JPrepare adjusting entries to update the balances of some of the partnershipaccounts. Use "Capital Adjustments" account.If Merlita Pactanac will be admitted by purchasing 1/4 of the adjusted partnersinterest, how much is she going to pay and what is the journal entry to record heradmission if the purchase is at book value.Kareen Labor, Lalaine Dajao and Leah Magno were partners in a business engaged inprinting and publishing. The Statement of Financial Position reveals that their businessobligations to outside creditors.has noCashAccounts ReceivableInventoriesEquipmentTotalASSETS18-4P120,000150,000260,000300,000P830,000Instruction:PARTNERS' EQUITYLabor, Capital (30%)Dajao, Capital (20%)Magno, Capital (50%)TotalP400,000280,000150,000P830,000On January 1, 20A, the partners agree to admit Jimwell Acenas as a new partner afterconsidering the following revaluation and adjustments:1. Allowance for doubtful accounts of P20,000 is to be established for possibleuncollectible account.2. Inventories should be recorded at their net realizable value of P240,000. 20,0003. The net book value of the equipment should be adjusted at P250,000. 16,0004. Accrued expenses should be recognized, P10,000.-Prepare necessary adjusting journal entries. Use capital adjustments account.Record the admission of Acenas assuming:a) he purchases 1/3 of partnership's interest.b) he invests P200,000 for a 1/4 interest on agreed capitalization of P930,000.c) he invests P200,000 for a 1/5 interest in the new firm's capital of P930,000.

Partnership refers to the form of business organization in which two or more partners are ready to…

Kareen Labor, Lalaine Dajao and Leah Magno were partners in a business engaged in printing and publishing. The Statement of Financial Position reveals that their business has no obligations to outside creditors. ASSETS Cash Accounts Receivable Inventories Equipment Total 18-4 P120,000 150,000 260,000 300,000 P830,000 PARTNERS' EQUITY Labor, Capital (30%) Dajao, Capital (20%) Magno, Capital (50%) Total P400,000 280,000 150,000 P830,000

Kareen Labor, Lalaine Dajao and Leah Magno were partners in a business engaged in printing and publishing. The Statement of Financial Position reveals that their business has no obligations to outside creditors. ASSETS Cash Accounts Receivable Inventories Equipment Total 18-4 P120,000 150,000 260,000 300,000 P830,000 PARTNERS' EQUITY Labor, Capital (30%) Dajao, Capital (20%) Magno, Capital (50%) Total P400,000 280,000 150,000 P830,000

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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Prior to the distribution of cash to the partners, the accounts in the Oriole Company are Cash $ 34,000; Vogel, Capital (Cr.) $ 22,0003; Utech, Capital (Cr.) $ 20,000; and Pena, Capital (Dr.) $ 8,000. The income ratios are 5:3:2, respectively. Oriole Company decides to liquidate the company. (a) Prepare the entry to record (1) Pena's payment of $ 8,000 in cash to the partnership and (2) the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (2)
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A business owned by A1 was short of cash and she decided to form a partnership with A2, who was able to contribute cash 1.5 times the interest of A1 in the new partnership. The assets contributed by A1 appeared as follows in the statement of the financial position of her business: cash, P8,000; accounts receivable, P188,000, with allowance for uncollectible accounts of P5,000; merchandise inventory, P419,000 and store equipment, P149,000 with accumulated depreciation of P14,000. freshman freshma A1 and A2 agreed that the allowance for uncollectible accounts was inadequate and should be P10,000. They also agreed that the fair value for the inventory is P455.000 and the store equipment is P120.000. The cash contributed by A2 into the partnership is ______
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2. Grouse, Flicker, and Partridge are partners sharing profits and losses 20/40/40 respectively. Their balance sheet is below. Cash $200,000 Payables to Creditors $300,000 Receivable from Grouse 50,000 Loan to Partridge, 10,000 Receivable from Flicker 20,000 Grouse, Capital 240,000 Property & Equipment 480,000 Flicker, Capital 250,000 Goodwill 100,000 Partridge, Capital 50,000 $850,000 $850,000 The business is doing poorly, and they decided to liquidate. As such, the goodwill is non-existent. The goodwill was recorded when Flicker entered the business and was put entirely into Flicker's capital. The non-cash assets were sold for $200,000, and there are $20,000 of liquidation expenses. All partners are personally insolvent. Prepare a liqudation schedule showing any cash available to the partners.
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Larry, Curly and Moe formed the HydroCarpets partnership on January 1 of the current year. The partners invested assets and liabilities into the partnership as follows: Larry: Cash $ 55,000 Accounts Receivable 20,000 Curly: Land 20,000 Building 180,000 Mortgage payable 95,000 Moe: Cash 35,000 Office equipment 25,000 During the first year of business the net income was $141,000. 1) Prepare the journal entries to record the partnership setup 2) Prepare net income allocation using following plans separately. (please note that you need to show me the calculation formula and steps) Plan1: on a 3:3:4 ratio of partnership agreement Plan2: on an original investment ratio respectively Plan3: Interest allowance of 10% on initial investments, salary allowance of $35,000 to Larry, $40,000 to Curly and $45,000 to Moe, with any remaining balance to be shared equally among the three partners 3) Each partner withdrew $30,000 cash from the partnership during the year. Please prepare a statement of…
Arshman, Aahil and Arad decided to form a partnership firm under the name of A Star Enterprises. The partners sharing profit or loss equally and equal contribution in capital: Mr. Babar Invest Cash Rs. 60,000/- Merchandise inventory Rs. 55,000/- Supplies Rs. 20,000/-Office BuildingRs. 250,000 and Machinery Rs.70,000/- Mr. Aahil Invest Merchandise inventory Rs.40,000/-Equipment’sRs. 230,000/- Furniture Rs. 10,000/- and invested sufficient Cash to reach his capital equal to Mr. Babar. Mr. Arad Invest Cash Rs. 20,000/- Furniture Rs. 90,000; Machinery Rs.50, 000/- Van Rs.100,000/- and invest Merchandise inventory to bring his capital equal to his other partners. Required: Give entries in general journal to record the investment of partners.
A summary balance sheet for the Lemon, Mango, and Nobb partnership appears below. Lemon, Mango, and Nobb share profits and losses in a ratio of 2:3:5, respectively. Assets Cash $ 100,000 Marketable securities 200,000 Inventory 125,000 Land 100,000 Building-net 500,000 Total assets $1,025,000 Equities Lemon, capital $ 425,000 Mango, capital 400,000 Nobb, capital 200,000 Total equities $1,025,000 The partners agree to admit Oran for a one-fifth interest. The fair market value of partnership land is appraised at…
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Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 210000 Cash 17500 Bills Payable 70000 Debtors 245000 General Reserve 140000 Stock 105000 0 Plant 280000 Buildings Capital: 87500 Ahmed 350000 Wahid 140000 Profit & Loss Ac 35000 Bank Overdraft 210000 Equipment 210000 Total 1050000 Total 1050000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 420000 b) Stock is revalued at 75250 c) Goodwill is raised at 140000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 175000 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.