part d Ann, Bill, Carl and Dawn have the following partnership business:AssetsLiabilities and equitiesCash$55,000Liabilities$40,000Current assets30,000205,000Ann, capitalBill, capital60,000Land70,000Carl, capitalDawn, capitalTotal Liab. and Eq's90,000140,000Building and Equip't110,000Total assets$400,000$400,000The partners share profits and losses equally.Provide the partners' ending capital balances in each of the followingindependent situations.a.Elmore is added to the partnership after contributingS80,000to the business. No goodwill or bonus is recorded.b.Elmore contributes $100,000 in cash to the business andreceives a 20% interest in the partnership. Elmore's $100,000 investment isconsidered 20% of the new business's value, so goodwill may need to berecorded. (Elmore's capital balance will be exactly $100,000.)c.Elmore is added to the partnership and receives 20% of each partner's$39,000 directly to each ofinterest in the business after payingthe four partners. No goodwill is recorded.d.Carl retires and has been paid110% of his capital balanceaccording to the terms of the original partnership agreement. The bonusmethod is used.

Partnership business includes joining of hands by two or more partners by sharing profit and losses.…

Ann, Bill, Carl and Dawn have the following partnership business: Assets Liabilities and equities Cash $40,000 $55,000 30,000 Liabilities Current assets Ann, capital Bill, capital Carl, capital Dawn, capital Total Liab. and Eq's 60,000 Land 205,000 70,000 90,000 Building and Equip't 110,000 $400,000 140,000 $400,000 Total assets The partners share profits and losses equally. Provide the partners' ending capital balances in each of the following independent situations. Elmore is added to the partnership after contributing $80,000 a. to the business. No goodwill or bonus is recorded. Elmore contributes $100,000 in cash to the business and receives a 20% interest in the partnership. Elmore's $100,000 investment is considered 20% of the new business's value, so goodwill may need to be b. recorded. (Elmore's capital balance will be exactly $100,000.) Elmore is added to the partnership and receives 20% of each partner's $39,000 directly to each of c. interest in the business after paying the four partners. No goodwill is recorded. d. Carl retires and has been paid 110% of his capital balance according to the tems of the original partnership agreement. The bonus method is used.

Ann, Bill, Carl and Dawn have the following partnership business: Assets Liabilities and equities Cash $40,000 $55,000 30,000 Liabilities Current assets Ann, capital Bill, capital Carl, capital Dawn, capital Total Liab. and Eq's 60,000 Land 205,000 70,000 90,000 Building and Equip't 110,000 $400,000 140,000 $400,000 Total assets The partners share profits and losses equally. Provide the partners' ending capital balances in each of the following independent situations. Elmore is added to the partnership after contributing $80,000 a. to the business. No goodwill or bonus is recorded. Elmore contributes $100,000 in cash to the business and receives a 20% interest in the partnership. Elmore's $100,000 investment is considered 20% of the new business's value, so goodwill may need to be b. recorded. (Elmore's capital balance will be exactly $100,000.) Elmore is added to the partnership and receives 20% of each partner's $39,000 directly to each of c. interest in the business after paying the four partners. No goodwill is recorded. d. Carl retires and has been paid 110% of his capital balance according to the tems of the original partnership agreement. The bonus method is used.

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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