Nancy Finch has been operating an apartment-locator service as a sole proprietörship. She and Mellssa Mienaeis $9,000; Furmiture, $13,000; Building (net), $58,000; and Notes Payable, $21,000. To determine Finch's equity in the partnership, she and Michaels hire an independent appraiser. The appraiser values all the assets and liabilities at their book value, except the building, which has a current market va 596,000. Also, there are additional Accounts Payable of $10,000 that Finch will contribute. Michaels will contribute cash equal to Finch's equity in the partnership. Read the requirements. equirement 1. Journalize the entry on the partnership books to record Finch's contribution. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Date Accounts and Explanation Debit Credit Requirements * 1. Journalize the entry on the partnership books to record Finch's contribution. 2. Journalize the entry on the partnership books to record Michaels's contribution. Print Done uirement 2. Journalize the entry on the partnership books to record Michaels's contribution. (Recorere

Nancy Finch has been operating an apartment-locator service as a sole proprietörship. She and Mellssa Mienaeis $9,000; Furmiture, $13,000; Building (net), $58,000; and Notes Payable, $21,000. To determine Finch's equity in the partnership, she and Michaels hire an independent appraiser. The appraiser values all the assets and liabilities at their book value, except the building, which has a current market va 596,000. Also, there are additional Accounts Payable of $10,000 that Finch will contribute. Michaels will contribute cash equal to Finch's equity in the partnership. Read the requirements. equirement 1. Journalize the entry on the partnership books to record Finch's contribution. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Date Accounts and Explanation Debit Credit Requirements * 1. Journalize the entry on the partnership books to record Finch's contribution. 2. Journalize the entry on the partnership books to record Michaels's contribution. Print Done uirement 2. Journalize the entry on the partnership books to record Michaels's contribution. (Recorere

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 24P

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Nancy Freeley has been operating an apartment-locator service as a sole proprietorship. She and Melissa Marcellus have decided to form a partnership. Freeley's contribution consists of Cash, $6,000; Accounts Receivable, $12,000; Furniture, $13,000; Building (net), $53,000; and Notes Payable, $17,000. To determine Freeley's equity in the partnership, she and Marcellus hire an independent appraiser. The appraiser values all the assets and liabilities at their book value, except the building, which has a current market value of $100,000. Also, there are additional Accounts Payable of $3,000 that Freeley will contribute. Marcellus will contribute cash equal to Freeley's equity in the partnership. Requirements 1. Journalize the entry on the partnership books to record Freeley's contribution. 2. Journalize the entry on the partnership books to record Marcellus's contribution.
Jim Bond, a plumber, has been working for Fleming’s Plumbing Supplies for several years. Based on his hard work and the fact that he recently married Ivan Fleming’s daughter, Jim has been invited to enter into a partnership with Fleming. The new partnership will be called Fleming and Bond’s Plumbing Supplies. The terms of the partnership are as follows: (a) Fleming will invest the assets of Fleming’s Plumbing Supplies, and thepartnership will assume all liabilities. The market values of the office and store equipment are estimated to be $18,000 and $8,000, respectively. All other values reported on the balance sheet (shown below) are reasonable approximations of market values. Fleming has no knowledge of any uncollectible accounts receivable.(b) Bond will invest $50,000 cash.(c) Fleming will draw a salary allowance of $50,000 per year, and Bond willreceive $30,000.(d) Each partner will receive 10% interest on the January 1 balance of his capital account.(e) Profits or losses remaining…
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Emilio and Graciela joined together to form a partnership. Emilio contributed a patent, account receivable and $ 35,000 cash to a partnership. The patent had a book value of $ 9,000. The technology covered by the patent has significant market potential. For this reason, the patent was appraised at $ 78,000. Provide the journal entry for Emilio and Graciela Assuming that Fisher is planning to join the Emilio and Graciela’s partnership. Fisher contributed land, inventory and $ 45,000 cash to a partnership. The land has a book value of $ 150,000 and the market value of $ 175,000. The inventory had a book value of $ 65,000 and the market value of $ 27,000. The partnership had a $ 23,000 note payable owed by Fisher that was originally to purchase the land. Provide the journal entry for Fisher’s contribution to partnership. Prior to liquidation their partnership, Manning and Adamo had capital account of $ 50,000 and $ 105,000 respectively. Prior to liquidation, the partnership had no…
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