L.C! tSes 1ע 12-1 p.589 PE 12-1A Journalizing partner's original investment Holly Renfro contributed a patent, accounts receivable, and $20,000 cash to a partnership. The patent had a book value of $8,000. However, the technology covered by the patent ap- peared to have significant market potential. Thus, the patent was appraised at $92,000. The accounts receivable control account was $45,000, with an allowance for doubtful accounts of $3,000. The partnership also assumed a $14,000 account payable owed to a Renfro supplier. Provide the journal entry for Renfro's contribution to the partnership. OBJ. 2 -1 p. 589 PE 12-1B Journalizing partner's original investment Austin Fisher contributed land, inventory, and $36,000 cash to a partnership. The land had a book value of $120,000 and a market value of $175,000. The inventory had a book value of $50,000 and a market value of $42,000. The partnership also assumed a $35,000 note payable owed by Fisher that was used originally to purchase the land. Provide the journal entry for Fisher's contribution to the partnership. OBJ. 2 OBJ. 2 p. 593 PE 12-2A Dividing partnership net income Lia Chen and Martin Monroe formed a partnership, dividing income as follows: 1. Annual salary allowance to Chen of $35,000. 2. Interest of 4% on each partner's capital balance on January 1. 3. Any remaining net income divided to Chen and Monroe, 2:1.
L.C! tSes 1ע 12-1 p.589 PE 12-1A Journalizing partner's original investment Holly Renfro contributed a patent, accounts receivable, and $20,000 cash to a partnership. The patent had a book value of $8,000. However, the technology covered by the patent ap- peared to have significant market potential. Thus, the patent was appraised at $92,000. The accounts receivable control account was $45,000, with an allowance for doubtful accounts of $3,000. The partnership also assumed a $14,000 account payable owed to a Renfro supplier. Provide the journal entry for Renfro's contribution to the partnership. OBJ. 2 -1 p. 589 PE 12-1B Journalizing partner's original investment Austin Fisher contributed land, inventory, and $36,000 cash to a partnership. The land had a book value of $120,000 and a market value of $175,000. The inventory had a book value of $50,000 and a market value of $42,000. The partnership also assumed a $35,000 note payable owed by Fisher that was used originally to purchase the land. Provide the journal entry for Fisher's contribution to the partnership. OBJ. 2 OBJ. 2 p. 593 PE 12-2A Dividing partnership net income Lia Chen and Martin Monroe formed a partnership, dividing income as follows: 1. Annual salary allowance to Chen of $35,000. 2. Interest of 4% on each partner's capital balance on January 1. 3. Any remaining net income divided to Chen and Monroe, 2:1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Journalizing Partner's original investment.
A
Transcribed Image Text:L.C! tSes 1ע
12-1 p.589
PE 12-1A Journalizing partner's original investment
Holly Renfro contributed a patent, accounts receivable, and $20,000 cash to a partnership.
The patent had a book value of $8,000. However, the technology covered by the patent ap-
peared to have significant market potential. Thus, the patent was appraised at $92,000. The
accounts receivable control account was $45,000, with an allowance for doubtful accounts of
$3,000. The partnership also assumed a $14,000 account payable owed to a Renfro supplier.
Provide the journal entry for Renfro's contribution to the partnership.
OBJ. 2
-1 p. 589
PE 12-1B Journalizing partner's original investment
Austin Fisher contributed land, inventory, and $36,000 cash to a partnership. The land
had a book value of $120,000 and a market value of $175,000. The inventory had a book
value of $50,000 and a market value of $42,000. The partnership also assumed a $35,000
note payable owed by Fisher that was used originally to purchase the land.
Provide the journal entry for Fisher's contribution to the partnership.
OBJ. 2
OBJ. 2
p. 593 PE 12-2A Dividing partnership net income
Lia Chen and Martin Monroe formed a partnership, dividing income as follows:
1. Annual salary allowance to Chen of $35,000.
2. Interest of 4% on each partner's capital balance on January 1.
3. Any remaining net income divided to Chen and Monroe, 2:1.
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