Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $48,000 and equipment with a cost of $72,000 and accumulated depreciation of $46,500. The partners agree that the equipment is to be priced at $37,500, that $4,400 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,800 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $27,500 and merchandise inventory of $58,000. The partners agree that the merchandise inventory is to be priced at $47,000. Journalize the entries to record in the partnership accounts (a) Barton's investment and (b) Fallows' investment. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivable with a face amount of $46,000 and equipment with a cost of $186,000 and accumulated depreciation of $101,000. The partners agree that the equipment is to be valued at $83,000, that $3,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,200 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Fallows contributes cash of $28,300 and merchandise inventory of $56,000. The partners agree that the merchandise inventory is to be valued at $60,500. Journalize the entries in the partnership accounts for (a) Barton's investment and (b) Fallows's investment. If an amount box does not require an entry, leave it blank. a.

Kimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payne contributes the following assets to the partnership: cash, $25,230; accounts receivable with a face amount of $150,960 and an allowance for doubtful accounts of $3,970; merchandise inventory with a cost of $89,120; and equipment with a cost of $138,820 and accumulated depreciation of $41,460. The partners agree that $5,620 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $5,240 is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $103,020, and that the equipment is to be valued at $91,740. On December 1, journalize the partnership’s entry to record Payne’s investment. Refer to the Chart of Accounts for exact wording of account titles.

The partnership of Matteson, Richton, and O'Toole has existed for a number of years. At the present time, the partners have the following capital balances and profit and loss sharing percentages: Partner Matteson Richton O'Toole Capital Balance $ 143,550 O'Toole elects to withdraw from the partnership, leaving Matteson and Richton to operate the business. Following the original partnership agreement, when a partner withdraws, the partnership and all of its individual assets are to be reassessed to current fair values by an independent appraiser. The withdrawing partner will receive cash or other assets equal to that partner's current capital balance after including an appropriate share of any adjustment indicated by the appraisal. Gains and losses indicated by the appraisal are allocated using the regular profit and loss percentages. 186,450 170,000 An independent appraiser is hired and estimates that the partnership as a whole is worth $530,000. Regarding the individual assets, the…

Ed and John decide to combine their two businesses to form a partnership. Ed contributes merchandise inventory with a book value of $70,000 and equipment with a book value of $150,000 and accumulated depreciation of $60,000. John contributes cash of $10,000 and accounts receivable of $20,000. The two agree that the inventory and the equipment should be valued at $65,000 and $95,000. They also agree that $2,000 of the accounts receivable is completely worthless and that an allowance for doubtful accounts for $5,000 should be included.

. Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $110,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $70,000 and was appraised at $180,000. The land was also encumbered with a $70,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. Blue Bell made a $7,000 principal payment on the mortgage at the end of the first year. For the first year of operations, the partnership records disclosed the following information: Sales revenue $ 470,000 Cost of goods sold $ 410,000 Operating expenses $ 70,000 Long-term capital gains $ 2,400 §1231 gains $ 900 Charitable contributions $ 300 Municipal bond interest $ 300 Salary paid as a guaranteed payment to Deanne (not included in expenses) $ 3,000 What is the Qualified nonrecourse debt for Deanne and why.

As part of the initial investment, Jackson contributes accounts receivable that had a balance of $40,480 in the accounts of a sole proprietorship. Of this amount, $1,308 is deemed completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $655. The amount debited to Accounts Receivable for the new partnership is

es Watts and Lyon are forming a partnership. Watts invests $27,000 and Lyon invests $63,000. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon will work three-fourths. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments; (b) in proportion to the time devoted to the business; (c) a salary allowance of $18,000 per year to Lyon and the remaining balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $18,000 per year to Lyon, 8% interest on their initial capital investments, and the remaining balance shared equally. The partners expect the business to perform as follows: Year 1, $18,000 net loss; Year 2, $45,000 net income; and Year 3, $75,000 net income. Required: Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of…

Ed and John decide to combine their two businesses to form a partnership. Ed contributes merchandise inventory with a book value of $70,000 and equipment with a book value of $150,000 and accumulated depreciation of $60,000. John contributes cash of $10,000 and accounts receivable of $20,000. The two agree that the inventory and the equipment should be valued at $65,000 and $95,000. They also agree that $2,000 of the accounts receivable is completely worthless and that an allowance for doubtful accounts for $5,000 should be included. a. Journalize Ed’s contribution. DATE   Debit Credit X/X                                         b. Journalize John’s contribution. DATE   Debit Credit X/X

Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $28,000 and $18,000, respectively. After all noncash assets are sold and all Iliabilities are paid, there is a cash balance of $35,000.