How much is the total assets of the partnership after the formation?
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KATY, a sole proprietor wanted to expand her profitable business but she does not have enough resources. So, she thought of inviting PERRY to join her and formed a partnership on April 1, 2020. Just before admission, KATY had the following assets and liability accounts: Cash - ₱420,000;
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- On January 2, 2021, Abel, Cain and Josuah formed a partnership. Abel contributed cash of P 100,000 and a delivery equipment that originally costs him P 120,000, but with a secondhand value of P500,000. Cain contributed P 160,000 in cash. Josuah, whose family sells office equipment, contributed P 50,000 in cash and office equipment that cost his family's dealership P 100,000 but with a regular selling price of P 120,000,the partnership reported net income of P 120,000. On December 31, 2021, what would be the capital balance of the partners? Abel Php257,000 Cain Php200,000 A Josuah Php192,500 Abel Php187,500 Cain Php200,000 Josuah Php212,500 Abel Php190,000 (c) cain Php200,000 Josuah Php210,000 Abel Php260,000 D Cain Php200,000 Josuah Php190,000Jean, Conny, and Sasha decided to put up a meat and potato business so they formed a partnership on January 1, 2021, each partner investing P250,000 and agree to distribute profits equally. On February 10, 2021, Jeanwanted to give Mikasa a present, thus, he was advanced P100,000 by the firm. On September 1, 2021, Conny made a loan to the firm of P200,000. Interest is to be charged on advances to partners and credited on loansby partners at the rate of 12%. Business became unsatisfactory because Sasha kept on eating all the meat and potatoes that the partnership offers, thus, the partners decided to dissolve the business. Sasha is allowed special compensation of P25,000 for managing the sale of assets and settlement with creditors. On December 31, all assets have been sold, outside creditors have been paid, and cash of P350,000 is distributed topartners. All partners are personally solvent and final settlement is made among partners on February 10, 2022. How much Conny would receive…Cathy, Tim and Lucas started a partnership online retailing business as from 1 January 2022. The agreement set out the following basic arrangements: Cathy to contribute $12 000 in account receivables and inventory valued at $8 000. She also contributed computers valued at $10 000 on her record. The fair value of these computers was $2 000 lower than Cathy's booking record on 1 January 2022. Tim to contribute $26 000 in cash and office furniture, which originally cost $35 500. Based on Tim's accounting record, the accumulated depreciation of office furniture showed $15 000. The bank loan associated with office furniture is $10 000. Lucas to contribute inventory valued at $24 750 and to act as managing partner at a salary of $20 000 per year. Interest to be allowed at 5% p. a. on the capital contribution by the partners. Residual profits or losses to be shared equally among three partners. Ignore GST Required 1) Prepare the journal entries necessary to open the records of the…
- What is the correct answer?On February 1, 2020, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $89,000 cash and Xie contributed land valued at $129,000 and a small building valued at $189,000. Also, the partnership assumed responsibility for Xie’s $139,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $99,000, both are to receive an annual interest allowance of 12% of their original capital investments, and any remaining profit or loss is to be shared equally. On November 20, 2020, Williams withdrew cash of $69,000 and Xie withdrew $54,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $169,000.Required:1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the Income…Ana, Bea and Carol decided to form a partnership contributing the following items. Ana is to invest her existing business in the partnership consisting of the following accounts; cash of P20,000; accounts receivable of P50,000; inventory P30,000; fixtures of P40,000; payables of P12,000. Bea on the other hand is to invest cash of P15,000 and a delivery truck costing P30,000 but is mortgaged with the bank for P20,000. The partners agree that the receivables will re have a 90% realizable value. The inventory would be valued at P20,000. P5,000 of the payables would be paid prior to the formation of the partnership. The delivery truck would have a 20% increase in its market value. The partnership will shoulder only 80% of the mortgage and Carol is to invest cash to be able to have a 40% interest in the partnership.How much cash should Carol invest in the newly formed partnership?A. 61,200 B. 138,000 C. 60,800 D. 102,000
- As of June 30, 2020, Kagura and Hayabusa decided to form a Partnership. Their balance sheet on this date is as follows: Account Kagura Hayabusa Cash 70,000 40,000 Accounts Receivable 20,000 30,000 Allowance for doubtful accounts - 2,000 Notes receivable 10,000 20,000 Merchandise Inventory 80,000 100,000 Machinery and equipment 120,000 - Furnitures and Fixtures - 110,000 Accumulated Depreciation 10,000 20,000 Accounts payable 30,000 20,000 Notes payable 20,000 5,000 The partners agreed to the following adjustments: Uncollectible accounts of P3,000 for Kagura is to be provided; and 10% of the account receivable for Hayabusa is uncollectible. Kagura’s inventory amounting to P5,000 is worthless, while Hayabusa’s inventory has a fair value of P140,000 and costs to sell of P10,000. An interest of 10% on notes receivable dated March 31, 2020 is to be accrued for both books. Accrued rent income of…As of June 30, 2020, Kagura and Hayabusa decided to form a Partnership. Their balance sheet on this date is as follows: Account Kagura Hayabusa Cash 70,000 40,000 Accounts Receivable 20,000 30,000 Allowance for doubtful accounts - 2,000 Notes receivable 10,000 20,000 Merchandise Inventory 80,000 100,000 Machinery and equipment 120,000 - Furnitures and Fixtures - 110,000 Accumulated Depreciation 10,000 20,000 Accounts payable 30,000 20,000 Notes payable 20,000 5,000 The partners agreed to the following adjustments: Uncollectible accounts of P3,000 for Kagura is to be provided; and 10% of the account receivable for Hayabusa is uncollectible. Kagura’s inventory amounting to P5,000 is worthless, while Hayabusa’s inventory has a fair value of P140,000 and costs to sell of P10,000. An interest of 10% on notes receivable dated March 31, 2020 is to be accrued for both books. Accrued rent income of…PP, RR and SS are new CPA’s and are to form a partnership. PP is to contribute cash of P50,000 and his computer originally costing P60,000 but has a second-hand value of P25,000. RR is to contribute cash of P80,000. SS, whose family is selling computers, is to contribute cash of P25,000 and a brand-new computer with a regular selling price of P60,000 but which cost is P50,000. Partners agree to share profits equally. The capital balances upon formation are: PP RR SSa. P 75,000 P80,000 P85,000b. P110,000 P80,000 P75,000c. P 80,000 P80,000 P80,000d. P 83,333 P83,333 P83,334
- Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2022, O'Donnell invests a building worth $130,000 and equipment valued at $140,000 as well as $60,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O'Donnell to join this partnership, Reese draws up the following profit and loss agreement: ⚫ O'Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year. • O'Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $4,000, whichever is larger. All remaining income is credited to Reese. ⚫ Neither partner is allowed to withdraw funds from the partnership during…Nina and Bona made initial investments of P500,000 and P300,000,respectively.Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2022, O’Donnell invests a building worth $54,000 and equipment valued at $20,000 as well as $16,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year. O’Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $5,000, whichever is larger. All remaining income is credited to Reese. Neither partner is allowed to withdraw funds from the partnership during 2022.…