1. Fren, Goy, and Voy are allies who share the profits 2:2:1 each. The partners decide toliquidate the partnership firm. The partnership book of the firm reports the followingbalances relating to the land and buildings of the partnership firm,$15,000Mortgage debt(secured by landand buildings)Accrued mortgageLand$16,000Building25,000160interestLess: Accumulated7,500 17,500depreciationThe land and buildings are valued at a market price of $20,000, and Fren agrees to take overthe property at that value. He also agreed to assume all obligations for this property. Recordthis take in the firm's fellowship book.

Partnership business means where two or more person comes together to do the business and share…

Answered: Fren, Goy, and Voy are allies who share…

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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The following account balances were taken from the books of Aztra, a sole proprietor before admitting Nica to form a partnership. Accounts Receivable Php 50,000 1,000 60,000 20,000 30,000 59,000 Allowance for bad debts Equipment Accum. Depreciation – Equipment Notes Payable Aztra, Capital Aztra admits Nica as a partner in the partnership with a total agreed capitalization of Php 200,000. Nica contributes cash that will give her 50% claim in the partnership. Aztra is to invest additional cash after the partnership's assets and liabilities are to be adjusted per agreement as follows: a. The realizable amount of accounts receivable is Php 45,000. b. The equipment is to be stated at its depreciated value of Php 34,000. c. Accrued interest on notes payable should be recognized, Php 1,000. Required: 1. Adjusting entries 2. Journal entries to record the investment of Aztra and Nica in the partnership books.
The partnership of Ace, Ball, Eaton, and Lake currently holds three assets: Cash, $10,000; Land, $35,000; and Building, $50,000. The partnership has no liabilities. The partners anticipate that expenses required to liquidate their partnership will amount to $5,000. Capital balances are as follows: Ace, capital Ball, capital Eaton, capital Lake, capital $ 25,000 28,000 20,000 22,000 The partners share profits and losses as follows: Ace (30 percent), Ball (30 percent), Eaton (20 percent), and Lake (20 percent). If a preliminary distribution of cash is to be made, what is the amount of safe payment that can be made to each partner? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Ace Ball Eaton Lake Safe payments $ 5,000 $ 5,000 $ 3,333 $ 3,333
A&B form a partnership with A being the limited partner (LP)who will invest $150,000 and B being the general partner (GP). The group finds a property for $700,000 and takes a mortgage for $550,000, interest only at 6%. They agree to a 90/10 split on the profits and distributions while the property is owned by the group. Assume the following: Gross Income- $125,000 LESS VACANCY- $6,250 LESS OPERATING EXPENSES - $27,000 What is the capital account of investor A (the LP) $87,000 $97,125 $139,875 $150,000
A local partnership has only two assets (cash of $10,000 and land with a cost of $35,000). All liabilities have been paid and the following capital balances are currently being recorded. The partners share profits and losses as follows. All partners are insolvent. Brown, capital (40%), $25,000; Fish, capital (30%), $15,000 and Stone, capital (30%), $5,000. If the land is sold for $25,000, how much cash does each partner receive in a final settlement? If the land is sold for $15,000, how much cash does each partner receive in a final settlement? If the land is sold for $5,000, how much cash does each partner receive in a final settlement?
Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $47,000 and equipment with a cost of $193,000 and accumulated depreciation of $101,000. The partners agree that the equipment is to be valued at $86,000, that $3,700 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,400 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $28,300 and merchandise inventory of $56,000. The partners agree that the merchandise inventory is to be valued at $60,500. Journalize the entries to record in the partnership accounts (a) Barton's investment and (b) Fallows's investment. If an amount box does not require an entry, leave it blank. (a) fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9…
Partnership of Coco, Piolo, and Daniel and their profit and loss ratios were as follows: Assets $ 1,200,000 Coco, loan $ 60,000 Coco, capital (30%) 280,000 Piolo, capital (30%) 260,000 Daniel, capital (40%) 600,000 Total equities $ 1,200,000 Coco decided to retire from the partnership and by mutual agreement, the assets were adjusted to their current fair value of $1,440,000. The partnership paid $408,000 cash for Coco's equity in the partnership, exclusive of the loan which was repaid in full. Required: Choose the correct answer with solution. 1. The capital balances of Piolo and Daniel, respectively, after Coco's retirement from the partnership was: a. $360,000; $855,000 b. $288,000; $684,000 c. $300,000; $675,000 d. $308,000; $664,000
Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital $ 60,000 27,000 43,000 20,000 Required: Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances $ Chen Korhonen 60,000 $ Lebuca 27,000 $ 43,000 $ Swid 20,000:
Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $50,000 and equipment with a cost of $185,000 and accumulated depreciation of $101,000. The partners agree that the equipment is to be valued at $67,800, that $4,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,800 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $21,500 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500. Journalize the entries in the partnership accounts for (a) Jesse's investment and (b) Tim's investment. If an amount box does not require an entry, leave it blank. a. b.
A and B are combining their separate businesses to form a partnership. Presented here are the Statements of Financial Position before any adjustments: Current Assets Non-current Assets Total Liabilities ● A 617,500 848,000 150,000 B 672,500 970,000 178,000 They agreed to set up P5,000 each as uncollectible accounts on their accounts receivable. They also found out that their Non-current assets (all depreciable assets) were under-depreciated by P80,000 each. The partners agreed to equalize their capital balance upon formation. Compute the total capital of the partnership.
rame and French are in partnership sharing profits and losses in the ratio 3/5: 2/5. respectively y
Individuals A and B carry on business through a partnership. A and B are both active in the business and share profits equally after deducting partner salaries. In the current year the partnership paid salaries of $80,000 to A and $50,000 to В. The partnership reported net income of $ 160,000 after partner salaries. The net income includes a gain of $28, 000 on the sale of non - depreciable Gapital property, $14, 000 of eligible dividends, and a deduction of $2, 000 for charitable donations. Determine A's share of the partnership net income for tax purposes. $
Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital Required: $ 68,000 29,400 51,000 22,400 Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances Chen Korhonen Lebuca Swid $ 68,000 $ 29,400 $ 51,000 $ 22,400

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