Prepare the partnership’s Statement of Changes in Equity for the year ended 2016. Determine if any of the partners violated the partnership contract provision on drawings.
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3. Case 3: Partnership
The following are taken from the accounting records of JKL Partnership.
December 31, 2015 December 31, 2016
Joshua, Capital ₱54,900 ₱64,900
Karen, Capital 53,200 63,900
Leo, Capital 44,890 50,890
The partnership generated net income of ₱51,600 in 2016. According to the partnership
contract, Joshua, Karen, and Leo share
each partner to withdraw ₱1,000 monthly. Joshua and Karen each contributed ₱5,000 during
the year. Leo did not make any contributions during the year.
Requirements:
Prepare the partnership’s Statement of Changes in Equity for the year ended 2016.
Determine if any of the partners violated the partnership contract provision on
drawings.
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- On December 31, 2014, LBM Partnership’s accounts show the following. Answer the following questions under the different scenarios. Partner Drawings Capital Lisa $23,000 $48,000 Bart 14,000 30,000 Maggie 10,000 25,000 Scenario1: Net income for the year is $30,000. Income is shared 60% to Lisa, 30% to Bart, and 10% to Maggie. How much is each partner’s share of the income? Lisa Bart Maggie Scenario 2: Net income was $60,000 for the year. Lisa and Bart are each given a $15,000 salary allowance. The remainder is shared equally. Prepare a schedule showing the division of net income. Lisa Bart Maggie Total Salary allowance Remaining income Total division of net income Scenario 3: Net income was $24,000 for the year. Each partner is given a 10% interest on beginning capital balances. Lisa is given a $10,000 salary allowance and $5,000 is…The Calvin-Dogwood Partnership plans to form a new partnership with Alexis. The existing partnership owns inventory that was purchased for $67,900, has a current replacement cost of $56,700, and is priced to sell for $91,400. At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to be admitted? a. $56,700 b. $91,400 c. $67,900 O d. $34,700The statement of financial position of ABC Partnership on May 31,2022 is given below: Cash P25,000 Accounts Payable P70,000 Receivable 25,000 Loan Payable to Allan 30,000 Inventories 180,000 Allan, Capital 75,000 Plant& Equipment 20,000 Bobby, Capital 75,000 Carlo, Capital 100,000 P350,000 P350,000 Dan joined the partnership on June 1, 2022 by investing P75,000 for a 1/5 interest in an agreed capitalization of P325,000. What is the amount of Carlo, capital after the admission of Dan?
- Question 2 Brown, Blue, and Black are in partnership sharing profit and losses in the ratio 2:1:2. The balance sheet for the partnership as of April 15, 2019, was as follows: $ Non-current assets Land Buildings Equipment Current assets Inventory Accounts receivable Cash Total assets Capital account Brown Blue Black Non-current liabilities Mortgage on building Current liabilities Accounts payable Total liabilities 360,000 1,260,000 234,000 108,000 45,000 36,000 315,000 108,000 450,000 1,080,000 90,000 $ 1,854,000 Required: Prepare the following ledger accounts for the dissolution of the partnership: a) Realization account b) Bank account c) Partner's capital account 189,000 2,043,000 873,000 1,080,000 90,000 2,043,000 The partners agreed to dissolve the partnership on April 15, 2019 on the following conditions: Sold the inventory for $72,000, collected $48,000 on accounts receivable and wrote off the remaining accounts, sold equipment for $192,000 and building and land for $1,200,000,…Desiree and Company, a general professional partnership had a gross income of P450,000 and expenses of P125,000 in 2018. The following data pertains to the two (2) individual partners: Amount advanced from partnership income Share in profit and loss ratio Gross income (other business) Expenses (other business) Dividend from domestic company Interest on bank deposit Status Number of dependent children The income tax payable by the partnership is - a. P 0 b. Exempt c. 104,000 d. 113,750 Desiree P 40,000 40% 260,000 65,000 8,500 Married 2 Desiderio P 60,000 60% 3,000 Single noneThe capital balance and the profit and loss sharing ratio of the partnership S, T and U as of December 31, 2010 are: Capital S (30%) $80,000,000 Capital T (50%) $90,000,000 Capital U (20%) $70,000,000 The partners agreed to accept V into the partnership on January 1, 2011, for an interest in capital and operating profit. Requested 1. Journalize V's entry into the partnership assuming that he invested $50,000,000 into the partnership for a 20% ownership interest and that the partnership capital is revalued. 2 Journalize Vs entry into the partnership assuming that he invested $70,000 in the partnership for a 20% ownership interest and that the partnership capital is revalued.
- Problem-solving Admissionby Purchase of Interest or Investment of AssetsAngeles. Bondoc and Campos have equities in a partnership as follows: Angeles 300,000 Bondoc 750,000 Campos 700.000 and share of profits and losses in a ration of 5.3.2, respectively. The partners have agreed to admit Dantes to the partnership REQUIRED Prepare the journal entries to record the admission of Dantes to the partnership under each of the following assumptions.1. Dantes paid Angeles P450.000 for his full interest 2. Dantes invested P500,000 for a 25% interest, and bonus is recorded for Dantes 3 Dantes invested P600,000 for a 20% interest, and bonus is recorded for the old partners.Mrebe and Johannes are in a partnership trading as KwaQongo Farmers. The partners are sharing profits and losses equally. On 30 July 20.1 the following information was extracted from the accounting records of the partnership: EXTRACT OF GIVEN INFORMATION FOR KWAQONGO FARMERS Capital - Mrebe.. Capital- Johannes... Current account- Mrebe (Cr).. Current account-Johannes (Dr). 124 500 110300 45400 28400 Mrebe and Johannes decided to admit Mqithwa from 1 August 20.1. Mqithwa will contribute the following to acquire a fifth of the net asset share of the partnership 1. Cash.. 21300 2. Farming equipment worth.. 58000 Mrebe and Johannes agreed to relinquish 20% of their share in profits or losses to Mqithwa in the ratio of 3:1 respectively All other assets were revalued before admitting Mqithwa to the partnership. A valuation loss was correctly calculated at.. 44000developed in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…
- Assuming the partnership will use a new set of books, prepare the necessary journal entries to record the investment of each partner. 1 4. Gary and Gardo are combining their separate business to form a partnership. Cash and non- cash assets are to be contributed for a total capital of P600,000. The non-cash assets to be contributed and the liabilities to be assumed are as follows: Gardo BV Gary BV P 40,000 60,000 120,000 30,000 FMV P 30,000 90,000 100,000 30,000 FMV Accounts receivable Merchandise inventory Equipment Accounts Payable P 40,000 80,000 20,000 P 80,000 120,000 20,000 Assuming the partners' capital accounts are to be equal after all the contribution of assets and the assumption of liabilities, determine the amount of cash to be contributed by Gary. Using the same information, determine the total assets of the partnership. Using the same information and assuming the excess capital credit over the fair value of the net assets transferred to the partnership is recognized as…:1 Mr. Suhail and Mr. Said decided to start a partnership business. They drafted a partnership deed with the help of a consultant and started the business on 01.11.2020 Some of the key extracts of the partnership deed is given as follows: Resolved that. a. Each partner is to bring in OMR 15,000 as capital b. Each partner is to get 5% interest on capital c. Mr. Suhail is entitled to get a salary of OMR 400 per month d. Firm is entitled to charge 6% interest per annum on partner's drawings. Summary of transactions: November: 2020 Capital contribution: Mr. Suhail -OMR 15000; Mr. Said: OMR a. 15000 b. Purchase of goods- OMR 8.000 sales of goods- OMR 18,000 d. Wages- OMR 200 e. Salary to employees- OMR 1,200 f. Other administrative expenses- OMR 800 g. Rent of building- OMR 1,000 h. Electricity charges- OMR 15 i. Water charges- OMR 5 j. Travelling expenses- OMR 50 k. Furniture purchase- OMR 1,500 1. Electrical fittings- OMR 200 m. Drawings of partners-: Mr. Suhail -OMR 200; Mr. Said; OMR…TRUE OR FALSE
