Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 12, Problem 3PEA
a.
To determine
Provide
b.
To determine
Provide journal entry to admit R.
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Revaluing and Contributing Assets to a Partnership
Marquis Westbury invested $46,000 in the Trenton and Rainwater partnership for ownership equity of $46,000. Prior to the investment, equipment was revalued to a
market value of $317,000 from a book value of $242,000. Daniel Trenton and Ann Marie Rainwater share net income in a 1:3 ratio.
Required:
a. Provide the journal entry for the revaluation of equipment. If an amount box does not require an entry, leave it blank.
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Ann Marie Rainwater, Capital
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Cash
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b. Provide the journal entry to admit Westbury. If an amount box does not require an entry, leave it blank.
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evaluing and Contributing Assets to a Partnership
Marquis Westbury invested $55,000 in the Trenton and Rainwater partnership for ownership equity of $55,000. Prior to the investment, equipment was revalued to a market value of $314,000 from a book value of $236,000. Daniel Trenton and Ann Marie Rainwater share net income in a 1:2 ratio.
Question Content Area
Required:
a. Provide the journal entry for the revaluation of equipment. If an amount box does not require an entry, leave it blank.
blank
Equipment
Question Content Area
b. Provide the journal entry to admit Westbury. If an amount box does not require an entry, leave it blank.
blank
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Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current
market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $93, 000 and $
130,000, respectively. Lewan Gorman is to be admitted to the partnership, contributing $62,000 cash to the
partnership, for which he is to receive an ownership equity of $81,000. All partners share equally in income.
Question Content Area a. Journalize the entry to record the admission of Gorman, who is to receive a bonus
of $19,000. If an amount box does not require an entry, leave it blank. blank Cash 62,000 Lewan Gorman,
Drawing 81,000 Harry Barge, Capital 19,000 Lewan Gorman, Capital 81,000 Question Content Area b.
What are the capital balances of each partner after the admission of the new partner? Partner Balance
Grayson Jackson Sfill in the blank a4bbb009305cfea_1 155,000 Harry Barge Sfill in the blank a4bbb009305
cfea_2 11,000 Lewan Gorman Sfill in the blank a4bbb009305cfea_3…
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 - Prob. 5PEACh. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Prob. 6PEACh. 12 - Prob. 6PEBCh. 12 - Revenue per employee Niles and Cohen, CPAs earned...Ch. 12 - Prob. 7PEBCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 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 - Statement of members equity, admitting new member...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. 21ECh. 12 - Prob. 22ECh. 12 - Statement of partnership liquidation After closing...Ch. 12 - Prob. 24ECh. 12 - Prob. 25ECh. 12 - Revenue per professional staff The accounting firm...Ch. 12 - Prob. 27ECh. 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. 3CPCh. 12 - Prob. 4CP
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