Benson and Orton are partners who share income in the ratio of 2:3 and have capital balances of$60,000 and $40,000 respectively. Ramsey is admitted to the partnership and is given a 10%What is Orton's capital balance after admitting Ramsev3.interest by investing $20,000.$44,800b. $35,200$20,000d. $16,000a.c.ChallengingBloom's: ApplicationOBJ:LO: 12-03DIF:PTS: 1ANS:KEY:NAT: BUSPROG: Analytic

Determine new partnership capital in total.

Answered: Benson and Orton are partners who share…

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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PARTNERSHIP Kindly provide a clear solution. Thank you!
Admitting New Partners Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $210,000 and $88,000, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. a. What entry is required by the partnership if the sales price is $60,000? If an amount box does not require an entry, leave it blank. Myles Etter, Capital - V Lonnie Davis, Capital Feedback Chack My Work a. The sales price is not a partnership transaction, but a private transaction between the two partners. b. What entry is required by the partnership if the sales price is $80,000? If an amount box does not require an entry, leave it blank. 88 Myles Etter, Capital Lonnie Davis, Capital Feedback Check My Work
Part 4 In the ABC partnership, the capital balances of Albert, Bert, and Connell, who share income in the ratio of 5:3:2, are: Albert Bert Connell $ 500,000 300,000 200,000 a) Daniel wishes to be admitted to the partnership and have a 20 percent interest. The partnership agrees to admit Daniel with a $275,000 investment and Goodwill to be recorded to prior partners. What is the journal entry needed to admit Daniel? Show calculations. b) If, instead, Daniel invests $250,000 for a 20 percent interest, resulting in total capital of the partnership being $1,250,000. No Goodwill is recorded and any Bonus is applied to prior partners. What is the journal entry needed to admit Daniel? Show calculations. c) If, instead, Daniel pays $300,000 directly to Albert for a 20% interest in the partnership. Daniel is assigned his 20% ownership solely from Albert's capital account.
Alpha and Beta are partners who share income in the ratio of 12 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. Noncash assets with a book value of $110,000 are sold for $50.000. What amount of loss on realization should be allocated to Alpha? O a. $50,000 O b. $60,000 O c. $30,000 O d. s20,000 eft 0:55:16
Solve the problem correctly.
H1. Stock investment is NOT 2,540 and land is NOT 10,200.
Urbana, Victoria and Warlita are professional makeup artists and hairdressers. They formed a partnership agreeing to invest cash that will satisfy the desired capital ratio of 2:3:3, respectively. How much was invested by Warlita if the net assets of the partnership immediately after formation amount to P 500,000? Group of answer choices P 187,500 P 100,000 P 150,000 P 125,500
9. Marty (M) retires from MNO partnership, an accounting firm. The partnership has the following balance sheet: Asset Cash Accounts rec. Land Total FMV AB $240,000 $240,000 $300,000 $0 Liab/Equity Capital, M Capital N $360,000 $60,000 Capital O $900,000 $300,000 Total The partnership pays Marty $150,000 a year for 2 years. a. What are the consequences to Marty in Year 17 FMV $300,000 $300,000 $300,000 AB $100,000 $100,000 $100,000 $900,000 $300,000
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?
D1.
4 Assume the following information just prior to the admission of new partner I: Assets Cash Accounts receivable Partner CH- $ 5,000 43,000 G H 7. New partner I contributes land with a fair value of $100,000. Relative ownership interests after this transaction are: Liabilities Accounts payable G, Capital H, Capital $48,000 Required: Prepare journal entries to record the following unrelated scenarios: 5. New partner I purchases partners G's partnership interest for $40,000. 6. New partner I receives a cash bonus of $2,000 and a one-tenth ownership share, allocated equally from the partnership interests of G and H. Ownership interest 20% 5% 75% 100% Partners' Capital $30,000 10,000 $ 8,000 40,000 $48,000
Required information Skip to question In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following questions is independent of the others. Refer to the information provided above. David invests $50,000 for a one-fifth interest. What amount of goodwill will be recorded? Multiple Choice A. $4,000 B. $20,000 C. $40,000 D. $15,000

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