Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 14, Problem 19P
a.
To determine
Determine the capital accounts after person G invests $80,000 in the partnership for an 18 percent capital interest by
b.
To determine
Determine the capital accounts after person G invests $100,000 in the partnership to get a 20 percent capital balance.
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A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabilities $240,000; Nixon, Capital (50 percent of profits and losses) $200,000; Hoover, Capital (20 percent) $120,000; and Polk, Capital (30 percent) $90,000. Each of the following questions should be viewed as an independent situation:a. Grant invests $80,000 in the partnership for an 18 percent capital interest. Goodwill is to be recognized. What are the capital accounts thereafter?b. Grant invests $100,000 in the partnership to get a 20 percent capital balance. Goodwill is not to be recorded. What are the capital accounts thereafter?
A partnership has the following account balances: Cash, $84,000; Other Assets, $610,000; Liabilities, $374,000; Nixon (50 percent of profits and losses), $150,000; Cleveland (30 percent), $100,000; Pierce (20 percent), $70,000. The company liquidates, and $15,000 becomes available to the partners. Who gets the $15,000? Determine how much of this amount should be distributed to each partner. (Do not round intermediate calculations.)
Nixon
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Pierce
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The following is the current balance sheet for a local partnership of doctors:
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$ 58,000 Liabilities
280,000 A, capital
202,000 B, capital
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$ 86,000
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The following questions represent independent situations:
a. E is going to invest enough money in this partnership to receive a 20 percent interest. No goodwill or bonus is to be recorded. How
much should E invest?
b. E contributes $60,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits
and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D,
20 percent. After E makes this investment, what are the individual capital balances?
c. E contributes $60,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The
four…
Chapter 14 Solutions
Advanced Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Prob. 9QCh. 14 - Prob. 10Q
Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - What is a partnership dissolution? Does...Ch. 14 - Prob. 14QCh. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - When a partner withdraws from a partnership, why...Ch. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Prob. 5PCh. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - Prob. 15PCh. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19P
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