Hannah Freeman and Hugo Hernandez form a partnership by combining assets of theirformer businesses. The following balance sheet information is provided by Freeman,sole proprietorship:Hannah Freeman ProprietorshipBalance SheetJune 1, 20Y3$ 65,000CashAccounts receivable$125,000Less: Allowance for doubtful accounts7,200117,800Land215,000$ 78,000EquipmentLess: Accumulated depreciation-equipment41,00037,000Total assets$434,800$ 24,800Accounts payableNotes payableHannah Freeman, capital76,000334,000Total liabilities and owner's equity$434,800Freeman obtained appraised values for the land and equipment as follows:Land$320,000Equipment34,800An analysis of the accounts receivable indicated that the allowance for doubtful accountsshould be increased to $9,500.Journalize the partnership's entry for Freeman's investment.

Partnership: It is a form of an organization which is owned and managed by two or more persons who…

Answered: Hannah Freeman and Hugo Hernandez form…

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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This year Sheila's income from her partnership is $225.000 Sheila's business deductions from the partnership total $440,000. Sheila also earns $170,000 of W-2 income and has $65,000 of investment income What is the amount of the excess business loss that is carried forward as a NOL? A.$0 B. $150.000 C. $200.000 D. $216.000
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4 Assume the following information just prior to the admission of new partner I: Assets Cash Accounts receivable Partner CH- $ 5,000 43,000 G H 7. New partner I contributes land with a fair value of $100,000. Relative ownership interests after this transaction are: Liabilities Accounts payable G, Capital H, Capital $48,000 Required: Prepare journal entries to record the following unrelated scenarios: 5. New partner I purchases partners G's partnership interest for $40,000. 6. New partner I receives a cash bonus of $2,000 and a one-tenth ownership share, allocated equally from the partnership interests of G and H. Ownership interest 20% 5% 75% 100% Partners' Capital $30,000 10,000 $ 8,000 40,000 $48,000
Instructions Instructions Chart of Accounts General Journal Gavin invested $42,000 in the Jason and Kelly Partnership for ownership equity of $42,000. Prior to the investment, land was revalued to a market value of $412,000 from a book value of $211,000 Jason and Kelly share net income in a 1:2 ratio. Required: a. Provide the journal entry for the revaluation of land. b. Provide the journal entry to admit Gavin." *Refer to the Chart of Accounts for exact wording of account titles.
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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. $
1 John and Mary are equal partnership in a partnership. John's beginning basis is 50,000 and Mary's beginning basis is 70,000 Sales 200,000 Long term capital gain Short term capital loss 6,000 -4,000 Dividend income 2,000 salaries 50,000 Rent Expense 20,000 Interest income 5,000 Depreciation Section 179 expense 30,000 20,000 Distribution to Mary 40,000 Distrbution to John 30,000 1 Calculate ordinary income 2 Calculate Separately Reported Items 3 Calculate ending basis for John and Mary.
The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: Assets Cash Accounts Receivable (net) Inventories Property, Plant and Equipment (net) Total Assets Liabilities and Capital Liabilities: Accounts Payable Capital: Carlos, Capital Dan, Capital Gail, Capital Total Capital Total Liabilities and Capital CDG PARTNERSHIP Balance Sheet At December 1, 20x6- Personal assets. Personal liabilities Personal net worth Preliquidation balances Sale of assets and distribution of loss Additional Information 1. Each partner's personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow: Cash contributed by Gail to extent of positive net worth Distribution of deficit of insolvent partner Contribution by Dan to remedy deficit Payment to creditors Carlos $ 266,000 (238,000) $ 28,000 Payment to partner Postliquidation balances $136,000 66,000 76,000 2. Carlos, Dan, and Gail share…

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