8. Megan, Emma and Jennifer are partners with capital balances of P784,000, P2,730,000 and P1,190,000 respectively, sharingprofits and losses in the ratio of 3:2:1. Cara is admitted as a new partner. Accordingly, she is to invest cash for a 25%interest in the partnership. A bonus totaling P735,000 was given by the existing partners to Cara.How much cash was contributed by Cara?A. P441,000B. P1,078,000C. P833,000D. P588,000

The existing partners give bonus to new partner in case the cash brought by new partner is less than…

Answered: 8. Megan, Emma and Jennifer are…

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 capital balance for Messalina is $210,000 and for Romulus is $140,000. These two partners share profits and losses 60 percent (Messalina) and 40 percent (Romulus). Claudius invests $100,000 in cash in the partnership for a 20 percent ownership. The bonus method will be used. What are the capital balances for Messalina, Romulus, and Claudius after this investment is recorded? $216,000, $144,000, $90,000 $218,000, $142,000, $88,000 $222,000, $148,000, $80,000 $240,000, $160,000, $100,000
Bianca, Mariel and Toni are partners with capital balances of P100,000, P140,000, and P180,000, respectively. They share profits and losses in the ratio of 10:15:20. Toni decides to withdraw from the partnership receiving P240,000 including a loan a loan to the partnership in the amount of P10,000 Using asset revaluation method, how much is the amount of asset revaluation?
A and B form a new partnership. A invests P300,000 in cash for his 30% interest in the capital and profits of the business. B contributes cash and building with a fair market value of P600,000. The building is subject to a P40,000 mortgage that the partnership will assume. Compute the amount of cash B should contribute.
TM and SJ, having capital balances of Php980,000 and Php525,000 respectively, decided to admit GD into their partnership. GD is to invest sufficient amount in order to have a 25% interest in the partnership. If TM and SJ share profit in a proportion of 3:1 respectively, and SJ’s capital balance after GD’s investment is Php589,750. How much was invested by GD?
Samuel and Darci are partners. The partnership capital for Samuel is $65,500 and that of Darci is $89,200. Josh is admitted as a new partner by investing $56,800 cash. Josh is given a 20% interest in return for his investment. The amount of the bonus to the old partners is a.$56,800 b.$0 c.$14,500 d.$70,500
Smith, Wong, and Krishnan form a partnership. Smith contributes RM180,000, Wong contributes RM150,000, and Krishnan contributes RM270,000. Their partnership agreement calls for a 5% interest allowance on the partner's capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of RM174,000 for its first year, what amount of income is credited to Wong's capital account? A RM55,500. B RM57,000. C RM58,000. D RM61,500.
Rachel, Monica and Phoebe are partners with capital balances of P896,000, P3,120,000 and 3,160,( respectively, sharing profits and losses in the ration 3:2:1. Janice is admitted as a new partner bringing with her expertise and is to invest cash for a 25% interest in the partnership, which includes a credit of P840,000 bonus upon his admission. 1.How much cash should Janice contribute? A.1,560,000 B. 1,800,000 C. 2,540,000 D. 672,000
The capital balance for Maxwell is $110,000 and for Russell is $40,000. These two partners share profits and losses 70 percent (Maxwell) and 30 percent (Russell). Evan invests $50,000 in cash into the partnership for a 30 percent ownership. The bonus method will be used. What is Russell’s capital balance after Evan’s investment? $35,000 $37,000 $40,000 $43,000
On February 1, 2022, AA and BB formed a partnership and agreed to share profits in the ratio of 4:6, respectively. AA contributed a laptop which cost him P68,000 and was estimated to have a value of P50,000 on date of formation. BB contributed cash of P250,000. How much is the capital account of BB upon formation of the partnership?
Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $140,000, $80,000, and $55,000, respectively. (a) Your answer is correct. Assume Sanford joins the partnership by investing $135,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Sanford, Capital Daggett, Capital Lamppin, Capital Pendergast, Capital + + + Debit 135000 Credit 102500 16250 9750 6500
Allocation of bonus to Arun and Margot: Arun Margot C. $50,000 Total capital of Arun and Margot Investment by new partner, Tammy Total capital of new partnership Tammy's capital credit Total bonus to Arun and Margot Prepare the journal entries to show the resulting each of the three partners' capital accounts. If an amount box does not require an entry, leave it blank. A. B. C. %24 %24 %24 %24
Zach and Christine are partners with USD60,000 and USD20,000 capital balances, respectively. Gains and losses are divided in a 6:4 ratio. The partners decided to form a new partnership with Sookie, who invested land worth USD115,000 in exchange for a 30% interest in the new partnership. Sookie's cost of the land was USD102,000 . What is Zach's capital balance now that Sookie has joined the partnership?

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