Saleem and Raheem share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Badr into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Badr are: Saleem (60%) $300,000 Raheem (40%) 300,000 Total $600,000 Required: 1- Prepare the journal entry(s) for the admission of Badr to the partnership assuming Badr paid $400,000 for the ownership interest. Badr paid the money directly to Saleem and to Raheem for 50% of each of their respective capital interests. The partnership records goodwill. Prepare the journal entry(s) for the admission of Badr to the partnership assuming Badr invested $700,000 for the ownership interest. Badr paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill. 3- Prepare the journal entry(s) for the admission of Badr to the partnership assuming Badr invested $500,000 for the ownership interest. Badr paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.

Saleem and Raheem share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Badr into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Badr are: Saleem (60%) $300,000 Raheem (40%) 300,000 Total $600,000 Required: 1- Prepare the journal entry(s) for the admission of Badr to the partnership assuming Badr paid $400,000 for the ownership interest. Badr paid the money directly to Saleem and to Raheem for 50% of each of their respective capital interests. The partnership records goodwill. Prepare the journal entry(s) for the admission of Badr to the partnership assuming Badr invested $700,000 for the ownership interest. Badr paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill. 3- Prepare the journal entry(s) for the admission of Badr to the partnership assuming Badr invested $500,000 for the ownership interest. Badr paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.

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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A
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 270,000 Adams 240,000 Fergie 230,000 Gomez 220,000 Total capital $ 960,000 Answer each of the following independent questions: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $269,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $355,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda 160,000 Adams 140,000 Fergie 130,000 Gomez 120,000 Answer each A. Assume that the partners and losses 3:3:2:2,respectively. Fergie retires and is paid 151,000 based on the terms of the orginal partnership agreement. If the Goodwill method is used;what is the capital of the remaining three partners? B. Assume that the partners share profit and losses 4:3:2:1, respectively. Peneda retires and is paid 305,000 based on the terms of the orginal partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round intermediate calculations. Round to the nearest amounts. A. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________ B. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________
Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $199,800 and $62,680, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. Assume the sale occurs on December 31. What entry is required by the partnership if the sales price is (a) $66,600? (b) $87,700?
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. Cash Grayson Jackson, Capital Harry Barge, Capital Lewan Gorman, Capital b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ Harry Barge $ Lewan Gorman $
Sammer an Moneer are partners having capital balances of 100,000 and 120,000 respectively, they admit Tala to a one third interest in the partnership capital and profits for investment 130,000, if good method is used in recording tala admission to the parnership: OA. sameer capital will be 120,000 OB. moneer capital will be 130,000 O c. tala capital will be 170,000 OD. good will be recorded to sameer $10,000