partnership for $34,000. Prior to the investment, land was revalued to a market value of$130,000 from a book value of $80,000. Tony Vale and Ennis Leighton share net incomeequally. Leighton had a capital balance of $36,000 prior to these transactions.a. Provide the journal entry for the revaluation of land.b. Provide the journal entry to admit Roberts.96 PE 12-3B Revaluing and contributing assets to a partnershipOBJ. 3Demarco Lee invested $60,000 in the Camden and Sayler partnership for ownership equity of$60,000. Prior to the investment, equipment was revalued to a market value of $39,000 froma book value of $30,000. Kevin Camden and Chloe Sayler share net income in a 2:1 ratio.a. Provide the journal entry for the revaluation of equipment.b. Provide the journal entry to admit Lee.598 PE 12-4A Partner bonusOBJ. 3Gomez has a capital balance of $240,000 after adjusting assets to fair market value. Bankscontributes $380,000 to receive a 60% interest in a new partnership with Gomez.Determine the amount and recipient of the partner bonus..598PE 12-4B Partner bonusOBJ. 3Hiro has a capital balance of $75,000 after adjusting assets to fair market value. Marone

Since there are multiple question asked, I am answering for PE 12-3B, If you want answer fro other…

Answered: partnership for $34,000. Prior to the…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 3PEA

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Craig Roberts purchased one-half of Ennis Leighton’s interest in the Vale and Leighton partnership for $34,000. Prior to the investment, land was revalued to a market value of $130,000 from a book value of $80,000. Tony Vale and Ennis Leighton share net income equally. Leighton had a capital balance of $36,000 prior to these transactions.a. Provide the journal entry for the revaluation of land.b. Provide the journal entry to admit Roberts.
Craig Roberts purchased one-half of Ennis Leighton's interest in the Vale and Leighton partnership for $34,000. Prior to the investment, land was revalued to a market value of $130,000 from a book value of $80,000. Tony Vale and Ennis Leighton share net income equally. Leighton had a capital balance of $36,000 prior to these transactions. a. Provide the journal entry for the revaluation of land.
Instructions Instructions Chart of Accounts General Journal Gavin invested $42,000 in the Jason and Kelly Partnership for ownership equity of $42,000. Prior to the investment, land was revalued to a market value of $412,000 from a book value of $211,000 Jason and Kelly share net income in a 1:2 ratio. Required: a. Provide the journal entry for the revaluation of land. b. Provide the journal entry to admit Gavin." *Refer to the Chart of Accounts for exact wording of account titles.
Admitting New Partner With Bonus L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $9,000. The capital balances of each partner are $74,500 and $103,000, respectively, prior to the revaluation. Question Content Area a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry, leave it blank. blank EquipmentL. Bowers, CapitalL. Bowers, DrawingV. Lipscomb, DrawingM. Ortiz, Capital - Select - - Select - CashEquipmentL. Bowers, DrawingV. Lipscomb, CapitalM. Ortiz, Capital - Select - - Select - EquipmentL. Bowers, CapitalV. Lipscomb, CapitalM. Ortiz, CapitalM. Ortiz, Drawing - Select - - Select - Question Content Area b. Provide the journal entry for Ortiz’s admission under the following independent situations: 1. Ortiz purchased a 20%…
Problem #1. Partner'Original Investment Froilan Labausa contributed land, inventory, and P280,000 cash to partnership.The land has a book value of P650,000 and a market value P1,350,000.The inventory has a book value of P600,000 and a market value of P510,000.The partnership also assumed a P350,000 a note payable owed by Labausa that was used to purchase the land.Rosalie Balhag to put up cash equivalent to Labausa's net investment. Required: Prepare a journal entry to report Labausa's and Balhag's investment in the partnership.
Marquis Westbury invested $119,100 in the Trenton and Rainwater partnership for ownership equity of $119,100. Prior to the investment, equipment was revalued to a market value of $77,400 from a book value of $57,300. Daniel Trenton and Ann Marie Rainwater share net income in a 2:1 ratio. Question Content Area a. Journalize the entry for the revaluation of equipment. If an amount box does not require an entry, leave it blank.
EXERCISE 6. Journal Entries - Capital share different from capital contribution. On June 1, 2022, Al and Ace formed a partnership. Al contributed cash of P600,000, inventories of P100,000, and furniture and fixtures of P120,000. On the other hand, Ace contributed cash of P520,000, building of P330,000, and land of P200,000. The building was mortgaged for a loan amounting to P500,000 of which 70% had already been paid. The remaining balance would be assumed by the partnership. The partners agreed to share profits and losses equally. Prepare and upload journal entries related to partnership formation, assuming: 1. Each partner would be credited for the full amount of net assets invested 2. Each partner initially should have equal interest in partnership capital. To ensure this, it was agreed that partner with a lower capital balance had to invest additional cash.
The following items are being invested by A and B to form AB Partnership Agreed Cash Inventory Land Building Equipment Total Mortgage on building assumed by the partnership Investment by A 120,000.00 120,000.00 240,000.00 480,000.00 480.000.00 Values Investment by B 120,000.00 240,000.00 480,000.00 840,000.00 240,000.00 600.000.00 REQUIRED: A. Prepare entries to record the formation of partnership assuming that A and B agree that each partner is to receive a capital credit equal to the agreed values of the net assets each partner invested. B. Prepare entities to record the formation of the partnership assuming that A and B agreed that each partner is to receive an equal capital investment.
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Numbers 1-4 (Investment Method Vs. Bonus Method) Thor and Loki formed a partnership and contributed the following assets with their respective fair values: Loki Cash Land Building Equipment B. 420,000 C. 300,000 D. 432,000 Thor P 180,000 Per partnership agreement, the equipment is to be valued at P120,000. Loki's land and building is subject to a P100,000 real estate mortgage which is assumed by the partnership. The mortgage has P10,000 interest accrued which is to be assumed by Loki. The fair value of the land and building is agreed to be equal to their respective book values. 100,000 1. How much is the final capital credit to Thor? A. 288,000 B. 420,000 C. 300,000 D. 432,000 2. How much is the final capital credit to Loki? A. 288,000 P220,000 300,000 Assuming instead that Thor and Lokd decided to divide capital in the ratio of 40:60, respectively and uses the bonus method, answer the following: B. 420,000 C. 300,000 D. 432,000 3. How much is the final capital credit to Thor? A.…
Accounting C and D form the CD, LLC even partnership. A contributed land with an adjusted basis of $50 and FMV of $100. D contributed equipment with an adjusted basis of $75 and FMV of $100. Immediately after this contribution, what is the balance in D's 704(b) capital account? $175 $75 $100 $50

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