Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 12, Problem 15E
a.
To determine
Record
b. 1
To determine
Provide journal entry.
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Admitting New Partner With Bonus
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are
$93,000 and $130,500, respectively, prior to the revaluation.
a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank.
L. Bowers, Cap ✔ 4,000 ✓
V. Lipscomb, Cal ✓4,000 ✓
Equipmen
Feedback
►Check My Work
b. Provide the journal entry for Ortiz's admission under the following independent situations:
1. Ortiz purchased a 20% interest for $47,000. If an amount box does not require an entry, leave it blank.
Cash ✓
47,000 ✓
L. Bowers, Cap ✓
V. Lipscomb, Cal ✔
M. Ortiz, Capi✓ ✓
Feedback
Check My Work
8,000✔
✓
52,500✔
2. Ortiz purchased a 30% interest for $118,000. If an amount box does not require an entry, leave it blank.
Cash ✔
118,000 ✓
L.…
Admitting New Partner With Bonus
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued
downward by $11,000. The capital balances of each partner are $94,500 and $131,500, respectively, prior to the revaluation.
a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank.
L. Bowers, Capital
V. Lipscomb, Capital
Equipment
Feedback
✓
L. Bowers, Capital
V. Lipscomb, Capital
M. Ortiz, Capital
5,500
Feedback
5,500
Check My Work
a. Adjust the equipment and adjust each partner's equity account in their income-sharing ratio
11,000
b. Provide the journal entry for Ortiz's admission under the following independent situations:
1. Ortiz purchased a 20% interest for $46,000. If an amount box does not require an entry, leave it blank.
Cash
menem
46,000
1,500 X
1,500 X
43,000 X
Check My Work
b.1.…
Admitting New Partner With Bonus
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $9,000. The capital balances of each partner are $74,500 and $103,000, respectively, prior to the revaluation.
Question Content Area
a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry, leave it blank.
blank
EquipmentL. Bowers, CapitalL. Bowers, DrawingV. Lipscomb, DrawingM. Ortiz, Capital
- Select -
- Select -
CashEquipmentL. Bowers, DrawingV. Lipscomb, CapitalM. Ortiz, Capital
- Select -
- Select -
EquipmentL. Bowers, CapitalV. Lipscomb, CapitalM. Ortiz, CapitalM. Ortiz, Drawing
- Select -
- Select -
Question Content Area
b. Provide the journal entry for Ortiz’s admission under the following independent situations:
1. Ortiz purchased a 20%…
Chapter 12 Solutions
Financial Accounting
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 1PEACh. 12 - Prob. 1PEBCh. 12 - Prob. 2PEACh. 12 - Prob. 2PEBCh. 12 - Prob. 3PEACh. 12 - Prob. 3PEBCh. 12 - Prob. 4PEACh. 12 - Prob. 4PEBCh. 12 - Prior to liquidating their partnership, Parker and...Ch. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Prob. 6PEACh. 12 - Prob. 6PEBCh. 12 - Prob. 7PEACh. 12 - Eclipse Architects earned 1,800,000 during 2016...Ch. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Marvel Media, LLC, has three members: WLKT...Ch. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - The statement of members equity for Bonanza, LLC,...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Liquidating partnershipscapital deficiency Lewis,...Ch. 12 - Prob. 22ECh. 12 - Prob. 23ECh. 12 - Statement of partnership liquidation After closing...Ch. 12 - Prob. 25ECh. 12 - Prob. 26ECh. 12 - The accounting firm of Deloitte Touche is the...Ch. 12 - Prob. 28ECh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Statement of partnership liquidation After the...Ch. 12 - Prob. 6PACh. 12 - Prob. 1PBCh. 12 - Prob. 2PBCh. 12 - Prob. 3PBCh. 12 - Prob. 4PBCh. 12 - Statement of partnership liquidation After the...Ch. 12 - On August 3, the firm of Chapelle, Rock, and Pryor...Ch. 12 - Prob. 1CPCh. 12 - Prob. 2CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CP
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