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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
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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allowance of $6,000 per month to partner C. The articles of partnership provide for a salary If C withdrew only $4,000 per month, would a partner's cash withdrawal in lieu of edited to interest from another Dartner and (b) by contribu- tion of assets to the partnership. accoi what 9. Why is it important to state all partnership assets in terms of current prices at the time of the admission of a new partner? 10. Why might a partnership pay a bonus to a newly admitted partner? pactice Exercises PE 12-1A Journalizing partner's original investment Catrina Santana contributed a patent, accounts receivable, and $23,000 cash to a parthersinpa 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 suplier. Provide the journal entry for Santana's contribution to the partnership. EE 12-1 p. 55s OBJ. 2 HOW 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. EE 12-1 p 555 OBJ. 2 PE 12-2A Dividing partnership net incomesbiup Han Lee and Monica Andrews formed a partnership, dividing income as follows: 1. Annual salary allowance to Lee of $32,000. EE 12-2 p. 558 OBJ. 2 1,000,021 bas 2. Interest of 4% on each partner's capital balance on January 1. S000 WOH2 WOH M 3. 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? pnlisblupii gnitsbiupil oTO PE 12-2B Dividing partnership net income John Prado and Ayana Nicks formed a partnership, dividing income as follows: EE 12-2 p. 558 OBJ. 2 1. Annual salary allowance to Prado, $10,000 and Nicks, $28,000. WOH 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided equally. (Continued)
Transcribed Image Text:allowance of $6,000 per month to partner C. The articles of partnership provide for a salary If C withdrew only $4,000 per month, would a partner's cash withdrawal in lieu of edited to interest from another Dartner and (b) by contribu- tion of assets to the partnership. accoi what 9. Why is it important to state all partnership assets in terms of current prices at the time of the admission of a new partner? 10. Why might a partnership pay a bonus to a newly admitted partner? pactice Exercises PE 12-1A Journalizing partner's original investment Catrina Santana contributed a patent, accounts receivable, and $23,000 cash to a parthersinpa 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 suplier. Provide the journal entry for Santana's contribution to the partnership. EE 12-1 p. 55s OBJ. 2 HOW 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. EE 12-1 p 555 OBJ. 2 PE 12-2A Dividing partnership net incomesbiup Han Lee and Monica Andrews formed a partnership, dividing income as follows: 1. Annual salary allowance to Lee of $32,000. EE 12-2 p. 558 OBJ. 2 1,000,021 bas 2. Interest of 4% on each partner's capital balance on January 1. S000 WOH2 WOH M 3. 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? pnlisblupii gnitsbiupil oTO PE 12-2B Dividing partnership net income John Prado and Ayana Nicks formed a partnership, dividing income as follows: EE 12-2 p. 558 OBJ. 2 1. Annual salary allowance to Prado, $10,000 and Nicks, $28,000. WOH 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided equally. (Continued)
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