exter Thomas and Herman Walker, attorneys, operate a law practice. They would like to expand the expertise of the anticipation of this, they have agreed to admit Jewell Lorenzo to the partnership on January 1, 20X1. The capital acco January 1, 20X1, after revaluation of assets, are Thomas, $179,000, and Walker, $139,000. Net income or net loss is sh Required: Prepare the entries in general journal form to record the admission of Lorenzo to the partnership on January 1, 20X1, un following independent conditions: 1. Thomas sells one-half of his interest in the partnership to Lorenzo for $127,000 cash. 2. Thomas sells one-half of his interest in the partnership to Lorenzo for $83,000 cash. 3. Lorenzo invests $119,000 in the business for a 25 percent interest in the partnership. 4. Lorenzo invests $123,000 in the business for a 30 percent interest in the partnership. Analyze: Assume that Lorenzo in

exter Thomas and Herman Walker, attorneys, operate a law practice. They would like to expand the expertise of the anticipation of this, they have agreed to admit Jewell Lorenzo to the partnership on January 1, 20X1. The capital acco January 1, 20X1, after revaluation of assets, are Thomas, $179,000, and Walker, $139,000. Net income or net loss is sh Required: Prepare the entries in general journal form to record the admission of Lorenzo to the partnership on January 1, 20X1, un following independent conditions: 1. Thomas sells one-half of his interest in the partnership to Lorenzo for $127,000 cash. 2. Thomas sells one-half of his interest in the partnership to Lorenzo for $83,000 cash. 3. Lorenzo invests $119,000 in the business for a 25 percent interest in the partnership. 4. Lorenzo invests $123,000 in the business for a 30 percent interest in the partnership. Analyze: Assume that Lorenzo in

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 2BCRQ

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Dexter Thomas and Herman Walker, attorneys, operate a law practice. They would like to expand the expertise of their firm. In anticipation of this, they have agreed to admit Jewell Lorenzo to the partnership on January 1, 20X1. The capital account balances on January 1, 20X1, after revaluation of assets, are Thomas, $179,000, and Walker, $139,000. Net income or net loss is shared equally. Required: Prepare the entries in general journal form to record the admission of Lorenzo to the partnership on January 1, 20X1, under each of the following independent conditions: 1. Thomas sells one-half of his interest in the partnership to Lorenzo for $127,000 cash. 2. Thomas sells one-half of his interest in the partnership to Lorenzo for $83,000 cash. 3. Lorenzo invests $119,000 in the business for a 25 percent interest in the partnership. 4. Lorenzo invests $123,000 in the business for a 30 percent interest in the partnership. Analyze: Assume that Lorenzo invests $119,000 in the business for a…
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Dexter Thomas and Herman Walker, attorneys, operate a law practice. They would like to expand the expertise of their firm. In anticipation of this, they have agreed to admit Jewell Lorenzo to the partnership on January 1, 20X1. The capital account balances on January 1, 20X1, after revaluation of assets, are Thomas, $340,000, and Walker, $300,000. Net income or net loss is shared equally. Required:Prepare the entries in general journal form to record the admission of Lorenzo to the partnership on January 1, 20X1, under each of the following independent conditions: Thomas sells one-half of his interest in the partnership to Lorenzo for $276,000 cash. Thomas sells one-half of his interest in the partnership to Lorenzo for $188,000 cash. Lorenzo invests $260,000 in the business for a 25 percent interest in the partnership. Lorenzo invests $268,000 in the business for a 30 percent interest in the partnership. Analyze:Assume that Lorenzo invests $260,000 in the business for a 25 percent…
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Higgins is admitted to the partnership of Rengel & Novak. Prior to her admission, the partnership books show Rengel's capital balance at $160,000 and Novak's at $80,000. Assume Rengel and Novak share profits and losses equally. Read the requirements. .... . Requirement 1. Compute each partner's equity on the books of the new partnership under the following plans: a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. Begin by computing the partner's equity base for plan a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. (Enter a share for each partner. Complete all answer boxes. For accounts with a $0 balance, make sure to enter "0" in the appropriate cell. Enter negative amounts with a parentheses or minus sign.) Plan A Rengel Novak Higgins Plan A: Partnership capital before admission of Higgins Requirements Plan A: Effect on capital balance as a result of admission of Higgins Plan A: Partnership capital after admission of Higgins 1. Compute…
After the tangible assets have been adjusted to fair values, the capital accounts of Rey Refozar and Rogelio Ceradoy have balances of P75,000 and P125,000, respectively. Bexel Manongsong is to be admitted to the partnership, contributing P50,000 cash to the partnership, for which he is to receive an equity of P65,000. All partners share equally in profit. Required: 1. Prepare the journal entry to record the admission of Manongsong who is to receive a bonus of P15,000. 2. Calculate the capital balances of each partner after the admission of the new partner.
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $76,000 and $122,000, respectively. Lewan Gorman is to be admitted to the partnership, contributing $51,000 cash to the partnership, for which he is to receive an ownership equity of $66,000. All partners share equally in income. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $15,000. 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 Balance Grayson Jackson Harry Barge Lewan Gorman 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, if the market price of land doubled prior to admitting…
= Homnes is admitted to the partnership of Rose & Novak. Prior to Hornes' admission, the partnership books show Rose's capital balance at $170,000 and Novak's at $85,000. Assume Rose and Novak share profits and losses equally. Read the requirements. Requirement 1. Compute each partner's equity on the books of the new partnership under the following plans: a. Hornes pays $100,000 for Novak's equity. Hornes pays Novak directly. Begin by computing the partner's equity base for plan a. Homes pays $100,000 for Novak's equity. Hornes pays Novak directly. (Enter a share for each partner. Complete all input fields. For accounts with a $0 balance, make sure to enter "0" in the a field. Enter negative amounts with a parentheses or minus sign.) Plan A Plan A: Partnership capital before admission of Hornes Plan A: Effect on capital balance as a result of admission of Hornes Plan A: Partnership capital after admission of Hornes b. Hornes contributes $85,000 to acquire a 1/4 interest in the…