Question 3 Abmad, Sami, and Barhoom formed a partnership named ASB House improvement Center on 1/1/2017. They contributed the following to the new company: Net Book value ($) Fair market value/ Agreed upon value (S) Ahmed's contribution: Cash Land Sami's contribution: 40,000 40,000 80,000 50,000 22,000 32,000 3,000 Cash Equipment Supplies Barhoom's contribution: Cash 22,000 28,000 2,600 Truck Accounts receivable Allowance for doubtful accounts 12,000 20,000 6,500 600 12,000 15,000 6,500 800 Required: Prepare the journal entry for the formation of the partnership. You can prepare separate entries or one entry. Account title

Question 3 Abmad, Sami, and Barhoom formed a partnership named ASB House improvement Center on 1/1/2017. They contributed the following to the new company: Net Book value ($) Fair market value/ Agreed upon value (S) Ahmed's contribution: Cash Land Sami's contribution: 40,000 40,000 80,000 50,000 22,000 32,000 3,000 Cash Equipment Supplies Barhoom's contribution: Cash 22,000 28,000 2,600 Truck Accounts receivable Allowance for doubtful accounts 12,000 20,000 6,500 600 12,000 15,000 6,500 800 Required: Prepare the journal entry for the formation of the partnership. You can prepare separate entries or one entry. Account title

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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Problem 14-50 (LO 14-1, 14-4) Dennis, Suzy, and Katherine form a partnership. Dennis and Suzy give equipment and a building, respectively. Katherine agrees to perform all of the accounting and office work in exchange for a 10% interest. Dennis's equipment Suzy's building Katherine's services Required: FMV $ 100,000 $ 100,000 $ 0 Basis $ 10,000 $ 45,000 Partnership 45% 451 $ 0 10% a. What amount of gain, if any, do each of the partners recognize? b. What is the basis for each partner in his or her partnership interest? c. What is the basis to the partnership of each asset? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required a Required b Required c What amount of gain, if any, do each of the partners recognize? Partner Dennis Suzy Gain $ 10,000 $ 45,000 Katherine $ 20,000 Required a Required b>
A. 350,000 B. 870,000 C. 1,270,000 D. 1,770,000
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Please don't provide answer in image format thank you Terrilson Trading is a company in the business of manufacturing parts for train wagons. Terri and Nilson formed this company in 2015 after they were both retrenched from their employment. The following information pertains to the business activities of the partnership for the year ended 31 August 2022. Extract from the statement of financial position as at 31 August 2022: 2022 2021 R R Land and buildings (at cost) 1,010,600 660,600 Equipment (at cost) 624,900 569,400 Accumulated depreciation: Equipment 175,200 74,400 Long-term loan 283,600 198,200 Members’ contributions 1,276,500 1,080,100 Retained earnings 231,200 79,700 Loans to members 98,100 34,100 Loans from members 118,700 - Distribution to members payable 78,200 108,600 Inventory 59,100 33,200 Dividend receivable 21,600 101,200 Trade payables control 137,000 66,900 Accrued security expenses 7,700 3,400 Current tax payable 62,200 40,000 Accrued rental income 6,200…
1. Cyril, Joseph, and Reggie formed a partnership named CJR Partnership Ltd. Cyril contributed cash of P150,000 and his store equipment that originally cost P160,000 with thesecond value of P125,000. Joseph will contribute P180,000 cash while Reggie, whose family sells computers, will contribute P250,000 cash and a brand-new computer that cost his family’s computer dealership P150,000 but with a regular selling price of P160,000. They agreed to share profits and losses equally. Questions: a.Assuming that you are hired as the new accountant of the new partnership, how will yourecord the contributions made by Cyril and Reggie? Justify your answer in no more than three (3) sentences b.Give the adjusting entry to be made at the date of formation. Partners MM and LL have profit and loss agreement with the following provisions: salaries of P30,000 and P45,000 for MM and LL, respectively; a bonus to MM of 10% net income after salaries and bonus; and interest of 10% on average capital balances…
Chapter 2: Partnerships Exercise - 1 Computing initial partner investments Careem and Labeeb establish an equal partnership in both cquity and profits to operate a used- furniture business under the name of C&L Furniture. Careem contributes furniture inventory that cost $120,000 and has fair value of $160,000. Labceb contributes $60,000 cash and delivery cquipment that cost $80,000 and has a fair valuc of $60,000. Required: Assume that the initial noncash contributions of the partners are recorded at fair market value. A) Compute the ending balance of cach capital account under the bonus and goodwill approaches. B) Prepare the journal entries of the initial investments under both approaches.
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Question 2 AQUIL and BADIR formed a partnership on January 2, 2022 by contributing their respective assets and equities subject to adjustments. On that date, the following were provided: Cash Accounts Receivable Inventories Land Building Equipment Intangible assets Accounts Payable Other Liabilities AQUIL BADIR 28,000 62,000 200,000 600,000 120,000 200,000 600,000 50,000 35,000 2,000 500,000 200,00 3,000 180,000 250,000 350,000