6. Charlie McBride and Ian Jordan, who have ending capital balances of $90,000 and $40,000 respectively, agree to admit two new partners to their business on May 1, 20--. Paul Menendez will buy 30% of McBride's equity interest for $35,000 and 20% of Jordan's equity interest for $22,000. Alice Domski will invest $38,000 in the business for which sh will receive a $38,000 equity interest. equired: a. Prepare the journal entries showing the above transactions admitting Menendez and Domski to the partnership. GENERAL JOURNAL Page 1 Post Ref. Dat: Description Debit Credit

6. Charlie McBride and Ian Jordan, who have ending capital balances of $90,000 and $40,000 respectively, agree to admit two new partners to their business on May 1, 20--. Paul Menendez will buy 30% of McBride's equity interest for $35,000 and 20% of Jordan's equity interest for $22,000. Alice Domski will invest $38,000 in the business for which sh will receive a $38,000 equity interest. equired: a. Prepare the journal entries showing the above transactions admitting Menendez and Domski to the partnership. GENERAL JOURNAL Page 1 Post Ref. Dat: Description Debit Credit

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 4CE

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Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.
Charlie McBride and Ian Jordan, who have ending capital balances of $90,000 and $40,000 respectively, agree to admit two new partners to their business on May 1, 20--. Paul Menendez will buy 30% of McBride's equity interest for $35,000 and 20% of Jordan's equity interest for $22,000. Alice Domski will invest $38,000 in the business for which sh will receive a $38,000 equity interest. Required: a. Prepare the journal entries showing the above transactions admittingMenendez and Domski to the partnership b. Calculate the ending capital balances for all four partners after theabove transactions. Charlie McBride: Ian Jordan: Paul Menendez: Alice Domski:
6) Oliva Tsang and David Breck began a partnership by investing $5,000 and $45,000 respectively. For the year-ended December 31, 2009, the partnership earned $100,000. The partners agree to share income by allowing a $65,000 per year salary allowance to Breck, a $15,000 per year salary allowance to Tsang, 5% interest on beginning capital balances and the remainder equally. a) Prepare calculations that show how the income should be allocated to the partners under the following plans for sharing net incomes and losses.
On December 31, the capital balances and income ratios in Sunland Company are as follows. Partner Capital Balance Income Ratio Trayer $ 64,500 50% Emig 35,000 30% Posada 34,500 20% (1) Each of the continuing partners agrees to pay $ 19,600 in cash from personal funds to purchase Posada’s ownership equity. Each receives 50% of Posada’s equity. (2) Emig agrees to purchase Posada’s ownership interest for $ 24,200 cash. (3) Posada is paid $ 37,700 from partnership assets, which includes a bonus to the retiring partner. (4) Posada is paid $ 25,780 from partnership assets, and bonuses to the remaining partners are recognized. Journalize the withdrawal of Posada under each of the following assumptions. If Emig’s capital balance after Posada’s withdrawal is $ 38,930, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada?
The capital accounts of Susan Yu and Ben Hardy have balances of $100,000 and $90,000 respectively. Ken Mahl and Jeff Wood are admitted to the partnership. Mahl buys one-fourth of Yu’s interest for $27,500 and 0ne-fifth of Hardy’s interest for $20,000. Wood contributes $ 35,000 to the partnership, for which he is to receive an ownership equity of $35,000. Journalize the entries to record the admission of (1) Mahl and (2) Wood. What are the capital balances of each partner after the admission pf the new partners?
The capital accounts of Trent Henry and Tim Chou have balances of $160,000 and $100,000, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $35,000 and one-fourth of Chou’s interest for $29,000. Clarke contributes $90,000 cash to the partnership, for which she is to receivean ownership equity of $90,000.a. Journalize the entries to record the admission of (1) Gilbert and (2) Clarke.b. What are the capital balances of each partner after the admission of the new partners?
On January 1, 2018, Cee and Dee have capital balances of P20,000 and P16,000 respectively. On July 1, 2018 Cee invests an additional P4,000 and Dee withdraws P1,600. Profits and losses are divided as follows: Dee is the managing partner and as such shall receive P16,000 salary and Cee shall receive P7,200; both partners shall receive interest of 10% on their beginning capital balances to offset whatever difference in capital investments they have and any remainder shall be divided equally. Income of the Cee-Dee partnership for the year 2018 is P9,600. Cee’s share in the net income is: a.P880 b.P9,200 c.P4,800 d. P600
The capital accounts of Trent Henry and Tim Chou have balances of $147,400 and $92,600, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $27,400 and one-fourth of Chou’s interest for $19,000. Clarke contributes $75,000 cash to the partnership, for which she is to receive an ownership equity of $75,000. a. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the chart of accounts for the exact wording of the account titles
On January 5, 2020, Elsa and Frozen formed a partnership with the following investments: Elsa contribute Cash, P200,000; Furniture and Fixtures, P80,000 while Frozen invested Cash amounting to P100,000 and Land, P350,000. Land was mortgaged to BPI for 50,000. Their agreed profit and loss ratio is 80:20 respectively. If Elsa is required to make his share in equity equal to 60%. How much is the total equity of the partners?
The Distance Plus partnership has the following capital balances at the beginning of the current year: Tiger (40% of profits and losses) Phil (40%) Ernie (20%) $ 140,000 110,000 125,000 Each of the following questions should be viewed independently. a. If Sergio invests $180,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio invests $130,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
7. The following transactions of Best Pizza, owned by Reyes, Ortiz and Flores, took place from March 1 to May 31, 2019: (see attached images) March 1 Reyes, who owns an ice cream parlor, invested cash of P80,000 and merchandise costing P120,000 but with a fair value of P70,000. Customers’ accounts of P50,000 were also taken over by the partnership at its realizable valuc of 80%. (Recognize an allowance for doubtful accounts for 20% of cost). Ortiz invested cash of P40,000 and pieces of furniture costing P150,000 which the partners agree to be 50% depreciated to arrive at its current fair value. May 1 Flores, an expert in pizza making, invested imported cooking equipment costing P350,000 but which fair value dropped by 40% of its cost. Flores made a down payment of P200,000 when this was purchased and issued a note for the balance half of which is still unpaid. Partners agree that the liability will be assumed, by the partnership. May 31 Partners agree that additional cash investments…
AGF partnership begins its first year of operation with the following capital balances and profit and loss percentages: Able Capital $ 60,000 (20%) Green Capital $80,000 (30%) Frank Capital $ 100,000 (50%) Each partner is allocated interest of 5% on beginning capital balances. Green is allocated salary of $20,000 for the full year. Frank is allocated salary of $10,000 for the full year. Able is not allocated salary. Each partner has drawings of $30,000 in the first year. Assume that partnership net income in the first year is $300,000. What is the balance in Frank's capital account at the end of the year a. $235,000 b. $214,000 c. $151,400 d. $274,000 e. $244,000