Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $49,000 and equipment with a cost of $175,000 and accumulated depreciation of $97,000. The partners agree that the equipment is to be valued at $68,200, that $3,400 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,500 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $21,000 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500. Journalize the entries in the partnership accounts for (a) Jesse's investment and (b) Tim's investment. If an amount box does not require an entry, leave it blank.
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- Suppose that Juma and Khamis form a partnership to sell yard equipment. Juma contributes cash of OMR25,000 and office furniture with a cost of OMR15,000, accumulated depreciation of OMR5,000, and a current market value of OMR8,000. The journal entry correctly records Juma's contribution to the partnership would be:Caluguas and Dela Cruz formed a partnership and invested the following assets and liabilities: Fair Market Value Carrying Value Calaguas: Cash P300,000 P300,000 Land 450,000 280,000 Dela Cruz: Cash 100,000 100,000 Building 600,000 520,000 Mortgage Payable (400,000) (400,000) The partners will share profits and losses equally. Required: Prepare the opening journal entry in the books of the partnership.KIM and SHE YUN formed a partnership, each contributing asset to the business. KIM contributed inventory with a current market value in excess of its cost. SHE YUN contributed real estate with a cost in excess of its current market value. At what amount should the partnership record each of the following assets? Inventory Real Estate a Cost Cost b Market Value Cost c Cost Market Value d Market Value Market Value
- Can you please help me with this one by giving a detailed solution? Perhaps if you could, please explain why such amounts would be added or deducted in order to get the book/carrying value? Jo, Lee and Bee are partners who share profits and losses in the ratio of 35:25:40 to Jo, Lee and Bee respectively. The statement of Financial Position of the partnership on December 31, 2017 is as follows: ASSETS Cash: $8,000 Noncash assets: $110,000 LIABILITIES AND CAPITAL Liabilities: $18,000 Loan from Lee: $2,000 Jo, Capital: $32,700 Lee, Capital: $23,500 Bee, Capital: $41,800 On January 1, 2018, the partners decided to liquidate. For the month of January, some assets were sold for a loss of $2,000. Liabilities of $15,000 were paid. Payment to Partners Jo, Lee and Bee from the initial sale of assets were $150, $2,250 and $4,600 respectively. Cash withheld for possible liquidation expenses and unrecognized liabilities amounted to $1,250. What was the book/carrying value of the noncash assets sold…Jen Novinska and Jeff Quinlan form a partnership by combining assets of their separate businesses. The following balance sheet is from Novinska’s sole proprietorship. The market value of Novinska’s equipment is $1,000 and the market value of land is $1,600. Prepare the partnership’s journal entry to record Novinska’s investment.Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are as follows: Jane Kathy Book Value Fair Value Book Value Fair Value Receivable Inventories Equipment Payable P 22,500 22,500 37,500 11,250 P 22,500 33,750 30,000 11,250 P 60,000 67,500 7,500 P67,500 71,250 7,500 The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determine the total assets of the partnership.
- L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are $96,000 and $40,000, respectively, prior to the revaluation.a. Provide the journal entry for the asset revaluation.b. Provide the journal entry for Ortiz’s admission under the following independent situations:1. Ortiz purchased a 20% interest for $20,000.2. Ortiz purchased a 30% interest for $60,000.Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest P200,000 andBrillantes, P300,000. Calamba will devote full time to the business, and Brillantes on part-time only. The following plans forthe division of profits are being considered: a. Equal divisionb. In the ratio of original investmentsc. In the ratio of time devoted to the businessd. Interest of 10% on original investments and the remainder in the ratio of 3:2e. Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes, andthe remainder equally.f. Plan (e), except that Calamba is also to be allowed a bonus equal to the 20% of the amount by which profit exceedsthe salary allowances. Determine the partners’ share in profit or loss for each of the situations above assuming:(1) Profit of P1,500,000(2) Profit of P660,000Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $15,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $3,500.Prepare the entry to record Nichols’s investment in the partnership, assuming the equipment has a fair value of $4,000. What is the account title and explanation? what is debit? what is credit?
- The following condensed balance sheet is for the partnership of Ludolf, Sambal, and Urad, who share profits and losses in the ratio of 6.2.2, respectively. Cash Other assets Total assets Required A $ 52,000 152,000 Required $ 204,000 Required: a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? Complete this question by entering your answers in the tabs below. Liabilities Ludolf, capital Sambal, capital Urad, capital Total liabilities and capital Other assats must be sold For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? $ 38,000 72,000 72,000 22,000 $ 204,000 < Required A BYOn February 14, AA and BB formed a partnership and contributed the following assets at historical costs: AA BB Cash P600,000 P200,000 Inventories ? ? Furniture and fixtures 40,000 Delivery equipment 80,000 Land 300,000 The land was subject to a mortgage which has an unpaid balance of P50,000. The mortgage will be assumed by the partnership. AA and BB agreed to share profits and losses in the ratio of 1:2, respectively. The partners agreed to contribute inventories (BB is to contribute inventories worth 2.5 times the peso value of the inventories to be contributed by AA) in order to have their capital credits in the same ratio as their profits and losses ratio. How much is the capital account of AA upon formation of the partnership?Dylan Howell and Demond Nickles have decided to form a partnership. They have agreed that Howell is to invest $50,000 and that Nickles is to invest $75,000. Howell is to devote full time to the business, and Nickles is to devote one-half time. The following plans for the division of income are being considered:a. Equal divisionb. In the ratio of original investmentsc. In the ratio of time devoted to the businessd. Interest of 10% on original investments and the remainder in the ratio of 3:2e. Interest of 10% on original investments, salary allowances of $38,000 to Howell and $19,000 to Nickles, and the remainder equally.f. Plan (e), except that Howell is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances Instructions For each plan, determine the division of the net income under each of the following assumptions:(1) net income of $420,000 and (2) net income of $150,000. Present the data in tabular form, using the following…