A and B (AB partnership) decide to form a partnership. A already has a business in operation and he transfers the following business items into the partnership. $6,000 Cash Inventory Equipment Accumulated Depreciation Liabilities $60,000 $62,000 14,000 $52,000 40,000 Also, the following information is available about A's business assets. The inventory has a current market value of 18,000; the equipment has a current value of 38,000; and there are 2,000 of unrecorded liabilities that the partnership assumes. Mr B contributes 20,000 cash to the partnership. What is the value of total assets brought by A that will be recorded in the partnership? (10,000) 20,000
Q: Chapter 17 Homew December 31, 2022 and 2021 NW sonyd jeuroap auo os Bipunou 'T202 noy su unojoj 2.…
A: Return on stockholders' equity (ROE): ROE measure the profitability of the company. It is calculated…
Q: Current Attempt in Progress Wildhorse Company incurred the following costs during the current year…
A: TOTAL EXPENSES Total expenses include all expenses related to such project. A company's total…
Q: ek 1 Statement Matching Amortization Accounts Payable Cash Receipts Land Net Cash Depreciation…
A: Every organization deals with numerous economic data and transactions in its daily life; like sales,…
Q: Question. How Does Depreciation Affect Cash Flow Statements?
A: INTRODUCTION: Depreciation may be a complicated subject to explain, especially when your company's…
Q: An asset was purchased for $118,000 on January 1, Year 1, and originally estimated to have a useful…
A: Depreciation is considered an expense charge on the value of the Asset. It can be calculated by…
Q: During the period, Sanchez Company sold some excess equipment at a loss. The following information…
A: Under indirect method of cash flow statement, the depreciation, gain and loss on sale of assets…
Q: In 2010, the issued a ruling that makes it more difficult for profit-seeking firms to offer unpaid…
A: Introduction The compensation received by a person or firm that is employed to compute tax…
Q: List the general ledger accounts that are associated with Vendors.
A: 1. Accounts Payable: This account is used to record any outstanding payments owed to Vendors for…
Q: Periodic Payment Payment Interval Term Interest Rate Conversion Period $2500 1 month 6 years 10%…
A: Present value represents the current market price of the future value of the project. It estimates…
Q: 1. Determine the appropriate amounts to complete the following schedule.
A: Formula 1. straight line = (Cost - Residual value) ÷ useful life 2. units of production= [(Cost-…
Q: The SHU Company president, Gregory Peters, has come to you for help. Use the following data to…
A: The static budget variance is the difference between static budget and flexible budget. The flexible…
Q: 19-27 DY Farm Supply is located in a small town in the rural west. Data regarding the store's…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Shep Company combines its operating expenses for budget purposes in a selling and administrative…
A: Sales commission = Total sales ×6% = 20,000×$25×6% = $30,000 Delivery expense = 20,000×$25×2% =…
Q: Required: 1. What is the estimated net present value of purchasing the new machine? (Do not round…
A: INTRODUCTION: A firm must make crucial choices that need significant capital expenditure. Business…
Q: Year Ended December 31, 20X6 e t of goods sold ss Profit rating Expenses fit from Operations Come…
A: The sales is very important for the company and profit earned on the sales is more profit important…
Q: PLEASE ANSWER ASAP. DO NOT USE EXCEL The HO ships merchandise to the branch at 50% above cost. On…
A: Given Information: Beginning Inventory = P15,000 Shipments from HO = P110,000 Ending Inventory =…
Q: describe three manufacturing cost terms. Provide an
A: Manufacturing cost is the cost that is incurred by the company on the manufacturing of the product…
Q: Webster Company produces 36,000 units of product A, 28,000 units of product B, and 11,000 units of…
A: Lets understand the basics. In net realizable value method, by product revenue is first deducted…
Q: What is the first step in adding a social CRM strategy in your marketing mix? Find a social CRM…
A: Social customer relationship management refers to a relationship with connecting customer via social…
Q: Point, Inc. produces men's shirts. The following budgeted and actual amounts are for 2019: Cost…
A: Budget: It implies to a financial estimate that shows the expected numbers related to different…
Q: John is trying to decide whether to contribute to a Roth IRA or a traditional IRA. He plans on…
A: Traditional IRA is the individual retirement plan in which tax on the withdrawl is paid on the…
Q: d amount of depreciation on equipment for the current year is $6,550. Journalize the adjusting entry…
A: The depreciation is the decrease in the value of assets due to the use of equipment and decrease in…
Q: Internal Rate of Return Method The internal rate of return method is used by Testerman Construction…
A: Internal rate of return :— It is the rate of return on investment that makes NPV is equal to Zero.…
Q: Differentiate between a spot rate and forward rate
A: In the financial and commodities markets, the term "spot rate" refers to the current price at which…
Q: Evan Corporation’ charter authorized the following capital stock: Preferred stock: 8 percent,…
A: The contributed capital includes the amount of cash or non cash assets invested by the owners. The…
Q: Hadden Corporation is evaluating a capital investment opportunity. This project would require an…
A: Net present value method :- It is defined as the difference between the present value of cash…
Q: Caculate the following ratios for Apple Inc. Earnings per share Debt to equity ratio…
A: Financial ratios is a financial analysis tool used to analyze the financial statements of a company.…
Q: Internal control at any organization is important because: Multiple Choice OIt reduces the chances…
A: Internal control is a set of procedures incorporated in the operational activities of business to…
Q: Merger Company has 10 employees, each of whom earns $1,650 per month and has been employed since…
A: Journal entry is the procedure for initially documenting commercial transactions in the books of…
Q: How much is the income tax payable of Ana?
A: Calculating Ana's income tax payable derives from various sources of Income.
Q: Which of the following is NOT an indicator used in determining the functional currency? • a.…
A: A practical foreign money is the primary foreign money that a agency conducts its business. As…
Q: Financial Institutions have Off-Balance-Sheet acitivities mainly (Commitment Loans; Letter of…
A: Potential Advantages: 1. Off-balance-sheet activities can help financial institutions reduce their…
Q: please show how to calculate net investment in capital assets from the statement of net position.…
A: Both the government wide and proprietary fund balance sheets report net position which can be…
Q: Vail Limited acquired 40% of McGillis Corporation's 58,000 common shares for $17 per share on…
A: Under Equity Method of accounting Investment for Associates, the investment will be measured at…
Q: A Revenue Procedure issued by the IRS is an example of: Group of answer choices legislative…
A: ANSWER The IRS ( Internal Revenue Service ) is a division of department of treasury. IRS is…
Q: Jenny and Leo plan to purchase a new house and the couple is able to obtain a 25-year 3.6% (per…
A: The concept of time value of money will be applied here. The cost of the house will be the sum of…
Q: Use the following information to answer Questions 6-8 According to CNBC(28.2.2022 )the Russian…
A: Currency depreciation refers to the decrease in the value of the currency compared to the other…
Q: Marin Company makes several products, including canoes. The company reports a loss from its canoe…
A: In evaluating, whether continue to invest or not in a division, the company should calculate the…
Q: Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The…
A: Average rate of return is the return that is earned on an investment in a year. The return earned…
Q: List the system defaults account in Quick Books and explain the purpose of any FOUR default accounts…
A: 1. Accounts Payable: The Accounts Payable account is used to track money owed by the business to its…
Q: Omega Company's accountants have just completed the income statement and balance sheet for the year…
A: Statement of cash flows can be prepared using two methods. Under direct method, only cash receipts…
Q: Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each…
A: PAYBACK PERIOD Payback period is the period in which money invested in capital asset is recovered…
Q: During the year ended December 31, 2021, and in the following months of January and February 2022,…
A: The journal entries for the above transaction are as follows:
Q: Below are departmental income statements for a guitar manufacturer. The company classifies…
A: DEPARTMENT CONTRIBUTED TO OVERHEAD The departmental contribution to overhead is the gross profit…
Q: Required information [The following information applies to the questions displayed below.] On…
A: Lets understand the basics. When bond is issued for more than its face when then bond is known to be…
Q: Presented below are selected transactions of Lombardino Restaurant for the month ending August 31,…
A: The journal entries are prepared to record the transactions on regular basis. The unearned revenue…
Q: At December 31 Common stock, $10 par value Paid-in capital in excess of par Retained earnings The…
A: Common stock is issued to existing or new shareholders to procure funds for the business activities.…
Q: 7. 8. Debt Ratio 9. Equity Ratio Working Capital ons
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: Which of the following best describes the how Investment Centers are evaluated. Investment Centers…
A: A funding middle is an enterprise unit in a corporation that could utilize capital to make…
Q: Picutre one contains the topic, and the questions. Please complete the missing answers on picture…
A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…
Hw.114.
Step by step
Solved in 2 steps
- Items 34 and 35 are based on the following information: On January 2,2010, Jason and Melissa formed a partnership by contributing the following assets: Cash Accounts Receivable Merchandise Inventory Land Building Jason P ? 80,000 100,000 Melissa 34. On January 2, 2010, Melissa, Capital amounts to a. P440,000 b. P600,000 P 380,000 240,000 The Land invested by Melissa is subject to mortgage loan of P160,000, which is to be assumed by the partnership. The accounts receivable invested by Jayson are believed to be only 90% collectible. d. P1,040,000 35. Assuming that Jayson is to contribute enough cash to bring his capital equal to that of Melissa, required cash contribution of Jayson is a. P268,000 b. P420,000 d. P600,000 c. P760,000 c. P440,000Aquino and Asuncion have decided to form a partnership. Aquino invests the assets presented below at their agreed valuation, and also transfers his liabilities to the new firm. Ledger Balances P450,000 Agreed Valuation P 450,000 180,000 10,000 270,000 125,000 Cash Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 180,000 15,000 300,000 180,000 30,000 105,000 90,000 105,000 90,000 Asuncion agrees to invest cash for a one-third interest in the firm. Instructions: 1. Prepare the entries to record the investments of Aquino and Asuncion in the partnership's new set of books. 2. Prepare the entries to adjust and close the balances of accounts in the books of Aquino.A and B decided to form a partnership. The Statement of Financial Position as of May 1,2022 for the business owned by A shows the following assets and liabilities: Current Assets Non-current Assets Total Liabilities Additional information: 240,000 660,000 120,000 Merchandise inventory should be decreased from 140,000 to P120,000. • Machinery and Equipment was over-depreciated by P12,000. B is to be admitted as a partner upon his investment of P130,000 cash. Compute the total assets of the partnership upon formation.
- C. Shelton contributed land, inventory and $58,000 cash to a partnership. The land had a book value of $20,000 and a market value of $48,000. The inventory had a book value of $50,000 and a market value of $45,000. In the journal entry to record Shelton's contribution to the partnership, what account should be credited and for what amount? JOURNAL Date Description P.Ref DEBIT CREDIT Cash Inventory Land (?) (?) Group of answer choices Cash credited for $128,000 C. Shelton, Capital credited for $151,000 C. Shelton, Capital credited for $128,000 none of the above answers are correct2. Psalm and Selah decided to form a partnership on June 30, 2030, Assets contributed by the partners are: Psalm Selah Book Value Fair Value Book Value Fair value Cash P375,000 P375,000 P875,000 P875,000 Merchandise inventory 95,000 125,000 Furniture and fixtures 350,000 312,500 872,500 937,500 Transportation equipment 3,262,500 2,812,500 The transportation equipment is subject to a mortgage loan of P1,125,000, which is to be assumed by the partnership. The partnership agreement provides that Psalm and Selah share profits and losses of 30% and 70% respectively. Assuming that the partners agreed to bring their respective capital in proportion to their profit and loss ratio, using Selah capital as base. How much additional cash is to be invested (withdrawn) by Psalm? A. P(687,500)B. P(987,500)C. P 875,000 D. P 687,500The Spirit Partnership owns the following assets on October 1 of the current year: Assets Partnership’s Basis FMV Cash $30,000 $30,000 Receivables 0 16,000 Inventory 50,000 52,000 Supplies 6,000 6,500 Equipment* 9,000 10,500 Land 40,000 65,000 Total $135,000 $180,000 *Partnership has claimed $4,000 depreciation on the equipment a. Which items are considered as unrealized receivables of the partnership? b. Is the partnership’s inventory substantially appreciated? c. Assume the Spirit Partnership has no liabilities and that partner Betsy’s basis for her partnership interest is $33,750. On March 1 of the current year, Betsy receives a $20,000 current distribution in cash, which reduces her partnership interest from one-third to one-fourth. What are the tax results of the distribution (i.e., the amount and character of any gain, loss, or income recognized and Betsy’s basis in her partnership interest)? No handwritten solution please
- Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 $ 65,000 Cash Accounts receivable $125,000 Less: Allowance for doubtful accounts 7,200 117,800 Land 215,000 $ 78,000 Equipment Less: Accumulated depreciation-equipment 41,000 37,000 Total assets $434,800 $ 24,800 Accounts payable Notes payable Hannah Freeman, capital 76,000 334,000 Total liabilities and owner's equity $434,800 Freeman obtained appraised values for the land and equipment as follows: Land $320,000 Equipment 34,800 An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $9,500. Journalize the partnership's entry for Freeman's investment.The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torven, Capital Total Debit $ 7,200 38,000 27,000 98,400 Profit and loss percentages Preliquidation capital balances $170,600 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $112,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $112,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Decrease LAPs to next highest Credit Required: Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell…Rachel and Patrick Co. sells inventory through their partnership. They expand their business and decide to admit Sonny to the partnership. Before the admission of Sonny, the statement of financial position of Rachel and Patrick is as follows: Cash P80,000 120,000 280,000 720,000 120,000 P1,320,000 Accounts payable Loan from Patrick Rachel, Capital (60%) Patrick, Capital (40%) P140,000 100,000 600,000 480,000 Accounts receivable Merchandise inventory Fixed assets, net Loan to Rachel Total assets Total liabilities and equity P1,320,000 Required: Record the admission of Sonny (and asset revaluation, if any) for each of the following independent situation: 1. Sonny invests P279,000 for half of Patrick's capital. The money goes to Patrick. 2. Sonny directly purchases a one-fourth (1/4) interest from Rachel and Patrick by paying Rachel, P192,000, and Patrick, P216,000. The equipment account is undervalued before Sonny's admission.
- Problem #1. Partner'Original Investment Froilan Labausa contributed land, inventory, and P280,000 cash to partnership.The land has a book value of P650,000 and a market value P1,350,000.The inventory has a book value of P600,000 and a market value of P510,000.The partnership also assumed a P350,000 a note payable owed by Labausa that was used to purchase the land.Rosalie Balhag to put up cash equivalent to Labausa's net investment. Required: Prepare a journal entry to report Labausa's and Balhag's investment in the partnership.C and F formed a partnership. The following are their contributions: C F Cash P520,967 Accounts Receivable 83,790 Inventory 60,312 Land P1,908,300 Building 2,598,000 Total 665,069 4,506,300 Note Payable 67,984 C, Capital 597,085 F, Capital 4,506,300 Total 665,069 4,506,300 Additional Information: Included in accounts receivable is an account amounting to P22,454, which is deemed The inventory has an estimated selling price of P56,354 and estimated costs to sell of P22,567. A mortgage of P 250,000 on the land is shouldered by The building is over-depreciated by P323,555 The building also had a mortgage amounting to P231,356, which was already fully paid by The note payable is net of the discount on note payable amounting to P 15,234. Proper valuation requires the recognition of this C and F shall share in profits using the ratio 40:60 and in losses using…Sofia contributed the following business assets to S&S Partnership on March 3, 2022: FMV $ 45,000 $-0- $ 100,000 What is the basis in the equipment and the accounts receivable to S&S? Equipment Accounts receivable Multiple Choice Basis $ 75,000 Equipment $45,000; Accounts Receivable $100,000 Equipment $0; Accounts Receivable $0 Equipment $45,000; Accounts Receivable $0 Equipment $75,000; Accounts Receivable $0 Date purchased by Sofia 07/01/21 Various