Partnership Opening Entries Lisa Morris and Joyce Laski agreed on September 1 to go into business as partners. According to the agreement, Morris is to contribute $40,000 cash and Laski is to contribute $65,000 cash. Provide a separate journal entry for the investment of each partner. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Sept. 1 3 3 4 Sept. 1 4 in

Partnership Opening Entries Lisa Morris and Joyce Laski agreed on September 1 to go into business as partners. According to the agreement, Morris is to contribute $40,000 cash and Laski is to contribute $65,000 cash. Provide a separate journal entry for the investment of each partner. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Sept. 1 3 3 4 Sept. 1 4 in

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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Partner bonuses, statement of partnership equity The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: Dennis Overton $43,860 Ben Testerman 60,630 The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $24,510 cash for a 19% interest. 2. Net income of $170,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $40,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell. 3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income. Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank. Angel Investor Associates Statement of Partnership Equity For the Year Ended December…
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Partner bonuses, statement of partnership equity The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: Dennis Overton $82,080 Ben Testerman 24,320 The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $45,600 cash for a 30% interest. 2. Net income of $190,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $40,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell. 3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income. Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank. Angel Investor Associates Statement of Partnership Equity For the Year Ended December…
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xA A. AaBbCcDdE AaBbCcDdE AaBbCcDc AaBbCcDdEe AaBb( AaBbCcDdEe Normal No Spacing Heading 1 Heading 2 Title Subtitle Styles Pane Dictate Sensitivi March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: $ 31,000 124,000 100,000 Cash Liabilities March, capital April, capital $108,000 59,000 95,000 Accounts receivable Inventory Land, building, and equipment (net) 73,000 May, capital 66,000 Total liabilities Total assets $328,000 $328,000 and capital Prepare journal entries for the following transactions a. Sold all inventory for $76,000 cash. b. Paid $13,500 in liquidation expenses. c. Paid $60,000 of the partnership's liabilities. d. Collected $76,000 of the…
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Dividing Partnership Net Income Steve King and Chelsy Boxer formed a partnership, dividing income as follows: 1. Annual salary allowance to Boxer of $88,740. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to King and Boxer, 1:2. King and Boxer had $81,000 and $99,000, respectively, in their January 1 capital balances. Net income for the year was $153,000. Required: How much net income should be distributed to King and Boxer? King: $ Boxer:
Preparing Partial Financial Statements and Closing Entries The partnership of Robo and Swing, CPAS, reported revenues of $215,000 and expenses of $80,000 on their year-end work sheet. Their capital balances as of January 1, 20--, were $55,000 for I. Robo and $45,000 for B. Swing. No additional investments were made during the year. As stated in their partnership agreement, after withdrawing salary allowances of $65,000 for Robo and $35,000 for Swing, the partners each withdrew their full 10% interest allowances on their January 1 capital balances. No additional withdrawals were made. Any remaining net income is to be divided on a 45-55 basis. Required: 1. Prepare the lower portion of the income statement of the partnership for the year ended December 31, 20--, showing the division of the partnership net income for the year.