Please help me. Thank. Partner BonusHolcomb has a capital balance of $117,000 after adjusting assets to fair market value. Van Ness contributes $68,000 to receive a 40% interest in a new partnership withHolcomb.Determine the amount and recipient of the partner bonus.Amount of bonusRecipient of bonus Van NessFeedbackCheck My WorkDetermine the new total equity after the contribution. Then, compute the new partner's percentage equity interest. If the new partner's equity interest is lessthan the amount paid, then the existing partner received a bonus. If the new partner's equity interest is greater than the amount paid, then the bonus goes to thenew partner.

Partnership: It is the relation between persons who have agreed to share the profits of a business…

Holcomb has a capital balance of $117,000 after adjusting assets to fair market value. Van Ness contributes $68,000 to receive a 40% interest in a new partnership with Holcomb. Determine the amount and recipient of the partner bonus. Amount of bonus. Recipient of bonus Van Ness

Holcomb has a capital balance of $117,000 after adjusting assets to fair market value. Van Ness contributes $68,000 to receive a 40% interest in a new partnership with Holcomb. Determine the amount and recipient of the partner bonus. Amount of bonus. Recipient of bonus Van Ness

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

See similar textbooks

Related questions

Q: Use EMBG's adjusted trial balance to prepare EMBG's balance sheet for the current year-end. EMBG…

A: Definition: Balance sheet: To Know the financial position of the business balance sheet is prepared.…

Q: why are all the answerer are wrong please help

A: Inventory valuation method includes: First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted…

Q: If the company sells produces and sells 3,000 baskets how much operating income will they make A)…

A: Direct material rate per unit = $16,000/2000 = $8 per unit Direct Labour rate per unit =…

Q: Please assist with this problem thank you

A: Partnership can be defined as a form of business organization under which two or more parties come…

Q: understand

A: Sales Discount refers to reduced price offered by a company for sale of product in the market.…

Q: How do I solve these?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Student ID Day 63638034 Monday 23957096 Thursday 28080825 Monday Exam Score 61 70 1. How many…

A: =COUNTIF is used to count the cells satisfying the given criteria in the given range.

Q: Are these written in your own words?

A: Yes the answer is writtern in own words. Please find a alternate answer below

Q: How to solve this problem? How does the answer look all solved? I am struggling to answering this…

A: Multi-step income statement: It is the presentation of a normal income statement in a more detailed…

Q: What is the difference between the Cumberland Gap and GAAP?

A: Answer:- Difference meaning:- Difference is an important notion in philosophy, referring to the…

Q: Thank you so much this is very clea

A: Introduction:- A cash flow statement denotes total amount cash is inflows and cash outflows your…

Q: How would the T Account look?

A: T account is the account which is made by the company for each account in which all the transactions…

Q: I need help with my account

A: what is mean about the question ?Can you upload the question again .thanks ):-

Q: Explain the benefits of postretirement.

A: Post-retirement benefits may include life insurance and medical plans, or premiums for such…

Q: question 33

A: Traditional IRA is one of the plans which are used by the taxpayers so that the tax amount which is…

Q: When preparing a report form of a Balance Sheet for a merchandising business, assume that the…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Give the meaning of Trust.

A: Beneficiary/ Fiduciary Trustee A trust has a beneficiary and a trustee. The individual who is the…

Q: in qyuickbooks Which steps should be followed to set up the different types of payments accepted…

A: Payments Accepted means- Any Payment which will be receivable from the customer on any credit sales…

Q: Please help me with this I'm lost.

A: Comment- Multiple Questions Asked. Utilization Rate- It refers to the performance pointer which is…

Q: Why Empathy Is the Secret to Great Customer Service? and How customer service empathy helps you…

A: Empathy is being aware of and feel other person’s emotions. Empathy is to analyze and recognize the…

Q: What are the advantages and disadvantages of accessing online primary sources?

A: Primary sources are the proof of history, original records or objects created by participants or…

Q: Define advances from customers.

A: Current liability: Current liability is a debt that the companies need to pay the debts from…

Q: What do you understand by crowdfunding?

A: Crowdfunding is a funding method that leverages online platforms to gather small amounts of money…

Q: Plesea better send the questions and align them with the question.

A: The process of comparing and evaluating the operations and results of several firms is known as…

Q: I NEED HELP !

A: Revenue is the amount that a company earns from normal activities conducted by the business for…

Question

Please help me.

Thank.

Partner Bonus
Holcomb has a capital balance of $117,000 after adjusting assets to fair market value. Van Ness contributes $68,000 to receive a 40% interest in a new partnership with
Holcomb.
Determine the amount and recipient of the partner bonus.
Amount of bonus
Recipient of bonus Van Ness
Feedback
Check My Work
Determine the new total equity after the contribution. Then, compute the new partner's percentage equity interest. If the new partner's equity interest is less
than the amount paid, then the existing partner received a bonus. If the new partner's equity interest is greater than the amount paid, then the bonus goes to the
new partner.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Determination of amount of bonus and recipient of bonus

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
The partnership of Arun, Margot, and Tammy has been doing well. Arun wants to retire and move to another state for a once-in-a-lifetime opportunity. The partners capital balances prior to Aruns retirement are $60,000 each. Prepare a schedule showing how Aruns withdrawal should be divided assuming his buyout is: A. $70,000 B. $45,000 C. $60,000. In addition, show the resulting entries to the capital accounts of each of the three.
2. Use the following information for the next three cases: The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of P12,000 and P8,000, respectively. DA bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. Each partner shall receive 10% interest on average capital investments. TAny remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: AP100,000 B 60,000 C 120,000 Case #1: The partnership earns profit of P100,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #2: The partnership earns profit of P10,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #3: The partnership incurs loss of P20,000. Requirement: Compute for the respective shares of the partners on the…
Allocation of bonus to Arun and Margot: Arun Margot C. $50,000 Total capital of Arun and Margot Investment by new partner, Tammy Total capital of new partnership Tammy's capital credit Total bonus to Arun and Margot Prepare the journal entries to show the resulting each of the three partners' capital accounts. If an amount box does not require an entry, leave it blank. A. B. C. %24 %24 %24 %24
The following are the partnership agreement between partners Baby Love & Honey Sweet for their partnership’s profit distribution:A. Each partners shall be entitled for an annual salary of P50,000 each.B. 15% Bonus of partnership profits after salaries to Honey Sweet being a managing partner.C. 20% interest is given to both partners based on average capital ratio.D. Residual profit and loss shall be distributed on the ratio 2:2The ledgers of their capital balances are shown below: Baby Love Debit: July 1. P20,000 Credit: Jan 1. P80,000 Oct 1. P40,000 Honey Sweet Debit: Oct 1. P10,000 Credit: Jan 1. P120,000 May 1. 30,000 The partnership profit for the year is P150,000 before distribution to partners Required: 1. Prepare a Schedule for Profit Distribution.2. Journal entry to record the distribution of profit to partners.
please provide a solution/explanation. thank you!
Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammy's admission are $50,000 each. Question Content Area Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: If an amount is zero, enter "0". A. $5,000 Total capital of Arun and Margot $fill in the blank a9a449fdc04f047_1 Investment by new partner, Tammy fill in the blank a9a449fdc04f047_2 Total capital of new partnership $fill in the blank a9a449fdc04f047_3 Tammy's capital credit $fill in the blank a9a449fdc04f047_4 Total bonus to Arun and Margot $fill in the blank a9a449fdc04f047_5 Allocation of bonus to Arun and Margot: Arun $fill in the blank a9a449fdc04f047_6 Margot $fill in the blank a9a449fdc04f047_7 B. $62,000 Total capital of Arun and Margot $fill in the blank a9a449fdc04f047_8 Investment by new partner,…
The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of 12,000 and ₱ 8,000, respectively. A bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. (Deduct the salaries to the profit, as basis for computation) Each partner shall receive 10% interest on average capital investments. Any remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: A ₱100,000 B 60,000 C 120,000 The partnership earns profit of ₱100,000. Requirement: Compute for the respective shares of the partners on the partnership profit.
Can you work this problem
Show your solution and answer.
After the tangible assets have been adjusted to current market prices, the capital accounts of Harper and Kahlil have balances of $60,000 and $90,000, respectively. Fay is to be admitted to the partnership, contributing $45,000 cash, for which she is to receive an ownership equity of $60,000. All partners share equally in income. a. Journalize the entry for the admission of Fay, who is to receive a bonus of $15,000. b. What are the capital balances of each partner after the admission of the new partner?