4. Roberts and Smith drafted a partnership agreementthat lists the following assets contributed at thepartnership's formation:Contributed byRoberts Smith$20,000 $30,00015,00040,000CashInventoryBuildingFurniture & Equipment15,000The building is subject to a mortgage of $10,000,which the partnership has assumed. The partnershipagreement also specifies that profits and losses are tobe distributed evenly. What amounts should berecorded as capital for Roberts and Smith at theformation of the partnership?RobertsSmith$35,000 $85,000$35,000 $75,000$55,000 $55,000$60,000 $60,000а.b.с.d.

A Partnership Agreement is a contract between two or more businesses or individuals who have opted…

4. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Contributed by Roberts Smith $20,000 $30,000 Cash Inventory Building Furniture & Equipment 15,000 40,000 15,000

4. Roberts and Smith drafted a partnership agreement that lists the following assets contributed at the partnership's formation: Contributed by Roberts Smith $20,000 $30,000 Cash Inventory Building Furniture & Equipment 15,000 40,000 15,000

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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. Partner A received the following in a nonliquidating distribution: Basis FMV Cash $20,000 $20,000 Inventory Item 1 $15,000 $18,000 Inventory Item 2 $10,000 $6,000 Capital Asset 1 $20,000 $7,000 Capital Asset 2 $10,000 $20,000 $75,000 $71,000 Assume A’s basis in the partnership before the distribution was $60,000. What would the bases of the assets be to A?
R. Stetson contributed $14,000 in cash plus office equipment valued at $7,000 to the SJ Partnership. The journal entry to record the transaction for the partnership is: Multiple Choice Debit Cash $14,000; debit Office Equipment $7,000; credit R Stetson, Capital $21,000. Debit Cash $14,000; debit Office Equipment $7,000; credit SJ Partnership, Capital $21,000. Debit SJ Partnership $21,000; credit R. Stetson, Capital $21,000. Debit R. Stetson, Capital $21,000; credit SJ Partnership, Capital $21,000. Debit Cash $14,000; debit Office Equipment $7,000; credit Common Stock $21,000.
ii.9
The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash Noncash assets a Maximum amount b Distributed $ 51,000 136,000 This partnership is being liquidated. Hendrick and Mitchum are each entitled to 30 percent of all profits and losses with the remaining 40 percent going to Redding. Hendrick Mitchum Liabilities Hendrick, capital Mitchum, capital Redding, capital a. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance? b. How should the $10,000 cash that is presently available in excess of liabilities be distributed? c. If the noncash assets are sold for a total of $51,000, what is the minimum amount of cash that Hendrick could receive? (Do not round intermediate calculations.) Redding C Minimum amount $ 41,000 91,000 71,000 (16,000)
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 50,000 Liabilities $ 42,000 Other assets 150,000 Miller, capital 69,000 Tyson, capital 69,000 Watson, capital 20,000 Total assets $ 200,000 Total liabilities and capital $ 200,000 b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
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Hw.114.
1 John and Mary are equal partnership in a partnership. John's beginning basis is 50,000 and Mary's beginning basis is 70,000 Sales 200,000 Long term capital gain Short term capital loss 6,000 -4,000 Dividend income 2,000 salaries 50,000 Rent Expense 20,000 Interest income 5,000 Depreciation Section 179 expense 30,000 20,000 Distribution to Mary 40,000 Distrbution to John 30,000 1 Calculate ordinary income 2 Calculate Separately Reported Items 3 Calculate ending basis for John and Mary.