Partnership : Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio. Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners. Requirement-1: To Indicate: The factors to be considered while deciding the partnership agreement

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12SP

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To Indicate: The factors to be considered while deciding the partnership agreement

To determine

Requirement-2:

To prepare: The journal entries for the different cases of admission of new partner

To determine

Requirement-3:

To prepare: The journal entry for the admission of new partner investing cash

To determine

Requirement-4:

To calculate: The equity percentage of new partner after the admission of new partner investing cash

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Ans

Magnus Enterprises has net sales of $1,020,000, net income of $74,500, average current assets of $52,000, average fixed assets of $178,500, and average total assets of $230,500. What is Magnus Enterprises' return on assets?

What is net income using accural accounting?

Answer 2

Question

Chapter 12, Problem 12SP

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To Indicate: The factors to be considered while deciding the partnership agreement

To determine

Requirement-2:

To prepare: The journal entries for the different cases of admission of new partner

To determine

Requirement-3:

To prepare: The journal entry for the admission of new partner investing cash

To determine

Requirement-4:

To calculate: The equity percentage of new partner after the admission of new partner investing cash

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12SP

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To Indicate: The factors to be considered while deciding the partnership agreement

To determine

Requirement-2:

To prepare: The journal entries for the different cases of admission of new partner

To determine

Requirement-3:

To prepare: The journal entry for the admission of new partner investing cash

To determine

Requirement-4:

To calculate: The equity percentage of new partner after the admission of new partner investing cash

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 12SP

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To Indicate: The factors to be considered while deciding the partnership agreement

To determine

Requirement-2:

To prepare: The journal entries for the different cases of admission of new partner

To determine

Requirement-3:

To prepare: The journal entry for the admission of new partner investing cash

To determine

Requirement-4:

To calculate: The equity percentage of new partner after the admission of new partner investing cash

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 12SP

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To Indicate: The factors to be considered while deciding the partnership agreement

To determine

Requirement-2:

To prepare: The journal entries for the different cases of admission of new partner

To determine

Requirement-3:

To prepare: The journal entry for the admission of new partner investing cash

To determine

Requirement-4:

To calculate: The equity percentage of new partner after the admission of new partner investing cash

Answer 6

Chapter 12, Problem 12SP

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To Indicate: The factors to be considered while deciding the partnership agreement

Answer 7

Chapter 12, Problem 12SP

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Allocation of profits: A partnership contract usually provides for the allocation of profit or losses amongst the partners. In the case of absence of allocation method, the partnership net income or losses are allocated equally amongst the partners.

Requirement-1:

To Indicate: The factors to be considered while deciding the partnership agreement

Answer 8

To determine

Requirement-2:

To prepare: The journal entries for the different cases of admission of new partner

Answer 9

To determine

Requirement-2:

To prepare: The journal entries for the different cases of admission of new partner

Answer 10

To determine

Requirement-3:

To prepare: The journal entry for the admission of new partner investing cash

Answer 11

To determine

Requirement-3:

To prepare: The journal entry for the admission of new partner investing cash

Answer 12

To determine

Requirement-4:

To calculate: The equity percentage of new partner after the admission of new partner investing cash

Answer 13

To determine

Requirement-4:

To calculate: The equity percentage of new partner after the admission of new partner investing cash

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Videos

Requirement-2:

To prepare: The journal entries for the different cases of admission of new partner

Requirement-3:

To prepare: The journal entry for the admission of new partner investing cash

Requirement-4:

To calculate: The equity percentage of new partner after the admission of new partner investing cash

Want to see the full answer?

Chapter 12 Solutions

Videos

Requirement-2: To prepare: The journal entries for the different cases of admission of new partner

Requirement-3: To prepare: The journal entry for the admission of new partner investing cash

Requirement-4: To calculate: The equity percentage of new partner after the admission of new partner investing cash

Want to see the full answer?

Chapter 12 Solutions

Requirement-2:

To prepare: The journal entries for the different cases of admission of new partner

Requirement-3:

To prepare: The journal entry for the admission of new partner investing cash

Requirement-4:

To calculate: The equity percentage of new partner after the admission of new partner investing cash