goodwill orother asset revaluation is to be recognized. 1. Following is the current balance sheet for a local partnership of doctors:Cash and current assets$30,000Land180,000Building and equipment (net100,000$310,000LiabilitiesA, capitalB, capitalC, capitalD, capital$40,00020,00040,00090,000120,000$310,000Profits and losses are split according to the following percentages: A, 30%; B, 10%; C,40% and D, 20%.Required:Prepare the necessary iournal entries. for each of the following independent situations.

E contributes $36,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded.Journal Entry:E's Capital Account:Details DebitCreditCash$36,000Goodwill ($36,000 * 10%)$6,000Capital$30,000E contributes $55,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset revaluation is recorded.Journal Entry:Details DebitCreditCash$55,000Capital$55,000E pays $9,000 in cash directly to each of the partners to purchase a 10 percent interest in the partnership. No goodwill or other asset revaluation is recorded.Journal Entry:Details DebitCreditCash$9000A Capital $9,000 * 30%$2,700B Capital $9,000 * 10%$900C Capital $9,000 * 40%$3,600D Capital $9,000 * 20%$1,800E retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 125 percent of her final capital balance. No goodwill or other asset revaluation is recognized.Journal Entry:Details DebitCreditCapital$30,000Cash (125% of E's Final Capital Balance)$.37,000E contributes $36,000 cash, creating goodwill, receiving a 10% interest: Debit Cash $36,000, Credit Goodwill $6,000, Credit E, Capital $30,000. D: E retirement - Debit E, Capital $30,000, Credit Cash $37,500 (125% of final balance).

Business

Accounting

1. Following is the current balance sheet for a local partnership of doctors: Cash and current assets Land Building and equipment (net $30,000 180,000 100,000 $310,000 Liabilities A, capital B, capital C, capital D, capital $40,000 20,000 40,000 90,000 120,000 $310,000 Profits and losses are split according to the following percentages: A, 30%; B, 10%; C, 40% and D, 20%. Required: Prepare the necessary iournal entries. for each of the following independent situations.

1. Following is the current balance sheet for a local partnership of doctors: Cash and current assets Land Building and equipment (net $30,000 180,000 100,000 $310,000 Liabilities A, capital B, capital C, capital D, capital $40,000 20,000 40,000 90,000 120,000 $310,000 Profits and losses are split according to the following percentages: A, 30%; B, 10%; C, 40% and D, 20%. Required: Prepare the necessary iournal entries. for each of the following independent situations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Required:
Prepare the necessary journal entries, for each of the following independent situations.
E contributes $36,000 in cash to the business to receive a 10 percent interest in the
partnership. Goodwill is to be recorded.
a.
b.
C.
d.
E contributes $55,000 in cash to the business to receive a 20 percent interest in the
partnership. No goodwill or other asset revaluation is to be recorded.
E pays $9,000 in cash directly to each of the partners to purchase a 10 percent
interest in the partnership. No goodwill or other asset revaluation is to be
recorded.
C retires from the partnership and, as per the original partnership agreement, is to
receive cash equal to 125 percent of her final capital balance. No goodwill or
other asset revaluation is to be recognized.

1. Following is the current balance sheet for a local partnership of doctors:
Cash and current assets
$30,000
Land
180,000
Building and equipment (net
100,000
$310,000
Liabilities
A, capital
B, capital
C, capital
D, capital
$40,000
20,000
40,000
90,000
120,000
$310,000
Profits and losses are split according to the following percentages: A, 30%; B, 10%; C,
40% and D, 20%.
Required:
Prepare the necessary iournal entries. for each of the following independent situations.

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