acc Case 1. Admission of new partnerThe capital account balances of the following partners follow:Joey (25%) - 250,000Ermita (25%) - 350,000Soila (50% - 450.000They agreed to sell one-fourth of their capital to partner Janeth for P300,000Required: Prepare journal entry for admission of new partnerCase 2. Withdrawal of a PartnerAbdul, Jonathan And Christy are partners engaged in book distribution. They share profits and losses inthe ratio of 30%:30 %:40 %. Analyn decided to withdraw from the partnership at a time when the records ofcapital balances were as follows:AbdulBeginning balancesWithdrawals300,000CapitalP/L ratioLizaAdditional Investments 200,000200,000Required: Journalize the withdrawal of Christy from the partnership if she is to receive 250,000P240,000400,000100,000Case 3.The partnership of Liza and Wendy has been successful in its operation for operation for yearsnow. Their respective capital balances and profit and loss agreement that is contained in theArticleof Co-Partnership follows:3JonathanShiela invests P300,000 for a 40 % interest in the new firm.Prepare Journal entry for the admission of new partnerChristyWendyP260,000P300,00050,0005TRUE OR FALSE1. Only admission of a new partner by purchase of interest necessitates adjustments on non-currentassets to its fair market value.2. There can be partnership dissolution without liquidation but no liquidation without dissolution

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Case 1. Admission of new partner The capital account balances of the following partners follow: Joey (25%) - 250,000 Ermita (25%) - 350,000 Soila (50%-450,000 They agreed to sell one-fourth of their capital to partner Janeth for P300,000 Required: Prepare journal entry for admission of new partner

Case 1. Admission of new partner The capital account balances of the following partners follow: Joey (25%) - 250,000 Ermita (25%) - 350,000 Soila (50%-450,000 They agreed to sell one-fourth of their capital to partner Janeth for P300,000 Required: Prepare journal entry for admission of new partner

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 65P

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The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.
The partnership of Arun, Margot, and Tammy has been doing well. Arun wants to retire and move to another state for a once-in-a-lifetime opportunity. The partners capital balances prior to Aruns retirement are $60,000 each. Prepare a schedule showing how Aruns withdrawal should be divided assuming his buyout is: A. $70,000 B. $45,000 C. $60,000. In addition, show the resulting entries to the capital accounts of each of the three.
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= Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Elayne Summers and Murv Newcomb have balances of $99,000 and $149,000, respectively. Rose Clayton is to be admitted to the partnership, contributing $66,000 cash to the partnership, for which she is to-receive an ownership equity of $86,000. All partners share equally in income. a. Journalize the entry to record the admission of Rose Clayton, who is to receive a bonus of $20,000. If an amount box does not require an entry, leave it blank. b. What are the capital balances of each partner after the admission of the new partner? Partner ▼ Elayne Summers Murv Newcomb Rose Clayton $ Balance c. Why are tangible assets adjusted to current market prices prior to admitting a new partner? Tangible assets should be adjusted to current market prices so that the new partner being admitted. For example, if the market price of land doubled prior to admitting…
Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Elayne Summers and Murv Newcomb have balances of $116,000 and $197,000, respectively. Rose Clayton is to be admitted to the partnership, contributing $78,000 cash to the partnership, for which she is to receive an ownership equity of $101,000. All partners share equally in income. a. Journalize the entry to record the admission of Rose Clayton, who is to receive a bonus of $23,000. If an amount box does not require an entry, leave it blank. b. What are the capital balances of each partner after the admission of the new partner? Partner ▼ Elayne Summers Murv Newcomb Rose Clayton Balance c. Why are tangible assets adjusted to current market prices prior to admitting a new partner? Tangible assets should be adjusted to current market prices so that the new partner any gains or losses from changes in market prices prior to being admitted. For example,…
Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Elayne Summers and Murv Newcomb have balances of $82,000 and $131,000, respectively. Rose Clayton is to be admitted to the partnership, contributing $55,000 cash to the partnership, for which she is to receive an ownership equity of $72,000. All partners share equally in income. a. Journalize the entry to record the admission of Rose Clayton, who is to receive a bonus of $17,000. If an amount box does not require an entry, leave it blank. Cash Elayne Summers, Capital Murv Newcomb, Capital Rose Clayton, Capital Feedback ►Check My Work b. What are the capital balances of each partner after the admission of the new partner? Partner Elayne Summers Murv Newcomb Rose Clayton 55,000 $ Balance 94,500 X $ 143,500 X 30,000 X
Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Brad Paulson and Drew Webster have balances of $87,000 and $148,000, respectively. Austin Neel is to be admitted to the partnership, contributing $58,000 cash to the partnership, for which he is to receive an ownership equity of $75,000. All partners share equally in income. a. Journalize the entry to record the admission of Neel, who is to receive a bonus of $17,000. For a compound transaction, if an amount box does not require an entry, leave it blank. b. What are the capital balances of each partner after the admission of the new partner? Partner Brad Paulson Drew Webster Austin Neel Balance c. Why are tangible assets adjusted to current market prices prior to admitting a new partner? Tangible assets should be adjusted to current market prices so that the to being admitted. does not share in any gains or losses from changes in market prices
Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $93, 000 and $ 130,000, respectively. Lewan Gorman is to be admitted to the partnership, contributing $62,000 cash to the partnership, for which he is to receive an ownership equity of $81,000. All partners share equally in income. Question Content Area a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $19,000. If an amount box does not require an entry, leave it blank. blank Cash 62,000 Lewan Gorman, Drawing 81,000 Harry Barge, Capital 19,000 Lewan Gorman, Capital 81,000 Question Content Area b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson Sfill in the blank a4bbb009305cfea_1 155,000 Harry Barge Sfill in the blank a4bbb009305 cfea_2 11,000 Lewan Gorman Sfill in the blank a4bbb009305cfea_3…
Required: preparea. Revaluation account b. Goodwill account c. Retiring partner's (Inie) account
Admitting New Partners 1. Prepare general journal entries showing the transactions admitting Bridges and Terrell to the partnership. If an amount box does not require an entry, leave it blank. 2. Calculate the ending capital balances of all four partners after the transactions. Jeff Bowman and Kristi Emery, who have ending capital balances of $100,900 and $53,500, respectively, agree to admit two new partners to their business on August 18, 20--. Dan Bridges will buy one-fifth of Bowman’s capital interest for $28,580 and one-fourth of Emery’s capital interest for $30,325. Payments will be made directly to the partners. Anna Terrell will invest $58,905 in the business, for which she will receive a $58,905 capital interest