A and B are partners with initial investment of $60,000 and $40,000 respectively. They share income and loss by 60% for A and 40% for B. They accepted C as a new partner in the partnership. Required: Record the admission of C under each of the following separate assumptions: (1) C purchased one-half of A's interest for $35,000 cash (2) C invests cash of $40,000 in the partnership and receives 25% ownership interest in the new partnership. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE BETWEEN NUMBERS Dr Cash 100000 Cr. Land 100000

A and B are partners with initial investment of $60,000 and $40,000 respectively. They share income and loss by 60% for A and 40% for B. They accepted C as a new partner in the partnership. Required: Record the admission of C under each of the following separate assumptions: (1) C purchased one-half of A's interest for $35,000 cash (2) C invests cash of $40,000 in the partnership and receives 25% ownership interest in the new partnership. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE BETWEEN NUMBERS Dr Cash 100000 Cr. Land 100000

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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A
Xavier and Yolanda have original investments of $51,500 and $100,100, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $27,200 and $29,600, respectively; and the remainder to be divided equally. How much of the net income of $114, 400 is allocated to Xavier? a. $37,500 b. $61, 368 с. $51,140 d. $27,200
Faith, Hope, and Love are partners sharing profits and losses in the ratio 22 1 and have capital balances of P800,000, P800,000, and P400,000, respectively. Grace purchases half of Faith's interest by paying her directly for an amount that earned her a profit of P60,000. The entry to record the admission of Grace in the partnership includes a Select the correct response debit to Cash, P460,000 credit to Grace, Capital, P400,000 credit to Grace, Capital, P460,000 debit to Faith, Capital, P460,000
Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of $40,000 is allocated to Xavier? 21. a. $20,000 b. $22,000 c. $32,000 d. $0 Moderate OBJ: LO: 12-02 DIF: PTS: 1 ANS: B KEY: Bloom's: Application NAT: BUSPROG: Analytic
Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $41,700 and $79,200, respectively, at the time they decide to terminate the partnership. Noncash assets with a book value of $120,900 are sold for $75,000. What amount of loss on realization should be allocated to Alpha? a.$75,000 b.$41,700 c.$25,000 d.$15,300
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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
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. Cash Grayson Jackson, Capital Harry Barge, Capital Lewan Gorman, Capital b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ Harry Barge $ Lewan Gorman $
Sammer an Moneer are partners having capital balances of 100,000 and 120,000 respectively, they admit Tala to a one third interest in the partnership capital and profits for investment 130,000, if good method is used in recording tala admission to the parnership: OA. sameer capital will be 120,000 OB. moneer capital will be 130,000 O c. tala capital will be 170,000 OD. good will be recorded to sameer $10,000
Please answer in proper format with all working clearly S.Pagan and T. Tabor share income on a 7:3 basis. They have capital balances of $120,000 and $51,000, respectively, when W. Wolford is admitted to the partnership. Prepare the journal entry to record the admission of W. Wolford under each of the following assumptions. (a) Investment of $88,000 cash for a 30% ownership interest with bonuses to the existing partners. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation (b). Debit Account Titles and Explanation Investment of $46,000 cash for a 30% ownership interest with a bonus to the new partner. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit Debit Credit
a. A and B form an equal partnership, AB partnership, with A contributing stock worth a value of $10,000 and a basis of $10,000, as well as land with a value of $10,000 and a basis of $7,000. B contributes accounts receivable (which resulted from their business) with a value of $20,000 (B was on the cash basis). Describe the consequences to A, B, and the AB partnership as a result of these contributions.
M and N admits O as a new partner. The partnership statement of financial position immediately before the admission of C is shown below: