A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.

A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The CL Partnership has two partners, Cleo andLeo. Each partner’s basis in his or her partnership…

A: Partnership It refers to an agreement between two or more people to oversee the business operations…

Q: partnership of $18,000. Lou's basis in the land after the distribution is: a. $35,000 C. $25,000 b.…

A: Given :> Lou's Outside basis = $ 35,000> following distributions to Lou > Cash and…

Q: entities: a partnership and an S-Corp. Her basis in the partnership is $40,000. Her basis in the…

Q: H has beginning basis in his partnership interest of $500. During the year H is allocated $100 of…

A: Partnership: Partnership is an entity formed by two individuals having a mutual consent to start an…

Q: Joy, a sole proprietor, and Baby, with no existing business, have decided to form a partnership. Joy…

Q: Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their…

A: The partnership is an agreement between two or more partners where partners are agreed to work…

Q: Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of…

A: Partnership accounting involves tracking and managing financial transactions within a business owned…

Q: Abby and Bailey are partners

A: Partnership is a type of business where two or more partners are agreed to carry a business together…

Q: 1. Seth and Rachel have original investments of $50,000 and $100,000, respectively, in a…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of…

A: Partnership means where two or more person comes together to run the business and share profit or…

Q: Oscar and Frank form an equal partnership, the O and F Partnership. Oscar contributes land with an…

A: Since we answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and…

Q: How much gain or loss will Bill recognize on the distribution? What is Bill's basis in the inventory…

A: The calculation of gain or loss on distribution and basis in inventory and capital asset is shown…

Q: partnership with net assets

A: Capital is actually the money invested to start a venture and generates revenues. It’s also the…

Q: Finn and Hart form a partnership, contributing $44,000 and $66,000, respectively. Determine their…

A: As requested to answer only Part A so we are answering only Part A.

Q: alter receives cash of $60,700 and land with a fair market value of $242,800 (adjusted basis of…

A: Partnership Distributions are mainly of 2 types: 1. Cash Distribution 2. Property Distribution 1.…

Q: basis in his partnership interest

A: Answer (a) $0 According to IRS, no gain or loss is recognized by partners or partnership firm at the…

Q: Ma1. Nina and Sue form an equal partnership during the current year. They agree to share profits…

A: a. Is any gain or loss recognized on the formation of the partnership? There is no gain or loss…

Q: James invests $19000 in cash (admission by investment) in the Seiler-Shaw partnership to acquire a…

A: Answer:- Partnership meaning:- Partnership is basically an agreement between two or more persons to…

Q: Larry and Jessica form the L&J Partnership. Larry contributes property with an adjusted basis of…

A: Hi, since there are multiple questions posted, we will answer first three question. If you want any…

Q: Rose and Yana formes a partnership. Rose contributed inventory with a fair market value that is…

A: Inventory is recorded in the books of accounts at Lower of : Book value Fair market value Fixed…

Q: 2. Recording investment of assets and liabilities in a partnership. Sarah Punter operates a sole…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Myles Etter and Crystal Santori are partners who share in the income equally and have capital…

A: Partnership It is that form of organization which is owned and managed by two or more persons who…

Q: Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of…

A: Abby capital = $66,800 Abby’s ½ interest = $66,800 * ½ = $33,400

Q: Farah, Marwah, and Waseem are partners in a firm. They have capital balances of $80,000, $60,000,…

A: 1. Bonus Method - the payment to Marwah in excess of his capital balance will be shouldered by the…

Q: 18. DSP Company earned P100,000 on sales of P1,000,000. It earned P130,000 on sales of P1,100,000.…

A: Contribution Margin :— Contributions Margin is the Difference Between the Sales and Variable Cost.…

Q: Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of…

A: Option c is correct. i.e $34,550. Abby's capital account is 69,100. She sells half of her interest,…

Q: Select for each of the following either "Yes", it is a guaranteed payment or "No", it is…

A: As per Section 4 of The Indian Partnership Act 1932, a partnership is the relationship between two…

Q: Seth and Beth have original investments of $50,000 and $100,000, respectively, in a partnership. The…

A: Introduction:- The following basic information as follows under:- Salary for Seth :…

Q: Matthew and Hein each $141400 for admission into the organization. Before this transaction, Matthew…

A: The partnership is liquidated when there is admission or withdrawal of a partner. The partner's…

Q: Partners A, B, and C share income and losses in the ratio of 4:3:3, respectively. Assume the…

A: Liquidation is the procedure of closing a business as well as distributing its investments to…

Q: The following facts were available about the XY Partnership on January 1st 2021 Existing Partners X…

A: Partnership is a form of business in which two or more people decide to operate a business and agree…

Q: Partner Z of the XYZ partnership receives a liquidating distribution of the following: Basis…

A: There will be no gain or loss. The deficit between inside and the outside basis is $25,000#…

Q: The E.N.D. partnership has the following capital balances as of the end of the current year:…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Xavier and Yolanda have original investments of $49,600 and $96,200, respectively, in a partnership.…

A: Partnership characteristics includes: Sharing of profits and losses Mutual agency Unlimited…

Q: H has beginning basis in his partnership interest of $500. During the year H is allocated $100 of…

A: Partnership is the business, where 2 or more than 2 members can manage and operate a business. There…

Q: The E.N.D. partnership has the following capital balances as of the end of the current year:…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda…

A: Goodwill Method :— At the time of retirement of partners. Amounts paid to retired partner in excess…

Q: The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda…

A: Partnership is the association of two or more persons who have agreed to share profit and losses in…

Q: A, B and C are partners with the following P/L ratio and capital balances: A (60%) P100,000; B(30%)…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: John has a $24,000 basis in his partnership interest. He receives a current distribution of $4,000…

A: To know the Partnership Interest of John, we will need to reduce his outstanding interest with the…

Q: A and B form the equal AB partnership. A contributes cash of $20,000. B con- tributes land with a…

A: In the given question, AB partnership's details are mentioned. We have to describe the tax…

Q: Antonio and Barbara are partners who share income in the ratio of 1:2 and have capital balances of…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: X, Y and Z are partners and have equities of P 5 000 each. With the consent of X and Y, Z is about…

A: The question is related to Partnership Accounting. There are three patners having capital of 5000…

Q: Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of…

A: To find the answer, you need to determine how much capital Abby's interest represents. You can do…

Question

Daryl decided to withdraw from Daryl, Lei,
Stephen, and Jacob Partnership. They share
profit and loss in the ratio of 2:3:2:3 and have
capital balances of P100,000, P160,000,
P100,000 and P140,000, respectively. The assets
and liabilities of the partnership are fairly valued.
Required:
A. Record the withdrawal of Daryl from the
partnership under each of the following
independent assumption:
1. Daryl is paid cash of P100,000 for the book
value of his interest.
2. Daryl is paid cash of P120,000 for the book
value of his interest.

B. Determine the capital balance of each
remaining partner using assumption A2 above.
What personal settlement will remaining partners
have if they want to bring their capital balances to
their profit and loss sharing ratio of 5:3:2 for Lei,
Stephen, and Jacob, respectively?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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
Douglas pays Selena $45,700 for her 25% interest in a partnership with net assets of $127,900. Following this transaction, Douglas's capital account should have a credit balance of a. $45,700 b. $127,900 c. $11,425 d. $31,975
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
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.)
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
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda 160,000 Adams 140,000 Fergie 130,000 Gomez 120,000 Answer each A. Assume that the partners and losses 3:3:2:2,respectively. Fergie retires and is paid 151,000 based on the terms of the orginal partnership agreement. If the Goodwill method is used;what is the capital of the remaining three partners? B. Assume that the partners share profit and losses 4:3:2:1, respectively. Peneda retires and is paid 305,000 based on the terms of the orginal partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round intermediate calculations. Round to the nearest amounts. A. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________ B. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________
Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $199,800 and $62,680, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. Assume the sale occurs on December 31. What entry is required by the partnership if the sales price is (a) $66,600? (b) $87,700?
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 $
Please show work 1. Nan and Lew formed an equal partnership. Nan contributes property with an adjusted basis of $75,000 to a partnership. The property has a fair market value of $120,000 on the date of the contribution. a. What is the partnership’s basis in the property contributed by Nan? $ _________________ b. What is the amount of gain recognized by Nan in this transaction? $ __________________ c. Lew performs services valued at $105,000 for the partnership for his one-third interest in the partnership. Income or gain recognized $____________ His basis in the Partnership interest $____________
Blake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000. The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan's recognized gain or loss on the contribution? a.$11,000 loss b.$5,000 gain c.$16,000 gain d.$4,000 loss e.None of these choices are correct.
Beck and Nilo are equal partners in B & N Associates, a general partnership. B & N has the following liabilities at the end of the current year: Accounts payable Unsecured bank loan Note payable secured by collateral What amount of the debt is included in Beck's at-risk amount in the partnership? A. $2,000 B. $7,000 C. $13,000 D. $15,000 $4,000 10,000 16,000
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.