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 4SEA
1.
To determine
Prepare journal entries for admitting Partner DB and Partner T in to the
2.
To determine
Calculate the ending capital balances of all four partners after the transaction.
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Admitting New Partners
Jeff Bowman and Kristi Emery, who have ending capital balances of $104,000 and
$63,000, respectively, agree to admit two new partners to their business on August 18,
20--. Dan Bridges will buy one-fifth of Bowman's capital interest for $30,800 and one-
fourth of Emery's capital interest for $32,000. Payments will be made directly to the
partners. Anna Terrell will invest $62,800 in the business, for which she will receive a
$62,800 capital interest.
1. Prepare general journal entries showing the transactions admitting Bridges and
Terrell to the partnership.
Page: 1
DOC. POST.
NO. REF.
DATE
ACCOUNT TITLE
DEBIT CREDIT
20--
Aug. 18
3
4
5 Aug. 18
6
7.
2. Calculate the ending capital balances of all four partners after the transactions.
Ending Capital Balances
J. Bowman
K. Emery
D. Bridges
A. Terrell
Admitting New Partners Who Buy an Interest and Contribute Assets
The capital accounts of Trent Henry and Tim Chou have balances of $142,000 and $102,400, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $32,700 and one-fourth of Chou’s interest for $22,500. Clarke contributes $34,600 cash to the partnership, for which she is to receive an ownership equity of $34,600.
a1. Journalize the entry to record the admission of Gilbert. For a compound transaction, if an amount box does not require an entry, leave it blank.
a2. Journalize the entry to record the admission of Clarke.
b. What are the capital balances of each partner after the admission of the new partners?
Partner
Capital Balance
Trent Henry
$
Tim Chou
$
LeAnne Gilbert
$
Becky Clarke
$
Baldo, Celso, and Dado form a partnership on January 1, 2021, each partner investing P250,000 and agree to distribute profits equally.
On August 1, 2021, Baldo was advanced P100,000 by the firm. On September 1, 2021, Celso made a loan to the firm of P200,000. Interest is to be charged on advances to partners and credited on loans by partners at the rate of 12%. Business is unsatisfactory and the partners decide to dissolve. Dado is allowed special compensation of P25,000 for managing the sale of assets and settlement with creditors. On December 31, all assets have been sold, outside creditors have been paid, and cash of P350,000 is distributed to partners. All partners are personally solvent and final settlement is made among partners on February 10, 2022.
How much Celso should receive from the P350,000 cash?
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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