Biz Partnership allows partner Mandy to sell her $100,000 equity in the partnership to Brittney. Brittney pays Mandy $85,000. Record the partnership’s journal entry for the sale of Mandy’s interest to Brittney on September 30.
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A: A. Following are the calculation of partnership bonus:
Biz
pays Mandy $85,000. Record the partnership’s
September 30.
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- Bobbi and Stuart are partners. The partnership capital of Bobbi is $50,000 and that of Stuart is $85,600. Bobbi sells his interest in the partnership to John for $57,200. The journal entry for the admission of John as a new partner would include a credit toVictor is a one-third partner in the VRX Partnership, with an outside basis of $228,200 on January 1. Victor sells his partnership interest to Raj on January 1 for $275,000 cash. The VRX Partnership has the following assets and no liabilities as of January 1: (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Basis FMV Cash $ 35,200 $ 35,200 Accounts receivable 0 15,600 Inventory 113,000 133,400 Equipment 272,250 344,550 Stock investment 78,000 108,900 Totals $ 498,450 $ 637,650 The equipment was purchased for $363,000 and the partnership has taken $90,750 of depreciation. The stock was purchased seven years ago. What is the amount and character of Victor's gain or loss on the sale of his partnership interest? Essay Toolbar navigation opens in a dialogThe 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
- 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 partners of the MKR Partnership agree to liquidate their partnership on December 31, 2020. At that point, the accounting records show the following balances: Account Debit Credit Cash $29,000 Notes Payable $15,000 Accounts Receivable 21,000 Accounts Payable 30,000 Allowance for Doubtful Accounts 2,000 Wages Payable 4,000 Merchandise Inventory 36,000 M. Samuels, Capital 25,000 Equipment 18,000 K. Roswell,…On December 31, 2014, LBM Partnership’s accounts show the following. Answer the following questions under the different scenarios. Partner Drawings Capital Lisa $23,000 $48,000 Bart 14,000 30,000 Maggie 10,000 25,000 Scenario1: Net income for the year is $30,000. Income is shared 60% to Lisa, 30% to Bart, and 10% to Maggie. How much is each partner’s share of the income? Lisa Bart Maggie Scenario 2: Net income was $60,000 for the year. Lisa and Bart are each given a $15,000 salary allowance. The remainder is shared equally. Prepare a schedule showing the division of net income. Lisa Bart Maggie Total Salary allowance Remaining income Total division of net income Scenario 3: Net income was $24,000 for the year. Each partner is given a 10% interest on beginning capital balances. Lisa is given a $10,000 salary allowance and $5,000 is…
- ADo not give answer in imageOn November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%, 20% and 60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest? Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances. $636000. $716000. O $0.
- 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.)Current Attempt in Progress Jaime Keller has a $37,720 capital balance in a partnership. She sells her interest to Sam Parmenter for $41,400 cash. What entry is made by the partnership for this transaction? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Haresh G
