Shine met in a motor vehicle accident and died in January 2024. Mr. Rain asked for your professional consultation on the partnership as a going concern. Please advise
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- Shine met in a motor vehicle accident and died in January 2024. Mr. Rain asked for your professional consultation on the
partnership as a going concern. Please advise
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- Nagisa and Karma are partners in an electrical repair business. Their respective capital balances are P90,000 and P50,000, and they share profits and losses equally. Because the partners are confronted with personal financial problems, they decided to admit a new partner to the partnership. After an extensive interviewing process, they elect to admit Isogai into the partnership. Required: Prepare the journal entry to record the admission of Isogai into the partnership under each of the following conditions: 1. Isogai invests P40,000 for a one-fifth interest in partnership capital. Revaluation method was used and other assets are to be recognized (use “Other Assets”).Nagisa and Karma are partners in an electrical repair business. Their respective capital balances are P90,000 and P50,000, and they share profits and losses equally. Because the partners are confronted with personal financial problems, they decided to admit a new partner to the partnership. After an extensive interviewing process, they elect to admit Isogai into the partnership. Required: Prepare the journal entry to record the admission of Isogai into the partnership under each of the following conditions: Isogai acquires one-fourth of Nagisa’s capital interest by paying P30,000 directly to him. Isogai acquires one-fifth of each of Nagisa’s and Karma’s capital interests. Nagisa receives P25,000 and Karma receives P15,000 directly from Isogai. Isogai acquires a one-fifth capital interest for a P60,000 cash investment in the partnership. Total capital after the admission is to be P200,000. Isogai invests P40,000 for a one-fifth interest in partnership capital. Revaluation method was…Phil Phoenix and Tim Tucson are partners in an electrical repair business. Their respective capital balances are $92,800 and $48,100, and they share profits and losses equally. Because the partners are confronted with personal financial problems, they decided to admit a new partner to the partnership. After an extensive interviewing process they elect to admit Don Dallas into the partnership.Prepare the journal entry to record the admission of Don Dallas into the partnership under each of the following conditions: 1. Don acquires one-fourth of Phil’s capital interest by paying $28,900 directly to him. 2. Don acquires one-fifth of each of Phil’s and Tim’s capital interests. Phil receives $24,500 and Tim receives $15,300 directly from Don. 3. Don acquires a one-fifth capital interest for a $58,200 cash investment in the partnership. Total capital after the admission is to be $199,100. 4. Don invests $39,820 for a one-fifth interest in partnership capital. Implicit…
- A client of yours is forming a partnership and has asked you to review a draft of the partnership agreement. In particular, the client is interested in your thoughts regarding the section dealing with the withdrawal of a partner. Your client also anticipates that on an ongoing basis individual partners will draw significant funds out of the partnership after the fiscal year-end. These withdrawals will be based on a percentage of production fees generated by each of the partners. Selected excerpts from that section are as follows: A withdrawing partner must notify the partnership of his/her intent to withdraw by registered mail. The partnership has the first right to acquire the withdrawing partner’s interest in the partnership and must exercise its right within 60 days. If the partnership is not interested in acquiring the withdrawing partner’s interest, then the interest may be sold to an individual partner or another individual. However, any sale to another individual requires the…A local dental partnership has been liquidated and the final capital balances are If Rasputin contributes additional cash of $20,000 to the partnership, what should happen to it?Serenity, Gwen, Curly, Lane, Hugh, and Hamlet, formed Ace, Bebe and Connie (ABC) Partnership on January 1, 2020. Serenity is an industrial partner assisting the other partners whenever and wherever she can; the others are capitalist partners. At the beginning of the partnership and in the Articles of Partnership, Lane is appointed as Managing partner for purchasing. Subsequently, on January 31, 2021, as business improved, Gwen, Curly, Hugh and Hamlet were appointed as Managing partners for sales. It is agreed that except if expressly authorized by any and/or all of the managing partners in their respective areas of responsibility, no partners may transact business without the consent of the former. Ace and Bebe gave their consent to use their name in the name of the partnership. Connie, however, did not. Contributions of the Partners as well as profit and losses are as follows: PARTNER CONTRIBUTION PROFIT LOSSES Serenity Industry 10% 0% Gwen P1,000,000 10%…
- Roland Go, Gina Go, and Mia Ting organized a partnership and they named it as HO-TING Partnership. After 5 years of operation, Mia Ting met an accident and died. Roland Go and Gina Go continued the operation of the business. They still retained the name GO-TING Partnership. Is the name of the partnership allowed by law despite the death of Mia? Yes or No? Explain.Roland Go, Gina Go, and Mia Ting organized a partnership and they named it asHO-TING Partnership. After 5 years of operation, Mia Ting met an accident anddied. Roland Go and Gina Go continued the operation of the business. They stillretained the name GO-TING Partnership. Is the name of the partnership allowedby law despite the death of Mia? Yes or No? Explain.Adam, Stanley, and Rosalind formed a partnership in State X to distribute beer and wine. Their agreement provided that the partnership would continue until December 31, 2020. Which of the following events would cause the ABC partnership to dissolve? If so, when would the partnership be dissolved? a. Rosalind assigns her interest in the partnership to Mary on April 1, 2018. b. Stanley dies on June 1, 2020. c. Adam withdraws from the partnership on September 15, 2019. d. A creditor of Stanley obtains a charging order against Stanley’s interest on October 9, 2017. e. In 2018, the legislature of State X enacts a statute making the sale or distribution of alcoholic beverages illegal. f. Stanley has a formal accounting of partnership affairs on September 19, 2019.
- Kimble, Sykes, and Gerard open an accounting practice on January 1, 2019, in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $328,000, $240,000, and $152,000, respectively. An articles of partnership agreement is drawn up stipulating the following: Personal drawings are allowed annually up to an amount equal to 10 percent of the partner's beginning capital balance for the year. Profits and losses are allocated according to the following plan: Each partner receives an annual salary allowance of $55 per billable hours worked. Interest is credited to the partners’ capital accounts at the rate of 12 percent of the beginning capital balance for the year. Kimble and Sykes are eligible for an annual bonus of 10 percent of net income after subtracting the bonus, salary allowance, and interest. The…Kimble, Sykes, and Gerard open an accounting practice on January 1, 2022, in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $233,000, $192,500, and $104,500, respectively. An articles of partnership agreement is drawn up stipulating the following: • • Personal drawings are allowed annually up to an amount equal to 10 percent of the partner's beginning capital balance for the year. Profits and losses are allocated according to the following plan: 1. Each partner receives an annual salary allowance of $55 per billable hours worked. 2. Interest is credited to the partners' capital accounts at the rate of 12 percent of the beginning capital balance for the year. 3. Kimble and Sykes are eligible for an annual bonus of 10 percent of net income after subtracting the bonus, salary allowance, and…Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2019, O’Donnell invests a building worth $126,000 and equipment valued at $132,000 as well as $52,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year. O’Donnell will also have added to his capital account 20 percent of partnership income each year (without regard for the preceding interest figure) or $7,000, whichever is larger. All remaining income is credited to Reese. Neither partner is allowed to withdraw funds from the partnership during…