Partnership Dissolution: Problem 3 Aika and Nicole's capital is 600,000 and 480,000, respectively. Profit Share Ratio 7:3. Princessita directly purchased a 1/3 interest by paying Aika 195,000 and Nicole 225,000. The land account is increased by 180,000 before Princessita is accepted. Questions: 10. What is the capital of Aika after admitting Princessita? 11. What is the capital of Nicole after admitting Princessita? 12. What is the capital of Princessita after her admission?

Partnership Dissolution: Problem 3 Aika and Nicole's capital is 600,000 and 480,000, respectively. Profit Share Ratio 7:3. Princessita directly purchased a 1/3 interest by paying Aika 195,000 and Nicole 225,000. The land account is increased by 180,000 before Princessita is accepted. Questions: 10. What is the capital of Aika after admitting Princessita? 11. What is the capital of Nicole after admitting Princessita? 12. What is the capital of Princessita after her admission?

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

Required information Skip to question In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following questions is independent of the others. Refer to the information provided above. David invests $50,000 for a one-fifth interest. What amount of goodwill will be recorded? Multiple Choice A. $4,000 B. $20,000 C. $40,000 D. $15,000
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $237,000 and that Greene is to invest $79,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 6% on original investments and the remainder equally Interest of 6% on original investments, salary allowances of $50,000 to Morrison and $70,000 to Greene, and the remainder equally Plan (e), except that Greene is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $118,000 and (2) net income of $225,000. Round answers to the nearest whole dollar. (1) (2)…
Problem III The following are the capital balances and share in each profit of Ring Partnership: Aragorn 300 50% Legolas 200 30% Gimli 200 20% 13. If the partnership was liquidated and P50 is ready for distribution, how much will Gimli received?
plz solve??
Use the information to solve problem (a) completely please
Dividing Partnership Income Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $255,000 and that Shannon is to invest $85,000. Black is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income are being considered: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 5% on original investments and the remainder equally. Interest of 5% on original investments, salary allowances of $50,000 to Black and $75,000 to Shannon, and the remainder equally. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $157,000 and (2) net income of $215,000. Round answers to the nearest whole dollar. (1) (2)…
3. Show solution in good accounting form
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $279,000 and that Greene is to invest $93,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 5% on original investments and the remainder equally Interest of 5% on original investments, salary allowances of $60,000 to Morrison and $90,000 to Greene, and the remainder equally Plan (e), except that Greene is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $175,000 and (2) net income of $245,000. Round answers to the nearest whole dollar. (1) (2)…
ILLUSTRATION 37 (Adjustment of capitals) Carter, Jones and Jennifer are partner sharing profits and losses in the ratio 3: 3:1. On Carter's retirement, capital of Jones and Jennifer were $ 8,000 and $ 82,000 respectively. They decided that their Capitals should be in the new profit sharing ratio. Calculate the adjustment of capital if new profit sharing ratio is 1:1. Adjustments to be made through cash. Any excess or deficit to paid off or brought in by the partners.
Dividing partnership income Dahl and Westhoff have decided to form a partnership. They have agreed that Dahl is to invest $400,000 and that Westhoff is to invest $100,000. Dahl is to devote one-third time to the business, and Westhoff is to devote two-thirds time. The following plans for the division of income are being considered: a. Equal division b. In the ratio of original investments c. In the ratio of time devoted to the business d. Interest of 5% on original investments and the remainder equally e. Interest of 5% on original investments, salary allowances of $80,000 to Dahl and $160,000 to Westhoff, and the remainder equally f. Plan (e), except that Westhoff is also to be allowed a bonus of $50,000 if net income exceeds $200,000 Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $300,000 and (2) net income of $750,000. Round answers to the nearest whole dollar. (1) $300,000 (2) $750,000 (2) $750,000…