Exercise 12-3 (Algo) Journalizing partnership formation LO P1 Moss and Barber organize a partnership on January 1. Moss's initial net investment is $83,000, consisting of cash ($24,000), equipment ($76,000), and a note payable reflecting a bank loan for the new business ($17,000). Barber's initial investment is cash of $34,000. Prepare journal entries to record (1) Moss's investment and (2) Barber's investment. View transaction list Journal entry worksheet A B < Record the initial investment of Moss. Note: Enter debits before credits. Transaction (1) Record entry General Journal Clear entry Debit Credit View general journal

Exercise 12-3 (Algo) Journalizing partnership formation LO P1 Moss and Barber organize a partnership on January 1. Moss's initial net investment is $83,000, consisting of cash ($24,000), equipment ($76,000), and a note payable reflecting a bank loan for the new business ($17,000). Barber's initial investment is cash of $34,000. Prepare journal entries to record (1) Moss's investment and (2) Barber's investment. View transaction list Journal entry worksheet A B < Record the initial investment of Moss. Note: Enter debits before credits. Transaction (1) Record entry General Journal Clear entry Debit Credit View general journal

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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Financial Statements for Partnership The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y2: Ramirez and Xue Trial Balance December 31, 20Y2 Debit Balances Credit Balances Cash 50,400 Accounts Receivable 48,000 Supplies 1,800 Land 120,000 Building 132,000 Accumulated Depreciation—Building 75,000 Office Equipment 55,200 Accumulated Depreciation—Office Equipment 23,300 Accounts Payable 35,800 Salaries Payable 3,800 Camila Ramirez, Capital 120,000 Camila Ramirez, Drawing 54,000 Ping Xue, Capital 72,000 Ping Xue, Drawing 78,000 Professional Fees 436,800 Salary Expense 175,200 Depreciation Expense—Building 17,400 Heating and Lighting Expense 8,600 Depreciation Expense—Office Equipment 5,400 Property Tax Expense 10,800 Supplies Expense 6,200…
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Case 1 Mazin, Mansoor and Malik started a partnership firm on January 1, 2019. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Mazin is to be paid salary of RO. 12000 p.a. and Mansoor commission of RO. 2,500 every 6 months. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4,000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO.180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on the above information answer the following ‘3’ questions. (Do not upload any documents in the moodle) 31. Identify which one of the following accounting entry for payment…
Homework Activity 2 A B and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1st Jan 2019, their capital balances are: A 30,000 B 20,000 C 10,000 The terms of partnership provides that All partners are eligible for interest on capital @6% All partners are liable to pay interest on drawings @ 4% All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31st Dec 2019 before making the above terms was 18,000. The drawings of the partners were: A 3,000 B 2,000 C 1,000 You are requested to prepare Profit and Loss Appropriations Account Capital accounts of three partners under fluctuating capital method
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Problem 19.5A (Algo) Accounting for revaluation of assets and liabilities of a partnership, investment of a new partner, and withdrawal of a partner. LO 19-6, 19-8, 19-9 The balance sheet of Adams Pharmacy after the revenue, expense, and partners’ drawing accounts have been closed on December 31, 20X1, follows: ADAMS PHARMACY Balance Sheet December 31, 20X1 Assets Cash $83,100 Accounts Receivable 16,700 Merchandise Inventory 430,500 Equipment $171,000 Accumulated Depreciation—Equipment 99,500 71,500 Building 414,000 Accumulated Depreciation—Building 327,000 87,000 Land 47,000 Total Assets $735,800 Liabilities and Partners' Equity Liabilities Accounts Payable $411,900 Taxes Payable 22,900 Total Liabilities 434,800 Partners’ Equity Larry Adams, Capital $167,000 Hazel…
Financial Statements for Partnership The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y2: Ramirez and Xue Trial Balance December 31, 20Y2 Debit Balances Credit Balances Cash 40,700 Accounts Receivable 38,800 Supplies 1,500 Land 97,000 Building 105,600 Accumulated Depreciation—Building 60,600 Office Equipment 44,600 Accumulated Depreciation—Office Equipment 18,800 Accounts Payable 28,900 Salaries Payable 3,100 Camila Ramirez, Capital 100,000 Camila Ramirez, Drawing 43,700 Ping Xue, Capital 58,200 Ping Xue, Drawing 63,100 Professional Fees 349,200 Salary Expense 141,600 Depreciation Expense—Building 14,100 Heating and Lighting Expense 7,000 Depreciation Expense—Office Equipment 4,400 Property Tax Expense 8,700 Supplies Expense 5,000…
QUESTION 1 Kumaresan and Cheng are watch repairmen who want to form a partnership and open a jewellery store. An attorney prepares their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value. The assets contributed by each partner and the liabilities assumed by the partnership are as the following: Assets Kumaresan Cheng Total 40,000 52,000 4,000 1,000 20,000 30,000 20,000 3,000 500 70,000 72,000 7,000 1,500 30,000 Cash Accounts receivable Allowance for uncollectable accounts Supplies Equipment Liabilities Accounts payable 10,000 32,000 9,000 41,000 REQUIRED: Prepare the journal entries necessary to record the original investments of Kumaresan and Cheng in the partnership.
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Problem 2 At April 30, partnership capital of EASCY ANG BM 99.5 Company are Mr. Easy P 52,000, Mr. Ang, P 48,000 and Mr. BM 99.2 P 18,000. The income sharing ratios are 5:4:1, respectively. On May 1, the EASY ANG BM 99.2 Company is formed by admitting Mr. PAPASA AKO to the firm as a partner. Instructions a. Journalize the admission of Mr. PAPASA AKO under each of the following independent assumptions. 1. Mr. PAPASA AKO purchase 50% of Mr. BM 99.2's ownership interest by paying him P 16,000 in cash. a. Mr. PAPASA AKO purchase 33 1/3% of Mr. Ang's ownership interest by paying him P 15,000 in cash b. Mr. PAPASA AKO invest P 62,000 ofr a 30% ownership interest, and bonuses are given to the old partners. C. Mr.PAPASA AKO invest P 42,000 for a 30% ownership interest, which includes a bonus to the new partner. 2. Mr. Ang's capital balance is P 32,000 after admitting Mr. PAPASA AKO to the partnership by investment. IF Mr. Ang's ownership interest is 20% of total partnership capital, what were…
SCO PROFESSOR: NAME: SECTION: Problem #20 Withdrawal of a Partner position for the partnership on that date follows: Cebedo, Basa and Ibrahim Statement of Financial Position July 10, 2019 Liabilities and Partners' Capital 骨 Assets P 74,000 36,000 135,000 30,000 P275,000 Liabilities P 45,000 120,000 Cash Trade Accounts Receivable (net) Plant Assets (net) Goodwill (net) Cebedo, Capital Basa, Capital Ibrahim, Capital 60,000 50,000 P275,000 Total Total Required: Prepare the journal entries to record Ibrahim's withdrawal under each of the following assumptions: 1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital account balance is recorded as a bonus to Ibrahim from Cebedo and Basa. 2. Ibrahim is paid P45,000, and the difference is recorded as a bonus to Cebedo and Basa from Ibrahim. * 1oranim accepted cash of P40,500 and plant assets (equipment) with a current fair value of P9,000. The equipment had cost P30.000 and was 60% depreciated, with sidual value (Record…