nd losses in a fixed ratio of 40%: 40%: 20% respectively. On this day a new partner (Salem) joins the company by investing cash into it. forming a new partnership called RNOS Company. Salem's capital is credited for 30% of t
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- The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (50%) Phil (40%) Ernie (10%) Each of the following questions should be viewed independently. Required: a. If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio invests $50,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio invests $60,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used. $ 70,000 40,000 55,000 Complete this question by entering your answers in the tabs below. Required A Required B View transaction list If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry recorded? Assume tha method is used. the bonus Note: If…Herbert and Ireneo are partners sharing profits and losses in the ratio of 60% and 40%, respectively. The partnership balance sheet at August 30, 2016 follows: Cash $12,150 Other Assets 119,150 Accounts Payable 13,500 Herbert, capital 86,850 Ireneo, capital 31,500 At this date, Joshua was admitted as a partner for a consideration of $43,875 cash for a 40% interest in capital and in profits. Required: 1. Assume Joshua is admitted by investing the $43,875 to the partnership: Calculate the partners capital account of Herbert, Ireneo, and Joshua after the admission, and New Total Partners equity using: a. Bonus Method b. Revaluation MethodLucy and Fer are partners having capital balances of 32,000 and 48,000, respectively. They share profits and losses in the ratio of 2:6. Nando is admitted into the partnership upon investing cash of 15,000. His share in the profits is 25% and the balance will be divided by the old partners using their original profit sharing ratio. Required: a) Assume that Nando is allowed a 20% interest in the new firm. 1. What entry would be made in recording the admission of Nando if the goodwill method is used? 2. What entry would be made if the bonus method is used? b) Assume that Nando is allowed a 20% interest in the new firm. 1. What entry would be made if the goodwill method is used? 2. What entry would be made if the bonus method is used?
- Alford, Beeson, and Carlton have operated a coffee shop for a number of years as a partnership. At the beginning of 2024, capital balances were as follows: Alford Beeson Carlton Due to a cash shortage, Alford invests an additional $10,000 in the business on April 1, 2024. Each partner is allowed to withdraw $600 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: • Each partner is given the following compensation allowance for work done in the business: Alford, $14,000; Beeson, $30,000; and Carlton, $4,000. $ 94,000 74,000 20,000 • Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. • Any remaining profit or loss is allocated 5.3.2 to Alford, Beeson, and Carlton, respectively. The net income for 2024 is $27,000. Each partner withdraws the allotted amount each month. Required: Prepare a schedule showing calculations for the…On January 1, 2022, Bon Hok, Dyon Ok and Meow Meng agreed to form a partnership with the following contribution: Bon Hok, a general partner, contributed cash P 150,000 and shares 45% for profits and losses. Dyon OK is a limited partner, contributed his Brand New Motorcycle costing P 150,000 and shares 40% for profits and losses Meow Meng is an industrial partner contributing his personal services and shares 15% in the partnership profits. Prepare the journal entry and post it to the appropriate partner's account. Let's try these: Prepare the journal entries for the following transactions: July 1- Mr. Bon Hok withdraw P20,000 cash charge to share in profits. 2 - Mr. Ok made an additional contribution of P30,000 cash. 3 Mr. Meng bought goods on account from the partnership, P 10,000 4 The partnership borrowed P50,000 from Mr. Hok. 5 Mr. Meng fully paid its account to the partnership. 6. The partnership pays 50% of its borrowings to Mr. Hok. 7 Mr. Ok permanently withdraw P 20,000 cash…Capital balances of Chris, Oscar and Tim in the COT partnership are $120,000, $100,000 and $80,000 respectively. The profit and loss ratio is 5:3:2. The SCOT partnership is formed by admitting Susan to the firm with a cash investment of $120,000 for a 25% interest. After the admission of Susan as the partner, SCOT partnership reports: Tim, capital: Choose. Net assets: Choose. $105,000 Susan, capital: $80,000 Chris, capital: $405,000 $100,000 $120,000 Oscar, capital: $83,000 $127,500 $420,000 $104,500
- 3. Raja and Sam were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were RO. 80,000 and RO. 60,000 respectively. The firm stared business on April 1, 2001. According to the partnership agreement interest on capital and drawings are 12% and 10% p.a. respectively. Raja and Sam are to get a monthly salary of RO. 2,000 and RO. 3,000 respectively. The profits for year ended March 31, 2002 before making above appropriation was RO. 100,300. The drawings of Raja and Sam were RO. 40,000 and RO. 50,000, respectively. Interest on drawings amounted to RO. 2,000 for Raja and RO 2,500 for Sam. Prepare Profit and Loss Appropriation Account and partners' capital accounts assuming that their capitals are fluctuating.The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (50%) $ 165,000 Phil (20%) 135,000 Ernie (30%) 150,000 Each of the following questions should be viewed independently. Required: If Sergio invests $190,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $100,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $120,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C If Sergio invests $190,000 in cash in the business for a 20 percent interest, what journal entry is…One, Two and Three are partners sharing profits and losses in the ratio of 2:3:5 respectively. The partnership is balance sheet at August 30, 2016 follows:One 40,000 Two 60,000 Three 100,000 A.Assuming that Ako is admitted to purchase interest and paid 40,000 for a 40% interest. 1.How much is the total capital after Ako's Admission? 2.What will be the new share of Three after Ako's Admission? 3.What us the Adjusted capital of Two after Ako's admission? B. Assuming that Ako is admitted by purchase of interest from Three and paid 60,000 for a 30% interest. 1. What will be the new share of Three after Ako's Admission? 2. What amount will be credited to Ako upon his admission? 3. What is the adjusted capital of Thee after Ako's admission C. Assuming that Ako is admitted by investing 40,000 for a 40% interest. No revaluation of assets is to be recognized. 1. How much is the total capital after Ako's Admission? 2. What is the adjusted capital of Three after Ako's admission? 3. What…
- Rosfe Badoy formed a partnership with Enrico Yee on a business dealing with motorcycle parts in Davao City. Their capital balances as of this date, follows: R. Badoy 100,000.00 E. Yee 200,000.00 Total 300,000.00 Romanor Gatmaitan, a prospective business associate offers to buy 1/4 of the partnership interest for P85,000. The old profit and loss ratio of the partners is 45% - 55% after which, they will again have to provide a new basis for profit distribution. Answer the following questions; 1. How much is the book value of partnership interest acquired by Gatmaitan? Answer: 2. How much is the gain or loss on the sale transactions? Answer: 3. What is the journal entry to record the admission of Gatmaitan? Answer:You were given the following capital balances of the partners of Pinnacle Trading: Stephanie Php 10,000 Angel Php 20,000 Nichole Php 30,000 The partners agreed to divide profit or loss in the ratio of their capital balances. If the partnership earned a profit of Php 30,000 for the year, compute the share of Stephanie, Angel, and Nichole to the profit of the business.Allan and Bobby formed a partnership called the AB Partnership by investing cash of P300,000 and P400,000 respectively. They share profit and loss ratio 2:3. Carlo of Singapore was admitted to the firm with an investment of P500,000 representing a 30% interest. Allan decided to withdraw on June 3, 2022 for a cash settlement of P650,000. The partners decided that assets need not be revalued. How much was total partners' equity after the retirement of Allan?
