allowance of $6,000 per month to partner C.The articles of partnership provide for a salaryIf C withdrew only $4,000 per month, woulda partner's cash withdrawal in lieu ofedited tointerest from another Dartner and (b) by contribu-tion of assets to the partnership.accoiwhat9. Why is it important to state all partnership assets interms of current prices at the time of the admissionof a new partner?10. Why might a partnership pay a bonus to a newlyadmitted partner?pactice ExercisesPE 12-1A Journalizing partner's original investmentCatrina Santana contributed a patent, accounts receivable, and $23,000 cash to a parthersinpaThe patent had a book value of $8,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $85,000. Theaccounts receivable control account was $38.000, with an allowance for doubtful accounts of$2,000. The partnership also assumed a $10,000 account payable owed to a Santana suplier.Provide the journal entry for Santana's contribution to the partnership.EE 12-1 p. 55sOBJ. 2HOWPE 12-1B Journalizing partner's original investmentAustin Fisher contributed land, inventory, and $36,000 cash to a partnership. The landhad a book value of $120,000 and a market value of $175,000. The inventory had a bookvalue of $50,000 and a market value of $42,000. The partnership also assumed a $35,000note payable owed by Fisher that was used originally to purchase the land.Provide the journal entry for Fisher's contribution to the partnership.EE 12-1 p 555OBJ. 2PE 12-2A Dividing partnership net incomesbiupHan Lee and Monica Andrews formed a partnership, dividing income as follows:1. Annual salary allowance to Lee of $32,000.EE 12-2 p. 558OBJ. 21,000,021 bas2. Interest of 4% on each partner's capital balance on January 1.S000WOH2WOH M3. Any remaining net income divided to Lee and Andrews, 2:1.Lee and Andrews had $80,000 and $150,000, respectively, in their January 1 capital bal-ances. Net income for the year was $64,000.How much net income should be distributed to Lee and Andrews?pnlisblupiignitsbiupil oTOPE 12-2B Dividing partnership net incomeJohn Prado and Ayana Nicks formed a partnership, dividing income as follows:EE 12-2 p. 558OBJ. 21. Annual salary allowance to Prado, $10,000 and Nicks, $28,000.WOH2. Interest of 5% on each partner's capital balance on January 1.3. Any remaining net income divided equally.(Continued)

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OBJ. 2 "s original investment Catrina Santana contributed a patent, accounts receivable, and $23,000 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 $85,000. The accounts receivable control account was $38.000, with an allowance for doubtful accounts of $2,000. The partnership also assumed a $10,000 account payable owed to a Santana supplier. Provide the journal entry for Santana's contribution to the partnership.

OBJ. 2 "s original investment Catrina Santana contributed a patent, accounts receivable, and $23,000 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 $85,000. The accounts receivable control account was $38.000, with an allowance for doubtful accounts of $2,000. The partnership also assumed a $10,000 account payable owed to a Santana supplier. Provide the journal entry for Santana's contribution to the partnership.

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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