The following items are being invested by A and B to form AB PartnershipAgreedCashInventoryLandBuildingEquipmentTotalMortgage on building assumed by the partnershipInvestment by A120,000.00120,000.00240,000.00480,000.00480.000.00ValuesInvestment by B120,000.00240,000.00480,000.00840,000.00240,000.00600.000.00REQUIRED:A. Prepare entries to record the formation of partnership assuming that A and B agree that eachpartner is to receive a capital credit equal to the agreed values of the net assets each partnerinvested.B. Prepare entities to record the formation of the partnership assuming that A and B agreed thateach partner is to receive an equal capital investment.

When two or more persons engage in same business is called partnership. The owners known as…

Answered: The following items are being invested…

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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k The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances/loss percent) Decrease highest LAP to next highest Debit $ 7,808 34,000 24,808 99,908 Decrease LAPs to next highest: $ 164,908 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $110,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30, 20X1,…
Problem-solving Admissionby Purchase of Interest or Investment of AssetsAngeles. Bondoc and Campos have equities in a partnership as follows: Angeles 300,000 Bondoc 750,000 Campos 700.000 and share of profits and losses in a ration of 5.3.2, respectively. The partners have agreed to admit Dantes to the partnership REQUIRED Prepare the journal entries to record the admission of Dantes to the partnership under each of the following assumptions.1. Dantes paid Angeles P450.000 for his full interest 2. Dantes invested P500,000 for a 25% interest, and bonus is recorded for Dantes 3 Dantes invested P600,000 for a 20% interest, and bonus is recorded for the old partners.
C and D form the CD, LLC even partnership. A contributed land with an adjusted basis of $50 and FMV of $100. D contributed equipment with an adjusted basis of $75 and FMV of $100. Immediately after this contribution, what is the balance in D's 704(b) capital account? $175 $75 $100 $50
Ideu, the d. P3,200 b. Р3,920 C. P4,500 d. P17,800 42. liquidate. All assets of the partnership just prior to liquidation follows: were liquidated. The condemsed statement of financial position Assets Cash Other assets liabilities and capital P140, 000 10, 000 45, 000 105, 000 200, 000 P500,000 P100, 000 liabilities Matias, loan Matias, capital Pagayanon, capital Pescasiosa, capital Total 400, 000 Total P500, 000 Other assets were sold for P247, 500 realizing a loss of P152, 500. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle to the liquidation of the partnership. Pagayanon, P44,000 b Pescasiosa, P30, 500 Matias, P16,000 Matias, P6,000 a C
Please answer question completely. This is one question with two parts so answer question fully ( part a and b)
developed in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…
Identify which one of the following accounting entry for transfer of net profit at the end of the year: Oa. Dr: Profit and Loss account RO 35660 Cr: Partners' Capital Account RO 35660 O b. Dr: Profit and Loss Appropriation account RO 35660 Cr: Profit and Loss account Ro 35660 Oc. Dr: Profit and Loss account RO 35660 Cr: Profit and Loss Appropriation account RO 35660 d. Dr: Partner's Capital Account RO 35660 Cr: Profit and Loss account RO 35660 The balance of capital for partner Mansoor at the end of the year will be: O a. RO 42270 O b. RO 42720 Ос RO 47220 O d. RO 40720 Identify which one of the following accounting entry for payment of salary to partner Mazin at the end of the year: Oa. Dr: Mazin's salary account RO 1000 Cr: Mazin's capital account RO 1000 O b. Dr. Mazin's Salary account RO 12000 Cr: Mazin's capital account RO 12000
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(Cash and Non-cash Contributions) Give the entry to record Partner Luffy into the partnership under each of the independent assumptions: a. Cash of P400.000b. Accounts receivable of P500,000 with an allowance for uncollectible accounts of 150,000. c. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of80% of average cost. d. Equipment that costs P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10 year useful life.
Which of the following is not a separately stated item on a partnership’s Schedule K? a. A $5,000 long---term capital loss b. $20,000 of unrecaptured Section 1250 c. $3,000 charitable contribution d. $5,000 bond interest e. All are separately stated.
1. 2. EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 3. Page 4. 9 Cash contribution amounting to P45,000 each. Kim contributed P35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed P15,000 cash and a delivery vehicle with a fair market value of P195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. Kim contributed P10,000 cash and furniture and fixtures with carrying value of P32,000. Krislam contributed P5,000 cash and a building with a fair market value of P295,000 and an unpaid mortgage of P27,500. Kim and Krislam agreed that building is undervalued by P9,000. Kim contributed P25,000 cash, a store equipment with fair market value of P47,000, and delivery vehicle with a fair market value of P175,000. Krislam, an industrial partner, was to contribute…

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