partnership has the following capital balances: Dunberry (40% of profits and losses) 100,000 Fox (30%) 300,000 Jacobs (30%) 200,000 Max is going to pay a total of 200,000 to these three partners personally in order to acquire a 25% ownership interest from each partner. Goodwill is to be recorded. What is Jacobs’ capital balance after the transaction? 150,000 200,000 175,000 195,000

partnership has the following capital balances: Dunberry (40% of profits and losses) 100,000 Fox (30%) 300,000 Jacobs (30%) 200,000 Max is going to pay a total of 200,000 to these three partners personally in order to acquire a 25% ownership interest from each partner. Goodwill is to be recorded. What is Jacobs’ capital balance after the transaction? 150,000 200,000 175,000 195,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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