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 8SPA
1.
To determine
Prepare the general
2.
To determine
Prepare the necessary journal entry by assuming that Person D is paid $50,000 for the book value of Person D’s capital account.
3.
To determine
Prepare the general journal entry for the partnership.
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3) Dalia, Stephanie, and Judy were partners under a written agreement made in January that the partnership should continue for ten years. During the same year, Judy being indebted to a Mr. Greene, sold and conveyed her interest in the partnership to Mr. Greene.
The partnership paid Mr. Greene $50,000 as Judy's share of the profits for that year, but refused Mr. Greene permission to inspect the books or to come into the managing office of the partnership. Mr.Greene brings an action setting forth the above facts.
Explain The Reasons For Your Answer:
(a) Does Judy selling her interest in the partnership to Mr. Greene dissolve the partnership? Explain the reason for your answer.
(b) To what is Mr. Greene entitled:
(1) Inspection of partnership books?
(2) Participation in management of the partnership?
(3) Account of partnership transactions?
Admission of a New Partner: David Breck has a capital balance of $20,000 and he sells one half of his partnership interest to Cris Davis for $18,000 on January 4th, 2003. Breck is selling a $10,000 recorded interest in the partnership. Write the journal entry for this transaction.
Admission of a new partner : David Breck decides that he would like to remain in the business, and instead Cris Davis invests $18,000 cash in the business. Record the journal entry for this transaction.
Morsal one of four partners has decided to leave the business and has agreed to take the payment
of $40,000. The partners, Macey, Morsal, Stephanie and Noemi, have capital accounts just prior
to the dissolution of the partnership in its current form of. $25,000, $36,000, $57,000, and
$43,000 respectively. The partners have shared the benefits or losses of the operations in the
following relationship: 1:1:3:2.
Two days later, a new partner Joe put money into the now existing partnership in the amount of
$45,000 for 30% of the partnership.
Required: What would be the general entry to record the departure of Morsal?
What would be the general entry to record the addition of Joe?
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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