On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%, 20% and 60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest? Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances. O $636000. $716000. O $0.

On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%, 20% and 60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest? Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances. O $636000. $716000. O $0.

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

8. River Ryan, Star Smith and Terra Thomas are equal partners in the RST partnership. On June 15th River withdraws from the partnership. River is given a $100,000 payment for her partnership interest. River had a $70,000, capital account balance at the time of her withdrawal. Required: Prepart he journal entry forRiver's withdrawal from the partnership.
Jason owns stock (basis $4,400), land (basis $2,300), and a partnership interest (basis $15,700). In the current year, Jason decides to sell the land for $3,800 and the partnership interest for $20,100. What is Jason's reportable income? Reportable income +A $ 23,900
May, Jun, and Julie are partners with profit and loss ratio of 2:2:1 and capital balances of P1,200,000, P1,000,000 and P600,000, respectively. Julie decided to withdraw from the partnership to focus on her coffee business. She was paid P1,000,000 by the partnership for her capital interest. The difference in amount is due to the recognition of bonus. How much is the capital balance of May after the withdrawal of Julie?
Xanrea, Yolly, and Zandro formed a partnership. They agreed that their business will continue for 6 years. After 6 years, Zandro decided to sell his share to Mila. Is the sale of Zandro of his share to Mila a ground to dissolve the Partnership? Yes or No? Explain your answer.
May, Jun, and Julie are partners with profit and loss ratio of 2:2:1 and capital balances of P1,200,000, P1,000,000 and P600,000, respectively. Julie decided to withdraw from the partnership to focus on her coffee business. She was paid P1,000,000 by the partnership for her capital interest. The difference in amount is due to the recognition of bonus. How much is the capital balance of May after the withdrawal of Julie?
Jay
Fluffy, Anjelah, and Lopez are partners and share income and losses as follows: Fluffy, 20%; Anjelah, 30%; and Lopez, 50%. The partnership’s capital balances follow: Fluffy, $330; Anjelah, $270; and Lopez, $400. Lopez decides to withdraw from the partnership. Prepare journal entries to record Lopez’s May 1 withdrawal from the partnership under each separate assumption: a. Lopez sells his interest to Mencia for $500 after Mencia is accepted as a partner. b. Lopez gives his interest to a son-in-law, Madrigal, and Madrigal is accepted as a partner. c. Lopez is paid $400 in partnership cash for his equity. d. Lopez is paid $600 in partnership cash for his equity. e. Lopez is paid $70 in partnership cash plus equipment recorded on the partnership books at $40 less its accumulated depreciation of $10.
A Base and Zad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners. All has a capital balance of $(10,000), Basel has a capital balance of $24,000, and Ziad has a capital balance of $36,000. Also, cash balance is $50,000. All is NOT able to pay the amount he owes the partnership ?Which of the following two journal entries are right to record this liquidation case 6,000 4,000 Basel Capital A O Ziad Capital 10,000 All Capital 18,000 Basel capital 32,000 Ziad capital Cash 50,000 4,000 Basel Capital B O Ziad Capital 6,000 10,000 All Capital 18,000 32,000 Basel capital Ziad capital Cash 50,000 Basel Capital .CO Ziad Capital All Capital Basel capital Ziad capital Cash Basel Capital .D O Ziad Capital Ali Capital Basel capital Ziad capital Cash 50,000 10,000 50,000 10,000 50,000 السؤال 6 6,000 4,000 32,000 18,000 5,000 5,000 19,000 31,000
Nancy and Perry are partners, and each has a capital balance of P100,000. To gain admission to the partnership, Mitch pays P52,000 directly to Nancy for one-half of her equity. After the admission of Mitch, the total partners' equity in the records of the partnership will be
Vishal
Haresh G
In 2020, Fred invested $155,000 in a general partnership. Fred's interest is not considered to be a passive activity. If his share of the partnership losses is $108,500 in 2020 and $75,950 in 2021, how much can he deduct in each year? Fred can deduct $fill in the blank 1 in 2020 and $fill in the blank 2 in 2021.