The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5.3.2 ratio, respectively. The capital account balances on January 1, 2021, were as follows: Apple, capital Bere, capital Carroll, capital Total partners' capital The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is: Multiple Choice $25,000 $75.000 $ 25,000 75,000 50,000 $150,000 $37,500

The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5.3.2 ratio, respectively. The capital account balances on January 1, 2021, were as follows: Apple, capital Bere, capital Carroll, capital Total partners' capital The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is: Multiple Choice $25,000 $75.000 $ 25,000 75,000 50,000 $150,000 $37,500

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

See similar textbooks

Similar questions

The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.
On January 1, 2021, A, B, C and D formed Bakya Trading Co., a partnership, with capitalcontributions as follows: a, 50,000; B,25,000; C 25,000 and D 20,000. The partnership contractprovided that each partner shall receive a 5% interest on contributed capital, and that A and B shallreceive salaries of 5,000 and 3,000 respectively. The contract also provided that C shall receive aminimum of 2,500 per annum and D a minimum of 6,000, which is inclusive of amounts representinginterest and share of remaining profits. The balance of the profits shall be distributed to A,B,C and Din the ratio of 3;3;2;2. What amount must be earned by the partnership, before any charge for interestand salaries so that A may receive an aggregate of 12,500 including interest, salary and share ofprofits? a. 16,667b. 30,000c. 30,667d. 32,333
The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2018, were as follows: $ 25,000 Apple, capital Bere, capital Carroll, capital 75,000 50,000 Total partners' capital $150,000 The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is: Multiple Cholce $25,000. $30,000. $37,500. $75,000. $90.000.
Bimbim and Queen are partners who share profits and losses in a ratio of 3:2, respectively, and have the following capital balances on Dec. 31, 2020: Bimbim Capital, P2,000,000 Cr. And Queen Capital, P1,500,000 Cr. Assume that the partners agreed to let Gian into the partnership by investing P1,000,000 for a 1/4 interest. Gian’s capital balance will be _______
LLL, MMM and NNN are partners who share profits and losses 5:3:2, respectively. On October 1, 2020, they have the following capital balances: LLL – P296,000; MMM – P520,000 and NNN – P384,000. The assets and liabilities of the partnership are recorded at their current fair value. OOO is to be admitted as a new partner with a 20% interest in capital and earnings. LLL was credited a bonus of P10,000. How much cash should OOO contribute? Baymax Inc is insolvent and its statement of affairs show: Estimated gain on realization of assets, P2,000,000; Estimated loss on realization of assets, P2,560,000; Additional assets, P1,200,000; Additional liabilities, P960,000; Ordinary shares, P12,000,000; Deficit, P11,200,000. The pro-rata payment to stockholders on the peso is:Note: You answer can have decimal value. Example: P0.99 (Round off to two decimal places)