E12-15 Nan Fuentes has been operating an apartment-locator service as a pre prietorship. She and Misti Fulmer have decided to form a partnership Fuentes's investment consists of cash, $8,000; accounts receivable $10,000; furniture, $1,000; a building, $55,000; and a note payabl. $10,000. To determine Funtes's equity in the partnership, she and Fulmer hime an independent appraiser. The appraiser values all the assets and liabil ties at their book value except the building, which has a current marka value of $90,000. Also there are accounts payable of $3,000. Requirement Make the entry on the partnership books to record Fuentes's investment. (pp. 600–601)
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- Nancy Freeley has been operating an apartment-locator service as a sole proprietorship. She and Melissa Marcellus have decided to form a partnership. Freeley's contribution consists of Cash, $6,000; Accounts Receivable, $12,000; Furniture, $13,000; Building (net), $53,000; and Notes Payable, $17,000. To determine Freeley's equity in the partnership, she and Marcellus hire an independent appraiser. The appraiser values all the assets and liabilities at their book value, except the building, which has a current market value of $100,000. Also, there are additional Accounts Payable of $3,000 that Freeley will contribute. Marcellus will contribute cash equal to Freeley's equity in the partnership. Requirements 1. Journalize the entry on the partnership books to record Freeley's contribution. 2. Journalize the entry on the partnership books to record Marcellus's contribution.Nancy Finch has been operating an apartment-locator service as a sole proprietorship. She and Melissa Michaels have decided to form a partnership. Finch's contribution consists of Cash, $3,000; Accounts Receivable $9,000; Fumiture, $13,000; Building (net), $58,000; and Notes Payable, $21,000. To determine Finch's equity in the partnership, she and Michaels hire an independent appraiser. The appraiser values all the assets and liabilities at their book value, except the building, which has a current market value of $96,000. Also, there are additional Accounts Payable of $10,000 that Finch will contribute. Michaels will contribute cash equal to Finch's equity in the partnership. Read the requirements ge Requirement 1. Journalize the entry on the partnership books to record Finch's contribution. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) ur - X Date Accounts and Explanation Debit Credit Requirements 1. Journalize the entry on…Ana, Bea and Carol decided to form a partnership contributing the following items. Ana is to invest her existing business in the partnership consisting of the following accounts; cash of P20,000; accounts receivable of P50,000; inventory P30,000; fixtures of P40,000; payables of P12,000. Bea on the other hand is to invest cash of P15,000 and a delivery truck costing P30,000 but is mortgaged with the bank for P20,000. The partners agree that the receivables will re have a 90% realizable value. The inventory would be valued at P20,000. P5,000 of the payables would be paid prior to the formation of the partnership. The delivery truck would have a 20% increase in its market value. The partnership will shoulder only 80% of the mortgage and Carol is to invest cash to be able to have a 40% interest in the partnership.How much cash should Carol invest in the newly formed partnership?A. 61,200 B. 138,000 C. 60,800 D. 102,000
- Barbara 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?Stokely and Leder are forming a partnership. Stokely invests in a building that has a market value of $250,000; and the partnership assumes responsibility for a $50,000 note secured by a mortgage on that building. Leder invests $100,000 cash. For the partnership, the amounts recorded for the building and for Stokely’s capital account are: a. Building, $250,000; Stokely, Capital, $250,000. b. Building, $200,000; Stokely, Capital, $200,000. c. Building, $200,000; Stokely, Capital, $100,000. d. Building, $200,000; Stokely, Capital, $250,000. e. Building, $250,000; Stokely, Capital, $200,000.Draper and Becker decide to organize a partnership. Draper invests $35,500 cash, and Becker contributes $5,300 and equipment having a book value of $7,000 and a fair value of $15,000, Prepare the entry to record each partner's investment. (Credit account titles are automatically Indented when the amount Is entered. Do not Indent manually List all debit entries before credlt entrles.) Account Titles and Explanation Debit Credit (To record Draper's investment) (To record Becker's investment)
- After the tangible assets have been adjusted to the current market prices, the capital accounts of Cecil Jacobs and Maria Esteban have balances of $61,000 and $59,000 respectively. Lee White is to be admitted to the partnership, contributing $45,000 cash to the partnership, for which she is to receive an ownership equity of $55,000. All partners share equally in income. Journalize the admission of white, who receive a bonus of $10,000. What are the capital balances of each partner after the admission pf the new partnersGena and Bena decide to organize a partnership. Gena invests $35,000 cash, and accounts receivable of 20,000. Bena contributes $5,000 and inventory having a cost of $27,000. The partners agree that the fair value of the accounts receivable is 17,000 and the fair value of the inventory is $25,000. Instructions: Prepare the entry to record each partner's investment.K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $50.600 of personal cash to the partnership. Rosen owns land worth $15,300 and a small building worth $77,500, which she transfers to the partnership. Toso transfers to the partnership cash of $11,800, accounts receivable of $32.500, and equipment worth $18,800. The partnership expects to collect $29,250 of the accounts receivable.. (a) Prepare the journal entries to record each of the partners' investments. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation (To record investment of Decker.) (To record investment of Rosen.) Debit Credit
- After the tangible assets have been adjusted to current market prices, the capital accounts of Brad Paulson and Drew Webster have balances of $45,000 and $60,000, respectively. Austin Neel is to be admitted to the partnership, contributing $30,000 cash to the partnership, for which he is to receive an ownership equity of $35,000. All partners share equally in income.a. Journalize the entry to record the admission of Neel, who is to receive a bonus of $5,000.b. What are the capital balances of each partner after the admission of the new partner?c. Why are tangible assets adjusted to current market prices prior to admitting a new partner?After the tangible assets have been adjusted to current market prices, the capital accounts of Harper and Kahlil have balances of $60,000 and $90,000, respectively. Fay is to be admitted to the partnership, contributing $45,000 cash, for which she is to receive an ownership equity of $60,000. All partners share equally in income. a. Journalize the entry for the admission of Fay, who is to receive a bonus of $15,000. b. What are the capital balances of each partner after the admission of the new partner?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: