respectively. Required: Choose the correct answer with solution. 1. What will be the respective capital balances of Gemmo, Norma, and Ellery after the new partner's admission. 3. $68,460, $45,640, 548,900 b. S48,900, $45,640, S68,460 c. S45,640, S68,460, $48,900 d. $64,860, $49,240, $48,900
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- 1. Jag, Lee and Bench are partners having the following capital balances of P11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. How much is the loss absorption capacity of Lee?Required to answer. Single choice. a. P13,000 b. P45,500 c. P26,000 d. cannot be determined 2. Lebron and Wade, partners who share profits and losses equally decided to liquidate their partnership by installment. The statement of financial position showed Cash – P 35,000; P Liabilities – P 20,000; Lebron, Capital – P71,000; and Wade, Capital – P 54,000. Liquidation expenses amounted to P 10,000. How much cash can be distributed safely toeach partner at this point? a. Lebron-P3,000; Wade- P0 b. Lebron-P5,000; Wade-P500 c. Lebron-P5,000; Wade-0 d. Lebron- P5,000; Wade- P1,0003. On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in the treasury, 10,000 shares subscribed and 10,000 5% Preference Shares, cumulative issued, P 100…Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $6,000 and $4,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $8,000. Question Content Area a. What is the amount of a gain or loss on realization? $fill in the blank a082cef9b012fe9_2 Question Content Area b. How should the gain or loss be divided between Hewitt and Patel? Hewitt $fill in the blank fe57f5f50043050_2 Patel $fill in the blank fe57f5f50043050_4 Question Content Area c. How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0". blankHewitt and PatelDistribution of Cash Hewitt Patel Capital balances before realization $fill in the blank 2e3dfe08df82014_1 $fill in the blank 2e3dfe08df82014_2 Division of gain or loss on realization fill in the blank…3. Partnership Income Distribution: For partnerships G, If partner C’s total share of the partnership’s net income 300,000 and Partner C’s Interest on original Capital Balance is 80,000 and Partner C’s share of the remainder of the partnership’s net income is 120,000, how much is Partner C’s allowance? A. 120,000 B. 100,000 C. 80,000 D. 60,000 E. None of the above
- Bastion Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the EPS for the year for Bastion?You were presented the below transactions for the partners' capital accounts: Jasper, Capital Elena, Capital Daisy, Capital Dr. Cr. Dr Cr. Dr. Cr. 1-Mar 46 5,000 429,600 899,300 1-Apr 5,000 8,000 1-Jun 10,000 20,000 1-Aug 10,000 6,000 1-Sep 3,000 1-Oct 5,000 1,000 10,000 1-Dec 4,000 5,000 50,000 The partnership agreement for P/L division includes the following: Jasper and Elena receive an annual salary of P20,000 and P10,000, respectively. • Elena receives a bonus of 3% of net income before taxes but after bonus. Daisy receives a bonus of 2% of net income before taxes but after bonus. All partners are to receive a 10% interest on their average capital balances. • Remainder is divided equally. Rew The company incur 88,415 loss for the current year operation. Prepare an income statement of the partnership with schedule showing distribution of profits.2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. 1. How much was the loss on realization? a. 50,000 b. 60,000 c. 70,000 d. 80,000
- Interest on drawings was RO. 270 for Saud, RO.180 for Salim and RO. 90 for Sulaimon. The accounting entry for charging interest on drawings to each partners will be: a. Dr: Saud's capital account RO 135 Dr: Salim's capital account RO 90 Dr: Sulaimon's capital account RO 45 Cr: Interest on drawings account RO 270 b. Dr: Saud's capital account RO 270 Dr: Salim's capital account RO 180 Dr: Sulaimon's capital account RO 90 Cr: Interest on drawings account RO 540 c. Dr; Interest on drawing account RO 270 Cr: Saud's capital account RO 135 Cr: Salim's capital account RO 90 Cr: Sulaimon's capital account RO 45 d. Dr: Saud's capital account RO 270 Dr: Salim's capital account RO 180 Dr: Sulaimon's capital account RO 90 Cr: Profit and loss account RO 540Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $41,700 and $79,200, respectively, at the time they decide to terminate the partnership. Noncash assets with a book value of $120,900 are sold for $75,000. What amount of loss on realization should be allocated to Alpha? a.$75,000 b.$41,700 c.$25,000 d.$15,300Hi, can someone help me with this question please?
- 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…4.3 The Capital of bah and Rah are as follows: Bah 25, 000 Rah 15,000 They share profits equally. Kuh will buy 1/5 the interest and earnings of Bah for 8,000 and Dah will buy 1/2 the interest and earnings of Rah for 7,000. REQUIRED: a. Entry to record the admission of the new partners. b. What is the interest of each partner in the new partnership? c. What is the new profit and loss sharing ratio?2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q3. How much additional investment did Chap make? a. 10,000 b. 14,000 c. 15,000 d. 20,000