Rocker and Willow are partners with capital balances of P30,000 and P70,000, respectively. Rocker has a 30% interest in profits and losses. At this time, the partnership has decided to admit Rod and Marie as new partners. Rod contributes cash of P55,000 for a 20% interest in capital and 30% interest in profits and losses. Marie contributes cash of P10,000 and an equipment for a 25% interest in capital and 35% interest in profits and losses. If bonus amounting to P18,250 is given to the old partners, what is the value of equipment contributed by Marie?

Rocker and Willow are partners with capital balances of P30,000 and P70,000, respectively. Rocker has a 30% interest in profits and losses. At this time, the partnership has decided to admit Rod and Marie as new partners. Rod contributes cash of P55,000 for a 20% interest in capital and 30% interest in profits and losses. Marie contributes cash of P10,000 and an equipment for a 25% interest in capital and 35% interest in profits and losses. If bonus amounting to P18,250 is given to the old partners, what is the value of equipment contributed by Marie?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 2BCRQ

See similar textbooks

Similar questions

Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.
Rome and Bert are partners with capital balances of P60,000 and P70,000. Rome has a 30% interest in the partnership profits and losses. At this time, the partnership decided to admit Star and Robert as new partners. Star contributes cash of P165,000 for a 30% interest in the profits and losses and a 20% interest in the capital of the firm. Robert contributes cash of P20,000 and an equipment for a 35% interest in the profits and losses and a 25% interest in the firm's capital. Bert receives a bonus of P38,325 after the admission of Star and Robert.HOW MUCH IS THE EQUIPMENT CONTRIBUTED BY ROBERT? (show step by step thank you)
Marga, David and Anna are partners with capital balances of P784,000, P2,730,000 and P1,190,000 respectively, sharing profits and losses in the ratio of 3:2:1. Cassandra is admitted as a new partner bringing with him expertise and is to invest cash for a 25% interest in the partnership which includes a credit of P735,000 for bonus upon her admission. How much cash should Cassandra contribute?
Kim Locke and Mary Leigh Coker have capital accounts of $430,000 and $484,000, respectively. Jeff Doggett and Danny Cambrey are to join the partnership. Doggett invests $515,000 in the partnership for which he receives a capital credit of $515,000. Cambrey purchases a one-half interest from Locke for $315,000 and a one-fourth interest from Coker for $94,000. Determine the capital balances of the partners after the admission of Doggett and Cambrey. Capital balances Locke $enter a dollar amount Coker enter a dollar amount Doggett enter a dollar amount Cambrey enter a dollar amount Total Capital $enter a total amount
The capital accounts of Trent Henry and Tim Chou have balances of $147,400 and $92,600, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $27,400 and one-fourth of Chou’s interest for $19,000. Clarke contributes $75,000 cash to the partnership, for which she is to receive an ownership equity of $75,000. a. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the chart of accounts for the exact wording of the account titles
Jane, Honey, and Nica are partners with present capital balances of $40,000, $50,000 and $20,000 respectively. The partners share profits and losses according to the following percentages: 50% for Jane, 20% for Honey, and 30% for Nica. Delia is to join the partnership upon contributing $55,000 to the partnership in exchange for a 35% interest in capital and a 20% interest in profits and losses. An appraisal of the existing partnerships' assets reveals the following: Accounts Receivable - 20,000 overvalued; Inventory - 10,000 overvalued; Land - 10,000 undervalued; Building - 15,000 undervalued. a. How much is the capital balance of Honey in the new partnership assuming bonus method? b. How much is the bonus of Nica in the new partnership assuming bonus method?
The capital accounts of Trent Henry and Tim Chou have balances of $136, 500 and $95, 500, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $31, 100 and one - fourth of Chou's interest for $19, 200. Clarke contributes $71, 200 cash to the partnership, for which she is to receive an ownership equity of $71, 200. Required: a. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partners?
Donna, Rick, and Daisy are partners sharing profits in a 3:3:4 ratio, respectively. They have been overwhelmed by the amount of work recently and have agreed to admit Bud to the partnership for a cash investment. The current balances in their capital accounts are P60,000, P80,000, and P120,000, respectively. 13. Assuming Bud is given a 20% interest in the partnership for an P80,000 cash investment, the entry to record his investment includes a: a. credit to Bud, capital for P80,000 b. debit to loss on sale of partnership interest for P12,000 C. debit to Daisy, capital for P4,800 d credit to Donna, capital for P3,600 14. Assuming Bud is given a 15% interest in the partnership for a P70,000 cash investment, the entry to record his investment includes a: a. credit to Donna, capital for P6,150 b. credit to Bud, capital for P70,000 C. debit to Rick, capital for P6,150 d. credit to gain on sale of partnership interest for P20,500
Rachel, Monica and Phoebe are partners with capital balances of P896,000, P3,120,000 and 3,160,( respectively, sharing profits and losses in the ration 3:2:1. Janice is admitted as a new partner bringing with her expertise and is to invest cash for a 25% interest in the partnership, which includes a credit of P840,000 bonus upon his admission. 1.How much cash should Janice contribute? A.1,560,000 B. 1,800,000 C. 2,540,000 D. 672,000
The capital accounts of Loida Cadenas and Cristina San Jose have balances of P 150, 000 and P 110,000 respectively. Daria Labalan and Helen Magada are to be admitted to the partnership. Labalan buysone- fifth of Cardenas’ interest for P 35, 000 and one- fourth of San Jose’s interest for P 25, 000. Magadacontributes P 70, 000 cash to the partnership, for which she is to receive an ownership equity of P 70,000. REQUIRED:1. Journalize the entries to record the admission of Labalan and Magada.2. What are the capital balances of each partner after the admission of the new partners?
The capital accounts of Trent Henry and Tim Chou have balances of $145,500 and $98,300, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $29,100 and one-fourth of Chou’s interest for $19,500. Clarke contributes $74,500 cash to the partnership, for which she is to receive an ownership equity of $74,500. CHART OF ACCOUNTS Henry, Chou, Gilbert, and Clarke General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Interest Receivable 115 Notes Receivable 116 Inventory 117 Office Supplies 118 Store Supplies 119 Prepaid Insurance 120 Land 123 Equipment 124 Accumulated Depreciation-Equipment 129 Asset Revaluations 133 Patent REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Equipment 523…
Hansel and Gretel are partners. Hansel's capital balance is P130,000 and Gretel's is P150,000. They agreed to share equally in profits and losses. Both partners agree to accept a third investor, Mocha, as a new partner with a 25% interest in the partnership. Mocha intends to invest P115,000 in cash. The bonus that is granted to Hansel and Gretel is closest to