Reno contributed $214,000 in cash plus equipment valued at $39,000 to the RD Partnership. The journal entry to record the transaction for the partnership is: Multiple Choice Debit Cash $214,000; debit Equipment $39,000; credit Accounts Payable $253,000. Debit Reno, Capital $253,000; credit RD Partnership, Capital $253,000. Debit RD Partnership, Capital $253,000; credit Reno, Capital $253,000. Debit Cash $214,000; debit Equipment $39,000; credit Reno, Capital $253,000.
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- The following condensed balance sheet is for the partnership of Gulian, Singh, and Zahiri, who share profits and losses in the ratio of 4:3:3, respectively: Cash Other assets Gulian, loan Total assets $ 80,000 750,000 31,000 Beginning balances Sold assets $ 861,000 Accounts payable Zahiri, loan Gulian, capital Singh, capital Zahiri, capital Total liabilities and capital Required: The partners decide to liquidate the partnership. Fifty percent of the other assets are sold for $260,000. Prepare a proposed schedule of liquidation at this point in time. Note: Amounts to be deducted should be entered with a minus sign. Adjusted balances Max loss on remaining noncash assets Paid liabilities Safe payments GULIAN, SINGH, AND ZAHIRI Proposed Schedule of Liquidation Cash Other Assets Accounts Payable $ 280,000 41,000 250,000 150,000 140,000 $ 861,000 Gulian, Loan and Capital Singh, Capital Zahiri, Loan & CapitalA partnership has the following accounting amounts: (1) Sales $70,000 (2) Cost of Goods Sold = $40,000 (3) Operating Expenses = $10,000 (4) Salary allocations to partners = $13,000 (5) Interest paid to banks = $2,000 (6) Partners' withdrawals = $8,000 Partnership net income (loss) is ____. One says 18,000 other says (3,000) a. $20,000 b. $18,000 c. $5,000 d. $(3,000)The 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?
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- A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabilities $240,000; Nixon, Capital (50 percent of profits and losses) $200,000; Hoover, Capital (20 percent) $120,000; and Polk, Capital (30 percent) $90,000. Each of the following questions should be viewed as an independent situation: 1. Grant invests $80,000 in the partnership for an 18 percent capital interest. Goodwill is to be recognized. What are the capital accounts thereafter? 2. Grant invests $100,000 in the partnership to get a 20 percent capital balance. Goodwill is not to be recorded. What are the capital accounts thereafter?A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabilities $240,000; Nixon, Capital (50 percent of profits and losses) $200,000; Hoover, Capital (20 percent) $120,000; and Polk, Capital (30 percent) $90,000. Each of the following questions should be viewed as an independent situation:a. Grant invests $80,000 in the partnership for an 18 percent capital interest. Goodwill is to be recognized. What are the capital accounts thereafter?b. Grant invests $100,000 in the partnership to get a 20 percent capital balance. Goodwill is not to be recorded. What are the capital accounts thereafter?The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: $73,440 101,520 Ben Testerman The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $41,040 cash for a 19% interest. Dennis Overton 2. Net income of $280,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $60,000 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 31, 20Y5 Ben Testerman, Capital Balances,…
- Using the attached information, the simple journal entries to record the partners’ contributions include(Cash and Non-cash Contributions) Give the entry to record Partner Luffy into the partnership under each of the independent assumptions: a. Cash of P400.000b. Accounts receivable of P500,000 with an allowance for uncollectible accounts of 150,000. c. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of80% of average cost. d. Equipment that costs P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10 year useful life.Mike Derr and Mark Finger form a partnership by combining assets of their separate businesses. The followingbalance sheet is from Derr’s sole proprietorship. The market value of Derr’s equipment is $5,000and the market value of land is $8,000. Prepare the partnership’s journal entry to record Derr’s investment.