Andy and lan formed a partnership on April 1, 2017. Andy contributes equipment to the business that originally cost $82,000 and on which accumulated depreciation of $16,000 hasndy contributesbeen recorded. The current market value of the equipment is $74,000. The value of the equipment recorded in the partnership journal isOA. $74,000O B. $66,000O C. $82,000OD. $58,000

The objective of the question is to determine the value of the equipment that will be recorded in…

Answered: Andy and lan formed a partnership on…

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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Edward Chance sold his 1/3 interest in CCS Partnership to Greg Randall for $112,000 cash on January 1, 2022. Chance’s basis in the partnership interest was $90,000 on the date of the sale. An analysis of the financial records of the partnership revealed the following: Asset A/B FMV Accounts Receivable $0 $15,000 Inventory $80,000 $89,000 Equipment $190,000 $232,000 What is Chance’s recognized gain on the sale of his partnership interest? What is the character(s) of his gain on the sale?
Sable Kurt and Todd White are forming a partnership to develop a theme park near Bay City, Florida. Kurt contributes cash of $4,000,000 and land with a current market value of $13,500,000 When Kurt purchased the land in 2013, its cost was $7,500,000. The partnership will assume Kurt's $4,750,000 note payable on the land. White contributes cash of $6,000,000 and equipment with a current market value of $7,500,000 Requirements 1. Journalize the partnership's receipt of assets and liabilities from Kurt and from White 2. Compute the partnership's total assets, total liabilities, and total partners' equity immediately after organizing Requirement 1. Journalize the partnership's receipt of assets and liabilities from Kurt and from White (Record debits first, then credits. Select the explanation on the last line of the journal entry table
Subject :- Accounting
On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P300,000, P500,000 and P200,000. A is appointed as managing partner. During 2018, A, B and C made additional investments of P500,000, P200,000 and P300,000, respectively. At the end of 2018, A, B and C made drawings of P200,000, P100,000 and P400,000, respectively. At the end of 2018, the capital balance of C is reported at P320,000. The profit or loss agreement of the partners is as follows: • 10% interest on original capital contribution of the partners. • Quarterly salary of P40,000 and P10,000 for A and B, respectively. • Bonus to A equivalent to 20% of Net Income after interest and salary to all partners • Remainder is to be distributed equally among the partners. What is the partnership profit for the year ended December 31, 2018? P900,000 P1,020,000 P1,050,000 P960,000
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On July 1, 2020, Wency and William agreed to form a partnership from their respective proprietorship businesses and to share profits equally. Wency and William’s balance sheet before the formation were: Wency William Cash P 6,000 P 15,000 Accounts receivable 36,000 21,000 Merchandise inventory 99,000 126,000 Prepaid rent 12,000 Store equipment 120,000 90,000 Accum. Depreciation ( 45,000) ( 54,000) Building 375,000 Accum. Depreciation (75,000) Land 180,000 - Totals P 696,000 P 210,000 Accounts payable P 22,500 P 9,000 Mortgage payable 180,000 - Capital 493,500 201,000 Totals P 696,000 P 210,000 The fair values of Wency’s and William’s assets were: Wency William Merchandise inventory P 81,000 P 135,000 Prepaid rent - 0 Store equipment 45,000 19,500 Building 750,000 -…
Bulan, Bustos, and Bucao formed a partnership on January 1, 2009 and contributed P150,000, P200,000, and P250,000, respectively. The Articles of Co-Partnership provide that the operating income be shared among the partners as follows: As salary: Bulan – P24,000; Bustos – P18,000; Bucao – P12,000; interest of 12% on the average capital during 2009 of the three partners; the remainder will be divided in the ratio of 2:4:4, respectively. Additional information: a. Operating income for the year ended December 31, 2009 is P180,000. b. Bulan contributed additional capital of P30,000 on July 1, and made drawing of P10,000 on October 1. c. Bustos contributed capital of P20,000 on August 1 and made withdrawal of P10,000 on October 1. d. Bucao made withdrawal of P30,000 on November 1. The division of the P180,000 operating income for Bucao will be: _____________
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In January 2018, Nick Marasigan and Dems Asacta agreed to purchase and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P 2,200,000 and P 1,400,000, respectively. The partnership had profits of P480,000 during 2018 but was less successful during 2019, when profit was only P400,000. Required:1. Prepare the journal entry to record the investment of both partners in the partnership.2. Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions:a. The partners agreed to share profit equally.b. The partners failed to agree on a profit-sharing arrangement.c. The partners agreed to share profit according to the ratio of their original investments.d. The partners agreed to share profits by allowing interest of 10% on their original investments and dividing the remainder equally.e. The partners agreed to share profits by allowing salaries of P400,000 for Marasigan…
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