Mace and Bowen are partners and share equally in income or loss. Mace's current capital balance is $ 174,000 and Bowen's is $152, 500. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $154,000 in the partnership. The balances in Mace's and Bowen's capital accounts after admission of the new partner equal: aMace $ 174,000; Bowen $152,500. bMace $178, 925; Bowen $ 157,425. cMace $169,075; Bowen $147,575. dMace $183,850; Bowen $152,500. eMace $174,000; Bowen $162,350.

Mace and Bowen are partners and share equally in income or loss. Mace's current capital balance is $ 174,000 and Bowen's is $152, 500. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $154,000 in the partnership. The balances in Mace's and Bowen's capital accounts after admission of the new partner equal: aMace $ 174,000; Bowen $152,500. bMace $178, 925; Bowen $ 157,425. cMace $169,075; Bowen $147,575. dMace $183,850; Bowen $152,500. eMace $174,000; Bowen $162,350.

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

Lima and Mitra are partners with a profit and loss ratio of 75:25 and capital balances of P100,000 and P50,000 respectively. Nova is to be admitted into the partnership by purchasing a 20% interest in the capital, profits and losses for P60,000.Assuming that no asset revaluation is to be made, the capital balances of Lima, and Mitra after the admission of Nova are Lima, P112,000 and Mitra, P38,000 Lima, P100,000 and Mitra, P50,000 Lima, P120,000 and Mitra, P60,000 Lima, P80,000 and Mitra, P40,000. Assuming that asset revaluation is to be made, the capital balances of Lima, Mitra and Nova are P170,000; P70,000; P60,000 P192,500; P77,500; P30,000 P100,000; P50,000; P60,000 P800,000; P40,000; P30,000
Siham and Dalia are partners with capital balances of $60,000 and $40,000, respectively. Profits and losses are divided in the ratio of 60:40. Siham and Dalia decided to form a new partnership with Jamileh, who invested land valued at $40,000 for a 20 percent capital interest in the new partnership. Jamileh's cost of the land was $35,000. The partnership elected to use the bonus method to record Jamileh's admission into the partnership. Jamileh's capital account should be credited for a. $40,000. b. $28,000. c. $35,000. d. $27,000.
Nelson Ellis and Hank Tollis are partners who share profits and losses in the ratio of 40 to 60 percent, respectively. The balances of their capital accounts on December 31, 20X0, are Ellis, $210,000, and Tollis, $230,000. With Tollis's agreement, Ellis sells one-half of his interest in the partnership to Kate Cantu for $160,000 on January 1, 20X1. Required: What will the capital account balances for each of the three partners be after this sale? New Capital Account Balances Beginning balance Transfer of capital New balances Ellis Tollis Cantu
Shirley contributes property to a new partnership with a value of $1,000,000 and a basis of $400,000 that is secured by a $500,000 nonrecourse note. Under the terms of the partnership agreement, Shirley will be allocated 25% of all profits. The partnership agreement also states that "excess nonrecourse liabilities" will be allocated to partners according to profit ratios. How much of the nonrecourse liability will be allocated to Shirley? please dont provide answer in images thank you
Dexter, Edwards, and French are partners with the following capital balance and profit and loss sharing percentages: Dexter $200,000 (70%) Edwards 120,000 (20%) French 60,000 (10%) It is agreed that Edwards will withdraw from the partnership and receive his capital balance plus his share of any increase in the fair value over book value of the underlying assets of the partnership. Assume the total increase in fair value is $100,000. a. if the bonus method is used what is the balance in Dexter’s capital account after the withdrawal of Edwards? b. if the goodwill method is used, what is the balance of the French’s capital account after the withdrawal of Edwards? Answer a and b both
Peters and Chong are partners and share equally in income or loss. Peters' current capital balance is $150,000 and Chong's is $140,000. Peters and Chong agree to accept Aaron with a 30% interest in the partnership. Aaron invests $118,000 in the partnership. The amount credited to Aaron's capital account is: Multiple Choice $122,400. $118,000. $268,000. $80,400. $128,000.
Kern and Pate are partners with capital balances of $60,000 and $20,000, respectively. Profits and losses are divided in the ratio of 60:40. Kern and Pate decided to form a new partnership with Grant, who invested land valued at $15,000 for a 20% capital interest in the new partnership. Grant's cost of the land was $12,000. The partnership elected to use the bonus method to record the admission of Grant into the partnership. Grant's capital account should be credited for: A. $12,000 B. $15,000 C. $16,000 OD. $19,000
Baker, Gregg, and Stine share income and losses in a ratio of 4:1:5, respectively. The capital account balances of the partners are as follows: Baker, Capital $150,000 Gregg, Capital 90,000 Stine, Capital 60,000 Prepare the journal entry on the books of the partnership to record the withdrawal of Stine under the following independent circumstances: (a) The partners agree that Stine should be paid $70,000 by the partnership for his interest. (b) The partners agree that Stine should be paid $45,000 by the partnership for his interest. (c) Baker agrees to pay Stine $40,000 for one-half of his capital interest and Gregg agrees to pay Stine $40,000 for one-half of his capital interest in a personal transaction among the partner
Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $199,800 and $62,680, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. Assume the sale occurs on December 31. What entry is required by the partnership if the sales price is (a) $66,600? (b) $87,700?
ces Gorman and Morton form a partnership on May 1, 2022. Gorman contributes cash of $73,000; Morton conveys title to the following properties to the partnership: Equipment Licensing agreements Book Value $ 26,500 46,500 Fair Value $51,000 59,000 The partners agree to start their partnership with equal capital balances. No goodwill is to be recognized. According to the articles of partnership written by the partners, profits and losses are allocated based on the following formula: Gorman receives a compensation allowance of $1,300 per month. All remaining profits and losses are split 40.60 between Gorman and Morton, respectively. Each partner can make annual cash drawings of $5,000 beginning in 2023. Net income of $22,500 is earned by the business during 2022. Steele is invited to join the partnership on January 1, 2023. Because of her business reputation and financial expertise, she is given a 40 percent interest for $77,000 cash. The bonus approach is used to record this investment,…