Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the William, Jennings, and Bryan partnership: William (45%) Jennings (45%) Bryan (10%) $300,000 250,000 230,000 Darrow invests $345,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill. or other revaluation is to be recorded. After the transaction, what is Jennings's capital balance? Multiple Choice $253,375 $252,250 . $353,500 $250,000
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- Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the William, Jennings, and Bryan partnership: William (40%) $ 170,000 Jennings (40%) 120,000 Bryan (20%) 100,000 Darrow invests $250,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jennings’s capital balance?Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the William, Jennings, and Bryan partnership: William (45%) Jennings (458) Bryan (10%) Darrow invests $425,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jennings's capital balance? Multiple Choice $437,500 $310,000 $314,275 $360,000 310,000 290,000 $312,850Required: 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000. After Pedro’s admission, the profitand loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What isthe capital balance of Pedro after the first year?
- Following are the capital account balances and profit and loss percentages indicated parenthetically) for the Alden, Boyd, and Carmel partnership Alden (40%) Boyd (40%) Carmel (20%) $ 230,000 180,000 160,000 Required: Del Mar trivests $260,000 in cash for a 30 percent ownership Interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, compute Boyd's capital balance. Bonus to onginal partners Boyd's ownership share Boyd's share of bonus Boyd's capital before bonus Boyd's capital after bonus 5 $ 0Hillary Bruce and Cindy own a partnership firm. Hillary has an ownership interest of $24,000, Bruce has an ownership interest of $41,000, and Cindy has an ownership interest of $30,000. In the process of liquidation, the partnership sells non cash assets and registers a gain of $30,000. The profit loss sharing agreement is 1:2:3 respectively. Which of the following is TRUE when a journal entry for the allocation of gain is recorded? A) Hillary Capital is credited for $10,000. B) Cindy, Capital Is credited for $15,000 C) Hillary capital is debited for $10,000. D) Cindy Capital is credited for $ 10,000Newton is a one-third owner of ProRite Partnership. Newton has decided to sell his interest in the business to Dunja for $68,000 cash plus the assumption of his share of ProRite's liabilities. Assume Newton's inside and outside bases in ProRite are equal. ProRite shows the following balance sheet as of the sale date: Assets Cash Receivables Inventory Land Totals Liabilities and capital: Liabilities Capital-Newton Capital-Barbara Capital-Liz Totals Tax Basis $ 96,500 28,000 40, 250 36,500 FMV $ 96,500 28,000 110, 750 23,500 $ 201, 250 $ 258,750 $ 60,000 47,083 47,084 47,083 $ 201, 250 What are the amount and character of Newton's recognized gain or loss?
- The following information was obtained from the records of Alben Traders, a partnership business with Albert and Bennie as partners, after the net profit of /R546 000 was appropriated between the partners: Partners' salaries R480 000; Interest on drawings R6 000; Total share of the remaining loss R48 000. Which of the following reflects the value of the interest on capital? O A. R108 000 OB. R24 000 O C. R120 000 O D. R972 000Matthew and Hein sell to Melges a 1/3 interest in the Matthew - Hein partnership. Melges will pay Matthew and Hein each $141400 for admission into the organization. Before this transaction, Matthew and Hein show capital balances of $209000 each. The journal entry to record the admission of Melges will O show a credit to Melges, Capital for $282800. O show a debit to Hein, Capital for $141400. show a debit to Cash for $282800. O not show a debit to Cash.Jorge, Jamul and Jihad are partners in a Limited partnership. Jorge and Jamil are general partners, while Jihad is a limited partner share capital balance of $50,000, $45,000and $20,000 respectively. Sharing the profits and losses equally, and they liquidated the firm, Realization Account was 90000 debit balance. What is Jorge's share from the firm cash?
- Rodrigo and Harry are both owners of an existing single proprietorship businesses. They agreed to combine their businesses into a partnership. They agreed to start a total capitalization of P400,000 to be contributed equally. Balances per individual Statement of Financial Position Cash Assets Noncash assets Liabilities Equity ● Rodrigo ● 20,000 85,000 105,000 Harry 5,000 135,000 10,000 They also agreed to the following valuation of their businesses' non-cash assets. Noncash assets should be valued at 80%. Liabilities will not be absorbed by the partnership. How much additional cash should be contributed by Rodrigo & Harry respectively? 130,000Item Nos. 17 and 18 are based on the following information: The balance sheet for the partnership of Lia, Mia, and Pia, who share profits in the ratio of 2:1:1, respectively, shows the following balances just before liquidation: Cash P 12,000 Liabilities P 20,000 Noncash Assets- 59,500 Lia Capital --- 22,000 Mia Capital 15,500 Pia Capital--- 14,000 P 71,500 P 71,500 On the first month of liquidation, certain assets were sold for P 32,000. Liquidation expenses of P 1,000 were paid and additional liquidation expenses in the future are still anticipated. Liabilities were paid amounting to P 5,400 and sufficient cash was retained to ensure the payment to creditors before making payments to the partners. On the first payment to partners, Lia received P 6,250. 17. The total cash distributed to the partners in the first installment was: a. P 12,500. C. P 25,000. b. P 20,000. d. P 37,600. 18. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities was: a. P…The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: $ 50,000 75,000 75,000 21,000 $ 54,000 167,000 Cash Liabilities Miller, capital Tyson, capital Watson, capital Other assets Total Total liabilities and $221,000 $221,000 assets capital a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?