(21Emig agrees to purchase Posada's ownership interest for $24,000 cash.(3)Posada is paid $30,300 from partnership assets, which includes a bonus to the retiring partner.(4)Posada is paid $17,020 from partnership assets, and bonuses to the remaining partners are recognized.If Emig's capital balance after Posada's withdrawal is $42,930, what were (1) the total bonus to the remaining partnersand (2) the cash paid by the partnership to Posada?(1) Total bonus(2)$Cash paid to Posada $

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Answered: (21 Emig agrees to purchase Posada's…

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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The E. N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 270,000 Adams 240,000 Fergie 230,000 Gomez 220,000 Total capital S 960, 000 Answer each of the following independent questions: Required: Assume that the partners share profits and losses 3:3:2:2, respectively, Fergie retires and is paid $269,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $355,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? Note: Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.
Long-term partners, A, B, and C have capital balances of P160,000, P60,000 and P50,000, respectively. They share in profits and losses 5:3:2, respectively. All assets are valued fairly. C decides to retire from the partnership. C sells the interest to B for P25,000. Compute B's capital balance after C withdrawal.
The E.N.D. partnership has the following capital balances as of the end of the current year: $ 190,000 170,000 Pineda Adams Fergie 160,000 Gomez 150,000 Total capital $ 670,000 Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $203,000 based on the terms the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $290,000 based on the terms the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (D not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) Capital Balance a. Pineda Adams Gomez b. Adams Fergie Gomez
Renata sold her interest in a partnership for $31,000 cash when her outside basis was $18,000. She was relieved of her $29,000 share of partnership liabilities. What is Renata's realized value from the sale of her partnership interest? $31,000 $42,000 $47,000 $60,000
Sennett invests P40,000 for a 20 percent interest in a partnership that has capital totaling P150,000 after admitting Sennett. Which of the following is true? a. The original partners received a bonus of P10,000 b. Sennett received a bonus of P10,000 c. Sennett's capital is P40,000 d. The original partners' capital in the business was P120,000 before admitting Sennett
Stein agrees to pay Choi and Amal $10,000 each for a one-third (331⁄3%) interest in the Choi and Amal partnership. Immediately prior to Stein’s admission, each partner had a $30,000 capital balance. Make the journal entry to record Stein’s purchase of the partners’ interest.
23. The capital account balances for April & May LLP on January 1, 2020, were as follows: April, capital P200,000 May, capital P100,000 April and May shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit July to the partnership with a 35% interest in partnership capital and net income. July invested P100,000 cash and no goodwill was recognized. What is the balance of April's capital account after the new partnership is created?
5 Donovan invests $60,000 for a 30% interest in a partnership in which the old partners have capital totaling $90,000 before admitting Donovan. After distribution of any bonus, what is Donovan’s capital balance? 6. Alex and Bret are partners who share profits and losses in a ratio of 3:1 and have capital balances of $75,000 and $150,000, respectively. They agree to admit Carmen to the partnership. Carmen invests $75,000 for a 35% interest in the partnership. The new total capital balance after admitting Carmen is $300,000. The entry to record the admission of Carmen to the partnership is Debit Cash $75,000 credit Carmen, Capital $75,000 Debit Cash $105,000 credit Carmen, Capital $105,000 Debit Cash $75,000 debit Alex, Capital $22,500 debit Bret, Capital $7,500 credit Carmen, Capital $105,000 Debit Cash $105,0000 credit Alex, Capital $22,500 credit Bret, Capital $7,500 credit Carmen,…
Shirley contributes property to a new partnership with a value of $1,000,000 and a basis of $400,000 that is secured by a $500,000 nonrecourse note. Under the terms of the partnership agreement, Shirley will be allocated 25% of all profits. The partnership agreement also states that "excess nonrecourse liabilities" will be allocated to partners according to profit ratios. How much of the nonrecourse liability will be allocated to Shirley? please dont provide answer in images thank you
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 270,000 Adams 240,000 Fergie 230,000 Gomez 220,000 Total capital $ 960,000 Answer each of the following independent questions: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $269,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $355,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)
Brown pays $90,000 to the Tripper Sprung Partnership in exchange for 30% ownership. Before the admission of Brown, the other partners had the following capital accounts and profit and loss sharing percentages: Tripper: $70,000 (60%) Sprung : $50,000 (40%) Using the bonus method, what will be the balance in Sprung’s capital account after the admission of Brown. $10,800 $86,200 $39,200 $57,800 $60,800
Anna desires to purchase a 1/4 capital and profit and loss interest in the partnership of A, B, and C. The three partners agree to sell Ann 1/4 of their respective capital and profit and loss interest in exchange for a total payment of P40,000. The capital accounts and the respective percentage in interest in profits and losses immediately before the sale to lisa are as follows: A, capital (60%) P 80,000 B, capital (30%) P 40,000 C, capital (10%) P 20,000 Total partnership capital P 140,000 Some assets are not fairly valued, and the partners decided to have partnership revaluation prior to the acquisition of interest by Anna. Immediately after Anna's acquisition, what should be the capital balances of A, B, and C respectively? A. 69,0000, 34,500, 16,500 B. 77,000, 38,500, 19,500 C. 92,000, 46,500, 22,000 D. 60,000, 30,000, 15,000

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