One of the members in the fellowship resigned, Nicki. Nicki's ownership in profit and loss is 25%.From her resignation, Nicki was paid $80 million to settle her holdings. The partners' total equitybefore the recognition of goodwill on Nicki's exit was $300 million. However, when Nicki left, theremaining partners' capital, excluding her share in goodwill, totaled $280 million. So how muchgoodwill does the company approve?

Goodwill in context to accounting is defined as that intangible asset that arises when a business…

Answered: One of the members in the fellowship…

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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Mazin are Mazid partners sharing profits and losses in the ratio of 2: 2. Muhammed is admitted as a new partner for 1 / 5th share. Muhammed brings OMR 8,000 as his capital and brings only 60% of his share of Goodwill in cash Total Goodwill of the firm is OMR 60,000. Calculate goodwill when Mazin and Mazid withdraw 50% of the amount brought in by Muhammed as his share of goodwill in cash. a. OMR 12,000 b. OMR 3,600 c OMR 7,200 d None of the options are correct
Mercedes, Melinda and Julieta are partners sharing profit and loss 40%, 30% and 30% respectively. Capital balances of the partners before the retirement of Mercedes were at P450,000, P425,000 and P400,000. The company sustained a net loss of P45,000 during the year. The partners were allowed to withdraw P10,000 each Instruction. Give the entry to record the retirement of Mercedes, assuming no Bonus or Revaluation will be recorded
(for this question you do not need to show your work) A local partnership was in the process of liquidating and reported the following Capital account balances: Justice, capital (40% of all profits and losses) $26,000 Zobart, capital (35%) Douglass, capital (25%) 20,000 (15,000) Douglass indicated that the $14,000 deficit would be covered by a forthcoming contribution. However, the two remaining partners asked to receive the $31,000 that was then in the cash account. 1. How much of the $31,000 in the cash account should Justice receive? 2. How much of the $31,000 in the cash account should Zobart receive?
A local partnership is liquidating and is currently reporting the following capital balances: Desai has indicated that a forthcoming contribution will cover the $24,000 deficit. However, the two remaining partners have asked to receive the $52,000 in cash that is currently available. How much of this money should each of the partners receive? Barley, $22,000; Carter, $30,000. Barley, $32,000; Carter, $20,000. Barley, $29,000; Carter, $23,000. Barley, $32,500; Carter, $19,500.
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RAMI has owned and operated a proprietorship for several years. On January 1, 2018, he decides to terminate this business and become a partner in the firm of ASMA and RAMI. ✓ RAMI's investment in the partnership consists of HK$ 140,000 in CASH, and the following assets of the proprietorship: ✔ ACCOUNTS RECEIVABLE HK$130,000 less allowance for doubtful accounts of HK$20,000, ✓ and EQUIPMENT HK$200,000 less accumulated depreciation of HK$45,000. It is agreed that the allowance for doubtful accounts should be HK$28, 000 for the partnership. The fair value of the equipment is HK$175, 500. ASMA brings with her $200,000 Book value in CASH, $ 280,000 Fair value. on Dec. 31, 2018, the net income was $100,000 and the income ratios are RAMI 70%, ASMA 30%. Prepare the journal entry to record the division of the net income. Instructions Journalize RAMI's admission to the firm of ASMA and RAMI.
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Please help me
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Lewis, Sadie and Warren are partners with the following capital balances and profit and loss percentages: Lewis: $120,000 (60%) Sadie: $ 60,000 (20%) Warren: $ 40,000 (20%) Sadie wishes to withdraw from the partnership and it is agreed that she will receive her current capital balance plus his share of any valuation adjustments associated with the fair value of the whole business being greater than book value. Assume that the fair value of the whole business is $100,000 greater than the book value. The bonus method is being used. What will the balance of Warren’s capital account be after the withdrawal of Sadie.

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