Keith and Jim are partners. Keith has a capital balance of $49,000 and Jim has a capital balance of $38,000. Bill invested $33,000 to acquire anownership interest of 30%. Wwhich of the following statements is TRUE of this transaction? (Round the final answer to the nearest dollar.)A) Keith and Jim recelved a bonus of $1500 each.B) Bill received a bonus of $4900.C) Keith and Jim recelved a bonus of $2450 each.D) Bill received a bonus of $3000

Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Answered: Keith and Jim are partners. Keith has a…

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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Abner and Bimbo have just formed a partnership, Abner contributed cash of P2,346,000 and office equipment that cost P1,170,000. The equipment had been used in the sole proprietorship and had been 80% depreciated. The current fair value of the equipment is P756,000. An unpaid mortgage loan on the equipment of P252,000 will be assumed by the partnership. Abner is to have a 40% interest in the partnership net assets. Bimbo is to contribute only merchandise with a fair value of P1,890,000. Required: Use Bonus and Goodwill Method in computing the capital balances of Abner and Bimbo.
Jensen and Stafford began a partnership to start a hardwood flooring installation business, by investing $178,000 and $218,000, respectively. They agreed to share profits/(losses) by providing yearly salary allowances of $168,000 to Jensen and $93,000 to Stafford, 25% interest allowances on their investments, and sharing the balance 3:2. Required: 1. Determine each partner’s share if the first-year profit was $438,000. 2. Independent of (1), determine each partner’s share if the first-year loss was $113,000. (Negative answers should be indicated by a minus sign.)
Delia and Danny are partners with capital balances of P3,000,000 and P2,000,000, respectively. They share profits and losses in the ratio of 3:2, respectively. If Dada purchased 1/4 of the equity of Danny for P900,000. How much is Danny's capital balance after Dada's admission?P1,500,000n
1.Tom, Greg, and Tim are partners who share profits 50%, 25%, and 25%. Their capital balances were $117,000, $78,000, and $45,000, respectively, before Tim's retirement. Tom and Greg each paid Tim $30,000 from their personal assets to buy half his interest. After Tim has withdrawn, Tom will have a capital balance of $____________. 2.Sarah, Lila, and June are partners who share profits 40%, 20%, and 40%. Their capital balances were $280,000, $120,000, and $80,000, respectively, before June’s retirement. June was paid $56,000 from partnership assets to buy her interest. After June has withdrawn, Sarah will have a capital balance of $____________. 3.Rob and Chrissie are partners who share profits 60% and 40%. Their capital balances were both $60,000 before Dora was admitted to the partnership. Dora contributed $100,000 in cash to the partnership for a 30% interest. After Dora is admitted to the partnership, Rob will have a capital balance of $____________. 4.Lacy and Jenny are…
Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $140,000, $80,000, and $55,000, respectively. (a) Your answer is correct. Assume Sanford joins the partnership by investing $135,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment. (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 Cash Sanford, Capital Daggett, Capital Lamppin, Capital Pendergast, Capital + + + Debit 135000 Credit 102500 16250 9750 6500
Singer and McMann are partners in a business. Singer's original capital was $43,200 and McMann's was $52,800. They agree to salaries of S10,500 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses in a 3:2 ratio, what will Singer's share of the income be if the income for the year is $66,600? Oa. S10,500 Ob. $14,820 Oc. $31,920 Od. S39,960
Jeremy and Eli are partners who share profits and losses equally. The capital accounts of the partners have the following balances: Jeremy 180,000 Eli 70,000 Thadez desires to join the firm and offered to invest 96,000 for a 1/3 interest. Jeremy and Eli declined his offer, but they extended a counter-offer to Thadez of 88,000 for a 25% interest in the capital and profits and losses of the firm. If Thadez accepted the offer, what would be the balance of Jeremy’s capital account after Thadez’s admission? Group of answer choices 178,250 187,000 199,000 181,750
Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses in a 3:2 ratio (3/5 to Singer and 2/5 to McMann), what will Singer's share of the income (loss) be if the net loss for the year is $(10,000)?
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Peter, James, and John are partners with capital investments of P450,000, P350,000 and P500,000 respectively. Upon the formation of the business, the three agreed to share profits and losses in the ratio of 4:3:3. Andrew was admitted into the partnership by investing cash of P488,000 for a 30% interest in the partnership. How much is the bonus given by James to Andrew? Note: Round of answer to the nearest peso.
Ahmed and Salim form a partnership on June 1. Ahmed contributes OMR 15,000 cash, inventory with a market value of OMR 40,000 , and Accounts Payable of OMR 80,000. Ahmed also contributed computer equipment with a cost of OMR 80,000 and accumulated depreciation of OMR 20,000 . Current market value is OMR 85,000 Ahmed's Capital will be Select one: O a. Credit, 30,000 O b. Credit, 60,000 O c. Debit, 30,000 O d. Debit, 60,000

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