QUESTION 2Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of$46,000 and equipment iwth a cost of $184,000 and accumulated depreciation of $101,000. The partners agree that the equipment is to be valued at$68,100, that $3,700 of the accounts receivable are complete worthless and are not to be accepted by the partnership, and that $1,800 is a reasonableallowance for the uncollectibility of the remaining accounts receivable. Tim contribues cash of $20,500 and merchandise inventory of $45,500. Thepartners agree that the merchandise inventory is to be valued at $49,000.ournalize the entries in the partnership accounts for (a Jesse's investment and (b) Tim's investment using the chart of accounts below.Accounts ReceivableCashMerchandise InventoryCcounts PayableEcumulated DepreciationEquipmentJesse, CapitalJesse, DrawingSuppliesTim. CapitalTim, Drawingowance for Doubtful Accountsr your answers into the table below.Ehe account names carefully (exactly as shown above) and follow formatting instructions below.IOT USE A DECIMAL WITH ZEROES FOR WHOLE DOLLAR AMOUNTS AND USE COMMAS APPROPRIATELY.V THE DEBIT/CREDIT DOES NOT REQUIRE AN ENTRY, LEAVE IT BLANK.uired, round your answers to two decimal places.AccountDebitCredit

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QUESTION 2 Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $46,000 and equipment iwth a cost of $184,000 and accumulated depreciation of $101.000. The partners agree that the equipment is to be valued at $68,100, that $3,700 of the accounts receivable are complete worthless and are not to be accepted by the partnership, and that $1,800 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contribues cash of $20,500 and merchandise inventory of $45,500. The partners agree that the merchandise inventory is to be valued at $49,000. Tournalize the entries in the partnership accounts for (a Jesse's investment and (b) Tim's investment using the chart of accounts below. Accounts Receivable ccounts Payable rcumulated Deprociation Cash Equipment Merchandise Inventory Supplior

QUESTION 2 Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $46,000 and equipment iwth a cost of $184,000 and accumulated depreciation of $101.000. The partners agree that the equipment is to be valued at $68,100, that $3,700 of the accounts receivable are complete worthless and are not to be accepted by the partnership, and that $1,800 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contribues cash of $20,500 and merchandise inventory of $45,500. The partners agree that the merchandise inventory is to be valued at $49,000. Tournalize the entries in the partnership accounts for (a Jesse's investment and (b) Tim's investment using the chart of accounts below. Accounts Receivable ccounts Payable rcumulated Deprociation Cash Equipment Merchandise Inventory Supplior

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 capital accounts upon formation of partnership-Goodwill Method Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports net assets of $30,000. Partner B is contributing cash of $45,000. The partners agree that the initial capital of the partnership should be shared equally. What will be the initial balance of the Capital Accounts of the partners assuming that the partners wish to employ the Goodwill Method? Select one: a. Partner A Partner B $90,000 $90,000 b. Partner A Partner B $37,500 $37,500 c. Partner A Partner B $45,000 $45,000 d. Partner A Partner B $30,000 $45,000
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Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $47,000 and equipment with a cost of $193,000 and accumulated depreciation of $101,000. The partners agree that the equipment is to be valued at $86,000, that $3,700 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,400 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $28,300 and merchandise inventory of $56,000. The partners agree that the merchandise inventory is to be valued at $60,500. Journalize the entries to record in the partnership accounts (a) Barton's investment and (b) Fallows's investment. If an amount box does not require an entry, leave it blank. (a) fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9…
A AND B FORMED A PARTNERSHIP A B CASH 200K ACCOUNTS RECEIVABLE 100K INVENTORY 160K LAND 100K BUILDING 240K TOTAL 460K 340K Additional information:  Included in accounts receivable is an account amounting to ₱40,000 which is deemed uncollectible.  The inventory has an estimated selling price of ₱200,000 and estimated costs to sell of ₱20,000.  An unpaid mortgage of ₱20,000 on the land is assumed by the partnership.  The building is under-depreciated by ₱50,000.  The building also has an unpaid mortgage amounting to ₱30,000, but the mortgage is not assumed by the partnership. B agreed to settle the mortgage using his personal funds.  The note payable is stated at face amount. A proper valuation requires the recognition of a ₱30,000 discount on note payable.  A and B shall share in profits and losses 60% and 40%, respectively. Requirements: a. Compute for the adjusted balances in the partners' capital accounts. b. Assume that a partner's capital shall be increased…
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developed 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…
A and B are combining their separate businesses to form a partnership. Presented here are the Statements of Financial Position before any adjustments: Current Assets Non-current Assets Total Liabilities ● A 617,500 848,000 150,000 B 672,500 970,000 178,000 They agreed to set up P5,000 each as uncollectible accounts on their accounts receivable. They also found out that their Non-current assets (all depreciable assets) were under-depreciated by P80,000 each. The partners agreed to equalize their capital balance upon formation. Compute the total capital of the partnership.
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Ending Partner balances Burns and Allan have formed a partnership and invested $20.000 and $40,000, respectively. They have agreed to share profits as follows: 1) Burns is to receive a "salary" of $20.000 and Allan is to receive a "salary" of $30,000. 2) $30.000 is to be allocated according to their original capital contributions to the partnership. 3) The remainder is to be allocated 2:3 respectively Assuming that the business had a loss of $15000, allocate the loss to Burns and Allan.
PARTNERSHIP FORMATION