College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 19, Problem 1CE
To determine
Prepare the
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Moss and Barber organize a partnership on January 1. Moss's initial net investment is $79,000, consisting of cash ($21,000), equipment
($73,000), and a note payable reflecting a bank loan for the new business ($15,000). Barber's initial investment is cash of $35,000.
Prepare journal entries to record (1) Moss's investment and (2) Barber's investment.
No
A
B
Transaction
(1)
(2)
Cash
Equipment
Note payable
Moss, Capital
Cash
Barber, Capital
Answer is not complete.
General Journal
0000
30
Debit
Credit
Larry, Curly and Moe formed the HydroCarpets partnership on
January 1 of the current year. The partners invested assets
and liabilities into the partnership as follows:
Larry:
Cash
$ 55,000
Accounts Receivable
20,000
Curly:
Land
20,000
Building
180,000
Mortgage payable
95,000
Moe:
Cash
35,000
Office equipment
25,000
During the first year of business the net income was
$141,000.
1) Prepare the journal entries to record the partnership setup
2) Prepare net income allocation using following plans
separately. (please note that you need to show me the
calculation formula and steps)
Plan1: on a 3:3:4 ratio of partnership agreement
Plan2: on an original investment ratio respectively
Plan3: Interest allowance of 10% on initial investments,
salary allowance of $35,000 to Larry, $40,000 to Curly and
$45,000 to Moe, with any remaining balance to be shared
equally among the three partners
3) Each partner withdrew $30,000 cash from the partnership
during the year. Please prepare a statement of…
E12-15 Nan Fuentes has been operating an apartment-locator service as a
prietorship. She and Misti Fulmer have decided to form a partnershi
Fuentes's investment consists of cash, $8,000; accounts receivabie
$10,000; furniture, $1,000; a building, $55,000; and a note payable.
$10,000.
To determine Funtes's equity in the partnership, she and Fulmer hime
an independent appraiser. The appraiser values all the assets and liabi
ties at their book value except the building, which has a current marka
value of $90,000. Also there are accounts payable of $3,000.
Requirement
Make the entry on the partnership books to record Fuentes's investment
(pр. 600-601)
Chapter 19 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
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