Samuel and Darci are a partner. The partnership capital for Samuel is $ 50,000 and for Darci Is $60,000 josh is admitted as a new partner by investing $50,000 Cash. Josh is given a 20% interest in return for his invest the amount of the bonus to the old partners is

Samuel and Darci are a partner. The partnership capital for Samuel is $ 50,000 and for Darci Is $60,000 josh is admitted as a new partner by investing $50,000 Cash. Josh is given a 20% interest in return for his invest the amount of the bonus to the old partners is

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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Peter and Paul formed a partnership on January 1, 2020, and agreed to share net income and losses 90 percent and 10 percent, respectively. Peter invested cash of P250,000. Paul invested no assets but had a specialized expertise and managed the firm full time. The partnership contract provided for the following: a. Partners' capital accounts are to be credited annually with interest at 5 percent of beginning capital account balances. b. Paul is to be paid a salary of P 10,000 a month. c. Paul is to receive a bonus of 20 percent of income before deduction of salary, bonus and interest on partners' capital account balances. d. Bonus, interest, and Paul salary are considered expenses. The Income Statement for the year ended 2015 for the partnership includes the following: Revenue P 964,500 Expenses (including salary and interest) 497,000 Net income P 467,500 What is Paul's share in net income?
On January 1, 2019, Fhebie and Randy formed a partnership, agreeing to share profits and losses of 40% and 60% respectively. Fhebie invested a parcel of land that cost him P 300,000. Randy invested cash of P 200,000 and an equipment costing P 100,000 but has a fair market value of P 120,000. The land was sold P 350,000 on the same date, three hours after formation of the partnership. How much should be the capital balance of Fhebie right after the formation? At what amount that investment of Randy be recorded?
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
Samuel and Darci are partners. The partnership capital for Samuel is $65,500 and that of Darci is $89,200. Josh is admitted as a new partner by investing $56,800 cash. Josh is given a 20% interest in return for his investment. The amount of the bonus to the old partners is a.$56,800 b.$0 c.$14,500 d.$70,500
Layla, Sameera, and Jana are partners in LSJ partnership. They share income/ loss in a ratio of 50% : 30% : 20% respectively. On 1/1/2021, a new partner (Dana) was admitted into the partnership, forming a new LSJD partnership. To join, Dana invested cash in the business and was given a 32% interest in the new partnership. Based on her investment, Dana's capital account was credited for $64,000. If you know that the total capital for LSJ partnership was $150,000 (before Dana was admitted), and Jana's capital became $27,200 after the transaction. Required: Calculate the capital balance for Jana, before Dana was admitted. (Note: in the answer space, write only the number, with no $ signs or commas. That is, if your answer is $1,000, white it as : 1000 ).
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At the beginning of the current year, Cameron and Harold formed the CH Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% interest. Specifically, Cameron transferred property having a $55,000 FMV, a $28,000 adjusted basis, and subject to a $13,000 liability, which the partnership assumed. Harold contributed $60,000 cash to the partnership. The partnership also borrowed $26,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $27,000 of net ordinary income and reinvested this amount in new property. Read the requirements. Requirement a. What is the partnership's and each partner's gain or loss recognized on the formation of the partnership? (Complete all input fields. Enter a loss with a minus sign or parentheses. If no gain or loss is recognized by a partner or the partnership, enter…
Zach and Christine are partners with USD60,000 and USD20,000 capital balances, respectively. Gains and losses are divided in a 6:4 ratio. The partners decided to form a new partnership with Sookie, who invested land worth USD115,000 in exchange for a 30% interest in the new partnership. Sookie's cost of the land was USD102,000 . What is Zach's capital balance now that Sookie has joined the partnership?