Jimmy, Johnny, and Joey are partners in the 3J Company sharing profits and losses equally. Joey has decided to leave the partnership. After all accounts have been updated, thecapital balances of the partners are currently $90,000, $120,000, and $70,000, respectively.Refer to Table 12-8. Assume Joey takes $50,000 in cash and a promissory note for $20,000. The entry to record his with drawal includes aO A.O B.credit to Joey, Capital for $50,000debit to Joey, Capital for $70,000C. debit to Joey, Capital for $50,000O D. credit to Joey, Capital for $70,000

Partnership Firm: A partnership is a formal agreement between two or more partners who agree to…

Answered: Jimmy, Johnny, and Joey are partners in…

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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Vishnu
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $28,000 and $18,000, respectively. After all noncash assets are sold and all Iliabilities are paid, there is a cash balance of $35,000.
Item Nos. 26 to 28 are based on the following information: Kia, Lia, and Mia are partners sharing profits and losses equally. The partnership is liquidated. After all assets are converted into cash and all liabilities are paid, P 520,000 cash remains available for distribution to the partners. Kia and Lia have capital balances of P 400,000 and P 300,000, respectively. Mia has a debit balance of P 180,000 in her capital account. 26. If Mia is personally solvent, how much cash will be distributed to Kia? P 340,000. a. P 260,000. C. b. P 310,000. d. P 400,000. 27. If Mia is personally insolvent, how much cash will be distributed to Kia? a. P 260,000. c. P 340,000. b. P 310,000. d. P 400,000. 28. If the capital of Kia prior to realization is P425,000, what is the loss on realization? a. P 25,000. Pplw-C. c. P 75,000. d. P 100,000. b. P 50,000. Item Nos. 29 and 30 are based on the following information: Noly, Ollie, and Poly are partners with capital balances of P 350,000, P 250,000, and P…
Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $143,000, $89,000, and $58,000, respectively. Assume instead that Daggett leaves the partnership. Daggett is paid $177,000 with a bonus to the retiring partner.Prepare the journal entry to record Daggett’s withdrawal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit select an account title enter a debit amount enter a credit amount select an account title enter a debit amount enter a credit amount select an account title enter a debit amount enter a credit amount…
Regina Harrison is a partner in Pressed for Time. An analysis of Regina Harrison's capital account indicates that during the most recent year, she withdrew $20,000 from the partnership. Her share of the partnership's net loss was $16,000 and she made an additional equity contribution of $10,000. Her capital account ended the year at $150,000. What was her capital balance at the beginning of the year? a. $124,000 O b. $176,000 ○ c. $192,000 Od. $144,000
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. Cash Grayson Jackson, Capital Harry Barge, Capital Lewan Gorman, Capital b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ Harry Barge $ Lewan Gorman $
T. Thomas withdraws from his partnership with five other partners and takes cash equal to his capital balance, in the amount of $25,000. The journal entry to reflect this transaction would include which of the following? (Check all that apply.) Multiple select question. Credit to Cash Debit to T. Thomas, Capital Credit to T. Thomas, Capital Debit to Cash
5. Help me selecting the right answer. Thank you

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