9. On December 31, 2015, the adjusted trial balance of Shoe Co. has the following balances: Total assets of P2,250,000; Nike,capital P643,750; Adidas, capital P481,250; and Vans, capital P1,125,000. The partners share profits and losses in the ratioof 1:1:2, respectively. It was agreed among the partners that Nike retires from the partnership. The partnership assets areto be adjusted to their fair value of P2,550,000 as of December 31, 2015 before the capital balance of Nike is closed. Thepartnership also suffered a net loss of P750,000 for the current year. The partnership paid Nike the amount of P542,500cash for his total interest in the partnership.What is the total capital of Adidas after the retirement of Nike?A. P372,500B. P368,750C. P365,000D. P497,500

Total Assets Nike Capital Adidas Capital Vans Capital Balance on December 31, 2015 P22,50,000…

Answered: On December 31, 2015, the adjusted…

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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The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to Robbins after interest of 10 percent is given to each partner based on beginning capital balances. On January 2, 2018, Jeffrey invests $37,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 10 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2018, the partnership reports a net income of $15,000. Prepare the journal entry to record Jeffrey’s entrance into the partnership on January 2, 2018. Determine the allocation of income at the end of 2018.
The following capital balances as of October 31 , 2016 for the Partnership of Wilma , Xelyn and Yska were as follows : Wilma , Capital 204,000 Xelyn , Capital 132,000 Yska , Capital 360,000 Wilma has decided to retire from the partnership on October 31. Their profit and loss ratio is 3/4 / 3 to Wilma , Xelyn and Yska , respectively . The partnership will purchase the interest of Wilma by paying 234,000. Questions 1. How much is the TOTAL Goodwill? 2. What amount of capital will be credited to Xelyn? 3. What amount of capital will be credited to Yska? 4. How much is Total Adjusted Capital after Wilma has retired ?
In 2017, Ryan, Chen and Win established a firm partnership and they agreed to share the profits in a 2:1:1 ratio. In mid-2018, with operations running profitably, they decided to dissolve the firm's partnership. Based on the following facts, prepare a summary of the partner's capital balance showing how much, if any, is available to settle in final settlement. A B Value of net assets paid in to partnership firm... $50,000 $22,500 $20,000 Company partnership net income for 1976 $30,000 divided into Ratio 2:1:1.. $15,000 $7,500 $7,500 1986 private take... $15,000 $10,000 $10,000 Net assets at the time of dissolution are assessed For $65,000 and distributed to $16,250 $16,250 Allies according to a ratio of 2:1:1..... $32,500
After a long dispute, AA, BB, and CC decided to liquidate their partnership. Their capital balances as of January 2, 2022 are as follows: AA, capital (25%) P750,000 BB, capital (40%) 900,000 CC, capital (35%) 560,000 The partnership’s total assets on this date include P250,000 cash and a receivable from AA amounting to P50,000 and noncash assets of a certain amount. Total liabilities to outside creditors, immediately before liquidation, are P640,000 and the partnership still owes CC an amount of P20,000. Liquidation expenses of P25,000 were paid during the liquidation proceedings. At the end of liquidation, BB received P575,000. How much were the non-cash assets sold for?
On December 31, 2030, ABC Partnership’s Statement of Financial Positions shows that A, B and C have capital balances of P1,000,000, P600,000 and P400,000 with profit or loss ratio of 1:3:6.On January 1, 2030, C retired from the partnership and received P700,000. At the time of C’s retirement, an asset of the partnership is undervalued. What is the capital balance of A after the retirement of C? a. P925,000b. P1,075,000c. P1,12500d. P1,050,000
"Partner A, Partner B, Partner C, and Partner D have decided to terminate their partnership. The partnership's balance sheet at the time they decide to wind up is as follows: Cash 100000, Noncash Assets 300000, Accounts Payable 100000, Partner A Capital 25000, Partner B Capital 110000, Partner C Capital 100000,Partner D Capital 65000. During the winding up of the partnership, the other assets are sold for $150,000 and the accounts payable are paid. Partner B and Partner C are personally solvent, but Partner A and Partner D are personally insolvent. The partners share profits and losses in the ratio of 4:2:1:3. what amount will be distributed to Partner B upon liquidation of the partnership?" 11667 68333 110000 80000
The partnership of Maya, Nova, and Oscar was dissolved. By August 1, 2014, all assets hadbeen converted into cash and all partnership liabilities were paid. The partnership balancesheet on August 1, 2014 (with partner residual profit and loss sharing percentages) was asfollows: Cash $100,000 Maya, capital (30%) $ 8,000 Nova, capital (20%) (120,000) Oscar, capital (50%) 212,000 Total assets $100,000 Total equity $ 100,000 The value of partners' personal assets and liabilities on August 1, 2014 were as follows: Maya Nova Oscar Personal assets $148,000 $240,000 $112,000 Personal liabilities 144,000 160,000 120,000 Required:Prepare the final statement of partnership liquidation.
The partnership of Cruz, Amistoso, and Galicia decided to liquidate their partnership on May 31, 2016. Before liquidating and sharing of net income, their capital balances are asfollows: Cruz (30%) P875,000, Amistoso (30%) P630,000, and Galicia (40%) P770,000. Net income from January 1 to May 31 is P420,000. The liabilities of the partnership amounted to P735,000 and its total assets include cash amounting to P245,000. Unsettled liabilities are P385,000. Cruz invested additional cash enough to settle their partnership’s indebtedness. Amistoso is personally solvent, Galicia is personally insolvent,and Cruz becomes insolvent after investing the cash needed by the partnership. How much will Cruz receive as a result of their liquidation? A. 315,000B. 462,000C. 385,000D. 0
The K & L Partnership was established since 2005. On January 1, 2015, the partners agree to admit partner (M). Capital account balances and profit and loss sharing ratios at January 1, 2015, before the admission of partner (M), are as follows: Partner (K) (30%) $63,000 Partner (L) (70%) $97,000 at the time of admission the following assets have a book value and fair value as: Book Value Fair value Inventory 100,000 120,000 Building 130,000 100,000 Partner (M) invested $120,000 cash to the partners for 40% of capital interest and the partners agree about assets revaluation. The journal entry to record the goodwill is a. Dr. Goodwill $35,000 / Cr. (M) capital $35,000. a. Dr. Goodwill $35,000 / Cr. (M) capital $35,000. b. Dr. Goodwill $30,000 /Cr. (K) capital $9,000, (L)…
The following balances as of the end of 2009 for the partnership of ping, pong, and pang, together with their respective profit and loss percentages, were as follows:Assets - 360,000; ping, loan - 18,000; ping, capital (20%) - 84,000; pong, capital (20%) - 78,000; pang, capital (60%) - 180,000ping decided to retire from the partnership. Parties agreed to adjust the assets to their fair market value of P420,000 as of December 31, 2009. ping will be paid P98,000 for ping’s total partnership interest (amount is inclusive of ping's loan). No goodwill is to be recorded. After ping’s retirement, what will be the balance of pong’s capital account?
Prior to liquidating their partnership, Craig and Jenny had capital accounts of $60,570 and $116,570, respectively. The partnership assets were sold for $214,550. The partnership had $23,370 of liabilities. Craig and Jenny share income and losses equally. Determine the amount received by Jenny as a final distribution from liquidation of the partnership.
The K & L Partnership was established since 2005. On January 1, 2015, the partners agree to admit partner (M). Capital account balances and profit and loss sharing ratios at January 1, 2015, before the admission of partner (M), are as follows: Partner (K) (30%) $63,000 Partner (L) (70%) $97,000 at the time of admission the following assets have a book value and fair value as: Book Value Fair value Inventory 100,000 120,000 Building 130,000 100,000 Partner (M) invested $120,000 cash to the partners for 50% of capital interest and the partners agree about assets non-revaluation. The journal entry to record the admission of partner (M) is a. Dr. Cash $120,000/Cr. (K) capital $6,000, (L) capital $14,000, (M) capital $100,000. a. Dr. Cash $120,000/Cr. (K) capital $6,000, (L)…

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