The balance of Partner B's Capital account after the sale is
Q: The CL Partnership has two partners, Cleo andLeo. Each partner’s basis in his or her partnership…
A: Partnership It refers to an agreement between two or more people to oversee the business operations…
Q: Prior to liquidating their partnership, Craig and Jenny had capital accounts of $60,950 and…
A: Carrying value of non cash assets prior to liquidation(A) = $60950+$105620+$25770 = $192,340 Sale of…
Q: Jill has a basis in her partnership interest of $50,000. What gain or loss does Jill recognize, and…
A: when a student asks multiple subparts expert can answer 1st 3 subparts - liquidation process -…
Q: Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their…
A: The partnership is an agreement between two or more partners where partners are agreed to work…
Q: John, Sal and Pam form a partnership to operate an accounting business. For each of the situations…
A: 1. John: a) income or gain recognized by the partner :($75000/3*2) - ($45000) = $ 5,000…
Q: Determine the amount received by Fowler as a final distribution from liquidation of the partnership.
A: Given information is: Prior to liquidating their partnership, Fowler and Brooks had capital accounts…
Q: Jerry and Sherry own and operate a partnership. Jerry’s capital balance is $50,000 and Sherry’s is…
A: Hello. Since your question has multiple sub-parts, we will solve the first three complete sub-parts…
Q: The partnership of Kris, Erich and Eunice reflected beginning capital balances of P75.000; P25,000…
A: Partnership Admission: A firm seeks new partners with the idea of business expansion. According to…
Q: A partnership has the following account balances: Cash, $84,000; Other Assets, $610,000;…
A: Firstly, we shall calculate the losses to the partners.
Q: Xavier and Yolanda have original investments of $54,400 and $94,800, respectively, in a partnership.…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Olga contributed $10,000 in exchange for a 50% capital interest in OP Partnership. Piotr also…
A: Given, Loss of First year = $15,000. Of which, 25% for Piotr and 75% to Olga. Assets worth $5000…
Q: Travis, Jennifer, and Henry have partnership capital account balances of $150000, $300000 and…
A: A partnership is a commercial arrangement in which two or more people or organizations work together…
Q: K, F, and G are partners with capital balances of $60,000, $40,000 and $30,000 and who share in the…
A: A partnership is a sort of business in which two or more people work together to accomplish a common…
Q: Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn).…
A: The objective of the question is to calculate the new capital balance of Tomas after the…
Q: Myles Etter and Crystal Santori are partners who share in the income equally and have capital…
A: Partnership It is that form of organization which is owned and managed by two or more persons who…
Q: Prior to liquidating their partnership, Cameron and Solivita had capital accounts of $44,000 and…
A: Solution Partnership consists two or more people who combine their resources to form a business and…
Q: ancis, Gary, and Joel are partners who share profits and losses in the ratio of 2:3:5. The partners…
A: Liquidation means where the business of firm is closed down , assets are sold out and liabilities…
Q: Prior to liquidating their partnership, Myers and Baird had capital accounts of $22,000 and $30,000,…
A: Initially, loss/gain on liquidation shall be found and shall be distributed among the partners.
Q: Xavier and Yolanda have original investments of $52,800 and $109,800, respectively, in a…
A: A partnership is an agreement between two or more partners where partners agree to work together for…
Q: A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios…
A: Introduction: Liquidation of partnership firm: The liquidation of the partnership firm ceases the…
Q: Farah, Marwah, and Waseem are partners in a firm. They have capital balances of $80,000, $60,000,…
A: 1. Bonus Method - the payment to Marwah in excess of his capital balance will be shouldered by the…
Q: Prior to liquidating their partnership, Craig and Jenny had capital accounts of $65,450 and…
A: In the partnership when the firm goes out of business it is known as liquidation. While liquidating…
Q: B. Higgins, J. Mayo, and N. Rice have capital balances of $87,500, $80,000, and $66,000,…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Harry, Tony, and Liza run a partnership firm and share in the profits 1:3:2, respectively. In the…
A: 1. Ist and most important thing is that we have to pass entry for distribution to partners…
Q: John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. Their…
A: Business organization means a combination of all resources to form out entity to run a business.…
Q: Partners A and B comprise the AB partnership and each has a $90,000 capital balance. The existing…
A: The objective of the question is to calculate the capital balance of Partner A after the admission…
Q: Prepare a cash distribution plan.
A: To prepare a cash distribution plan, we need to first calculate the amount of cash that will be…
Q: Prior to liquidating their partnership, Craig and Jenny had capital accounts of $71,200 and…
A: Liquidation is the process of winding up the company by selling all the assets to generate funds to…
Q: Partner A contributes cash of $70,000 for a 70% interest in capital and profits. Partner B…
A: Partner A contributes cash = $70000 Partner B contributes asset = $20000 Share of capitals and…
Q: A local partnership has assets of cash of $5,000 and a building recorded at $80,000. All liabilities…
A: The profit in a partnership form is distributed among the partner according to the capital…
Q: The partners of the R & S Partnership shared net income and losses in a 6:4 ratio and had capital…
A: a) The journal entry using bonus method is shown below, Account title Debit Credit Cash Dr…
Q: William and Ardi's capital balances are $12.000 and $8,000, respectively. The partnership firm owes…
A: Total Capital=W's Capital+A's Capital=$12,000+$8,000=$20,000
Q: May, Jun, and Julie have partnership capital account balances of P225,000, P450,000 and P105,000,…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Jerry and Sherry own and operate a partnership. Jerry's capital balance is $50,000 and Sherry's is…
A: Hello. Since your question has multiple sub-parts, we will solve the first three complete sub-parts…
Q: Alpha and Beta are partners who share income in the ratio of 12 and have capital balances of $40,000…
A: Alpha and Beta (1:2) None cash asset $110,000 Sales amount. $ 50,000
Q: B. Higgins, J. Mayo, and N. Rice have capital balances of $93,500, $83,000, and $63,000,…
A: The journal entries are prepared to record the transactions on a regular basis. The bonus is paid to…
Q: Long-term partners, A, B, and C have capital balances of P160,000, P60,000 and P50,000,…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: If Pierce is to receive a final settlement of P 180,000, how much should be the proceeds from sale…
A: If Pierce is to receive a final settlement of P 180,000, proceeds from the sale of the non-cash…
Q: Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their…
A: In partnerships, realization is the process by which all existing assets except cash are sold and…
Q: Need help with this question
A:
Q: The partnership agreement for Wilson, Pickett & Nelson, a general partnership, provided that profits…
A: In accounting for partnerships, profit or losses earned by partnership firm will be shared by…
Q: Assuming Cash Available for distribution amounted to P200,000 the partners Aloha, Brooke and Cole…
A: Cash available for distribution among partners is divided in the ratio of final capital.
Q: The partnership of Ace, Ball, Eaton, and Lake currently holds three assets: Cash, $10,000; Land,…
A: so, ParticularsAceBallEatonLakeReported balances$25,000$28,000$20,000$22,000Maximum losses on land…
Q: May, Jun, and Julie have partnership capital account balances of P225,000, P450,000 and P105,000,…
A: Asset Revaluation Method: Assets are initially recorded at their original price; however, they will…
Partners A, B, and C have capital account balances of $120,000 each. The income and loss ratio is 5:2:3, respectively. In the process of liquidating the partnership, noncash assets with a book value of $100,000 are sold for $40,000. The balance of Partner B's Capital account after the sale is
Step by step
Solved in 2 steps
- Xavier and Yolanda have original investments of $46,000 and $103,600, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $26,800 and $31,800, respectively; and the remainder to be divided equally. How much of the net income of $111,000 is allocated to Xavier? Oa. $47,240 Ob. $56,688 Oc. $36,000 Od. $26,800Shirley contributes property to a new partnership with a value of $1,000,000 and a basis of $400,000 that is secured by a $500,000 nonrecourse note. Under the terms of the partnership agreement, Shirley will be allocated 25% of all profits. The partnership agreement also states that "excess nonrecourse liabilities" will be allocated to partners according to profit ratios. How much of the nonrecourse liability will be allocated to Shirley? please dont provide answer in images thank youAlpha 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.$15,300
- 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…A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell’s creditors have filed a $21,000 claim against the partnership’s assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. If the assets can be sold for $190,000, what is the minimum amount that Bell’s creditors would receive? –0– $2,000 $2,800 $6,000Anna desires to purchase a 1/4 capital and profit and loss interest in the partnership of A, B, and C. The three partners agree to sell Ann 1/4 of their respective capital and profit and loss interest in exchange for a total payment of P40,000. The capital accounts and the respective percentage in interest in profits and losses immediately before the sale to lisa are as follows: A, capital (60%) P 80,000 B, capital (30%) P 40,000 C, capital (10%) P 20,000 Total partnership capital P 140,000 Some assets are not fairly valued, and the partners decided to have partnership revaluation prior to the acquisition of interest by Anna. Immediately after Anna's acquisition, what should be the capital balances of A, B, and C respectively? A. 69,0000, 34,500, 16,500 B. 77,000, 38,500, 19,500 C. 92,000, 46,500, 22,000 D. 60,000, 30,000, 15,000
- Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn). Their capital balances are $80,000 and $120,000, respectively. The partnership generated net income of $30,000. What is Saturn's capital balance after closing the revenue and expense accounts to the capital accounts?A and B are partners with initial investment of $60,000 and $40,000 respectively. They share income and loss by 60% for A and 40% for B. They accepted C as a new partner in the partnership. Required: Record the admission of C under each of the following separate assumptions: (1) C purchased one-half of A's interest for $35,000 cash (2) C invests cash of $40,000 in the partnership and receives 25% ownership interest in the new partnership. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE BETWEEN NUMBERS Dr Cash 100000 Cr. Land 100000The 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__________
- 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 $Jerry and Sherry own and operate a partnership. Jerry’s capital balance is $50,000 and Sherry’s is $55,000. Jerry and Sherry decided to admit a new partner, Allison, to their partnership. By the terms of their partnership agreement, Jerry and Sherry share income/loss equally. Allison intends to contribute $40,000 cash to receive a twenty-five percent interest in the partnership Required: a. Revalue the partnership assets b. Determine the total equity of the partnership after the new partner is admitted c. Determine the new partner share of the total equity d. Determine the bonus resulting from Allison’s equity of her contribution e. Make journal entries to record Allison’s admission to the partnership. Please solve sub-part e. Show Your Work:Prior to liquidating their partnership, Craig and Jenny had capital accounts of $60,570 and $116,570, respectively. The partnership assets were sold for $214,550. The partnership had $23,370 of liabilities. Craig and Jenny share income and losses equally. Determine the amount received by Jenny as a final distribution from liquidation of the partnership.