Knowledge Check 01 Eric Christie and Johnnie Pitt organize a partnership. Their partnership agreement states that Christie will receive two-thirds of the partnership income or loss and Pitt will receive the remain one-third. On January 2, the two partners agree to accept Peter Morgan as a partner with a 10% interest if Morgan invests $50,000 At the time of Morgan's admission, the partnership's accounting records show that Christie has recorded equity of $210,0CC and Pict has recorded equity of $60,000. The bonus that will be allocated to Christie as a result of this transaction (rounded to the ne. est dollar) is: $6,000. $16.667. $18,000. $50,000. $12,000.

Knowledge Check 01 Eric Christie and Johnnie Pitt organize a partnership. Their partnership agreement states that Christie will receive two-thirds of the partnership income or loss and Pitt will receive the remain one-third. On January 2, the two partners agree to accept Peter Morgan as a partner with a 10% interest if Morgan invests $50,000 At the time of Morgan's admission, the partnership's accounting records show that Christie has recorded equity of $210,0CC and Pict has recorded equity of $60,000. The bonus that will be allocated to Christie as a result of this transaction (rounded to the ne. est dollar) is: $6,000. $16.667. $18,000. $50,000. $12,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Do not give answer in image
Case 1 Mazin, Mansoor and Malik started a partnership firm on January 1, 2019. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Mazin is to be paid salary of RO. 12000 p.a. and Mansoor commission of RO. 2,500 every 6 months. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4,000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO.180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on the above information answer the following ‘3’ questions. (Do not upload any documents in the moodle) 30. The balance of capital for partner Mansoor at the end of the year…
Book A partnership has total equity of $464,000. Partnership equity consists of Green, Capital, $324,000, and Tan, Capital, $140,000. Net income and loss is shared in a ratio of 85% to Green and 15% to Tan. On December 1, the partnership accepts Brown as a new partner. Record the entry for Brown's admission under each separate situation. 1. Record the admission assuming Brown makes an investment of $118,000 cash for a 20% interest in equity and a 20% share of any income or loss. 2. Record the admission assuming Brown makes an investment of $161,000 cash for a 20% interest in equity and a 20% share of any income or loss. 3. Record the admission assuming Brown makes an investment of $84,000 cash for a 20% interest in equity and a 20% share in any income or loss.
Helping tags: Accounting...WILL UPVOTE, just please help me answer the questions. Thank you!
plz solve??
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: $73,440 101,520 Ben Testerman The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $41,040 cash for a 19% interest. Dennis Overton 2. Net income of $280,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $60,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell. 3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income. Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank. Angel Investor Associates Statement of Partnership Equity For the Year Ended December 31, 20Y5 Ben Testerman, Capital Balances,…
Case 1 Mazin, Mansoor and Malik started a partnership firm on January 1, 2019. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Mazin is to be paid salary of RO. 12000 p.a. and Mansoor commission of RO. 2,500 every 6 months. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4,000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO.180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on the above information answer the following ‘3’ questions. (Do not upload any documents in the moodle) 31. Identify which one of the following accounting entry for payment…
2
Current Attempt in Progress Jaime Keller has a $37,720 capital balance in a partnership. She sells her interest to Sam Parmenter for $41,400 cash. What entry is made by the partnership for this transaction? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Mee Su is a partner in Hartford Partners, LLC. Her partnership capital balance at the beginning of the current year was $110,000, and her ending balance was $124,000. Her share of the partnership income is $10,500. What is her partner return on equity?
TRUE OR FALSE
Please help me