Question 2Humber College Longo Faculty of BusinessTime recommended 25 Minutes10 Marksalent, a local HR consulting firm, has total partners' equity of $760,000, which is made up ofall, Capital, $600,000, and Reynolds, Capital, $160,000. The partners share profit/(losses) inratio of 75% to Hall and 25% to Reynolds. On July 1, Morris is admitted to the partnershipd given a 20% interest in equity.quired:pare the journal entry to record the admission of Morris under each of the followingelated assumptions, in which Morris invests cash of:1. $190,0002. $230,0003. $110,000Solution Question 2

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Answered: Question 2 Humber College Longo Faculty…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 1CP

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Exercise 12-11 (Algo) Admission of new partner LO P3 The Struter Partnership has total partners' equity of $420,000, which is made up of Main, Capital, $294,000, and Frist, Capital, $126,000. The partners share net income and loss in a ratio of 72% to Main and 28% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption. (1) Record the admission of Adison with an investment of $105,000 for a 20% interest in the equity and a 20% share in any income and loss. (2) Record the admission of Adison with an investment of $140,000 for a 20% interest in the equity and a 20% share in any income and loss. (3) Record the admission of Adison with an investment of $75,000 for a 20% interest in the equity and a 20% share in any income and loss. No A B C Transaction…
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Exercise 12- 11 (Algo) Admission of new partner LO P 3 The Struter Partnership has total partners' equity of $ 480,000, which is made up of Main, Capital, $336, 000, and Frist, Capital, $144, 000. The partners share net income and loss in a ratio of 84% to Main and 16 % to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption. (1) Record the admission of Adison with an investment of $ 120,000 for a 20 % interest in the equity and a 20 % share in any income and loss. (2) Record the admission of Adison with an investment of $155,000 for a 20% interest in the equity and a 20 % share in any income and loss. (3) Record the admission of Adison with an investment of $90,000 for a 20% interest in the equity and a 20% share in any income and loss.Answer is…
Answer question 12-4, including 12-3 for reference.
E 16-7 Recording new partner investment The capital accounts of the Fax and Bel partnership on September 30, 2011, were: Fax capital (75% profit percentage) Bel capital (25% profit percentage) Total capital $140,000 60,000 $200,000 On October 1, Rob was admitted to a 40 percent interest in the partnership when he purchased 40 percent of each existing partner’s capital for $120,000, paid directly to Fax and Bel. REQUIRED 1. Determine the capital balances of Fax, Bel, and Rob after Rob’s admission to the partnership if goodwill is not recorded. 2. Determine the capital balances of Fax, Bel, and Rob after Rob’s admission to the partnership if goodwill is recorded, assuming that the book value and fair value of recorded assets are equal.
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 Ben Testerman $180,000 120,000 The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest. 2. Net income of $150,000 was earned in 2015. 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, 2015. of an amount box does not require an eritry, leave it blank. Angel Investor Associates Statement of Partnership Equity For the Year Ended…
Question #2: Toto profit 56,000 The ABCD Partnership has the following balance sheet at January 1, 2012, prior to the admission of new partner, Eden. Cash and current assets Land Building and equipment Total $ 39,000 234,000 130,000 $ 403,000 Liabilities Adams, capital Barnes, capital Cordas, capital Davis, capital Total $ 52,000 26,000 52,000 117,000 156,000 $ 403,000 Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Eden made his investment, what were the individual capital balances?
Question 28 During the current year, MAC Partnership reported the following items of receipts and expenditures: 7 pts $400,000 Sales, $80,000 utilities and rent, $100,000 salaries to employees, $10,000 of interest income, $40,000 of long-term capital gains, $20,000 guaranteed payment to partner Antonio, and a distribution of $30,000 to partner Carl. Antonio is a 25% general partner. Based on this information, what items will be reflected on Antonio's Schedule K-1? (Clearly label each individual item, including the $ amounts) Edit Format Table 12pt ✓ Paragraph v BIUAT² || L H-P # くく To P A √x O words
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Admitting New Partner With Bonus 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 $20,000. The capital balances of each partner are $75,000 and $101,500, respectively, prior to the revaluation. Question Content Area a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank.b. Provide the journal entry for Ortiz’s admission under the following independent situations: 1. Ortiz purchased a 20% interest for $34,000. If an amount box does not require an entry, leave it blank. 2. Ortiz purchased a 30% interest for $85,000. If an amount box does not require an entry, leave it blank.

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