Admission of a new partner by purchase of existing partnership interest Jacob and Kyle are partners in JK Construction Services. Their capital accounts are currently as follows: Jacob Kyle Total capital $460,000 340,000 $800,000 Jacob and Kyle share income equally. Partnership identifiable net assets are reported at amounts approximating fair value. Lester purchases a 20 percent interest in the partnership by paying Jacob and Kyle a total of $175,000 for 20 percent of each of their interests in the partnership. Required Record the addition of Lester to the partnership, using:

Admission of a new partner by purchase of existing partnership interest Jacob and Kyle are partners in JK Construction Services. Their capital accounts are currently as follows: Jacob Kyle Total capital $460,000 340,000 $800,000 Jacob and Kyle share income equally. Partnership identifiable net assets are reported at amounts approximating fair value. Lester purchases a 20 percent interest in the partnership by paying Jacob and Kyle a total of $175,000 for 20 percent of each of their interests in the partnership. Required Record the addition of Lester to the partnership, using:

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 E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 200,000 Adams 180,000 Fergie 170,000 Gomez 160,000 Total capital $710,000 Answer each of the following independent questions: Required: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $194,000 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 $310,000 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? Note: Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.
die original parde not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) a. Pineda Adams Gomez b. Adams Fergie Gomez Capital Balance
Jerry and Sherry own and operate a partnership. Jerry's capital balance is $50,000 and Sherry's is $55,000. Jerry and Sherry decided to admit a new partner, Allison, to their partnership. By the terms of their partnership agreement, Jerry and Sherry share income/ loss equally, Allison intends to contribute $40,000 to receive a Twenty-five percent interest in the partnership. Required: a. Revalue the partnership assets b. Determine the total equity of the partnership after the new partner is admitted c. Determine the new partner's share of the total equity d. Determine the bonus resulting from Allison's equity of her contribution e. Make journal entries to rccord Allison's admission to the partnership
The Felton and Burchell Partnership has partner capital account balances as follows: Felton, Capital $550,000 Burchell, Capital 200,000 The partners share income and losses in the ratio of 60% to Felton and 40% to Burchell.Prepare the journal entry on the books of the partnership to record the admission of Santos as a new partner under the following circumstance. Santos pays $400,000 to Felton and $150,000 to Burchell for one-half of each of their ownership interest in a personal transaction. Please provide answer in step by step format and it should be not in image format and provide fast solution
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 S 960, 000 Answer each of the following independent questions: Required: 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? Note: Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.
Admitting New Partners Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $231,000 and $97,000, respectively. Etter, with the consent of Santori, sells one-third of her interest to Lonnie Davis. Question Content Area a. What entry is required by the partnership if the sales price is $60,000?
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 150,000 Adams 130,000 Fergie 120,000 Gomez 110,000 Total capital $ 510,000 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 $160,000 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 $285,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) Capital Balance a. Pineda Adams Gomez b. Adams Fergie Gomez
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda 2$ 290,000 Adams 260,000 Fergie 250,000 240,000 Gomez Total capital $1,040,000 Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $280,000 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? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $320,000 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.) Сapital Balance a. Pineda Adams Gomez b. Adams Fergie Gomez
The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as of January 1, 20x2: Capital accounts A, Capital B, Capital 1,000,000 1,600,000 Profit or loss ratios 600,000 40% 60% On January 1, 20x2, C was admitted to the partnership when he acquired 20% interest in the net assets and profits of the firm for a P400,000 investment. The bonus method was used to record C's admission into the partnership. For the year 20x2, the partnership earned profit of P4,000,000. However, it was discovered that the following items were overstated: 20x1 20x2 Accrued income 80,000 100,000 Prepaid asset Accrued expense 140,000 200,000 160,000 240,000 Unearned income 60,000 40,000 How much is the share of A in the 20x2 profit?
The Felton and Burchell Partnership has partner capital account balances as follows: Felton, Capital $555,000 Burchell, Capital $235,000 The partners share income and losses in the ratio of 70% to Felton and 30% to Burchell.Prepare the journal entry on the books of the partnership to record the admission of Santos as a new partner under the following three independent circumstances. Santos invests $239,000 in the partnership for a one-third interest in partnership capital. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit select an account title enter a debit amount enter a credit amount select an account title enter a debit amount enter a credit amount select an…
Instructions The capital accounts of Trent Henry and Tim Chou have balances of $142,900 and $85,800, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $31,400 and one-fourth of Chou's interest for $20,200. Clarke contributes $74,500 cash to the partnership, for which she is to receive an ownership equity of $74,500. Required: A. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the Chart of Accounts for exact wording of account titles. B. What are the capital balances of each partner after the admission of the new partners?
The E.N.D. partnership has the following capital balances as of the end of the current year: $ 190,000 170,000 Pineda Adams Fergie 160,000 Gomez 150,000 Total capital $ 670,000 Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $203,000 based on the terms the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $290,000 based on the terms the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (D not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) Capital Balance a. Pineda Adams Gomez b. Adams Fergie Gomez