Eaton and Hunt have partner capital balances of $202,000 and $178,000, respectively. Eaton receives 60% of profits and losses, and Hunt receives 40%. Assume Peterson contributes $95,000 to acquire a 25% interest in the new partnership of Eaton, Hunt, and Peterson. Requirements 1. Calculate Peterson's capital in the new partnership. 2. Journalize the partnership's receipt of cash from Peterson. Requirement 1. Calculate Peterson's capital in the new partnership. Partnership capital before admission of new partner Contribution of new partner Partnership capital after admission of new partner Capital of new partner Bonus to

Eaton and Hunt have partner capital balances of $202,000 and $178,000, respectively. Eaton receives 60% of profits and losses, and Hunt receives 40%. Assume Peterson contributes $95,000 to acquire a 25% interest in the new partnership of Eaton, Hunt, and Peterson. Requirements 1. Calculate Peterson's capital in the new partnership. 2. Journalize the partnership's receipt of cash from Peterson. Requirement 1. Calculate Peterson's capital in the new partnership. Partnership capital before admission of new partner Contribution of new partner Partnership capital after admission of new partner Capital of new partner Bonus to

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 57P

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1. 2. EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 3. Page 4. 9 Cash contribution amounting to P45,000 each. Kim contributed P35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed P15,000 cash and a delivery vehicle with a fair market value of P195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. Kim contributed P10,000 cash and furniture and fixtures with carrying value of P32,000. Krislam contributed P5,000 cash and a building with a fair market value of P295,000 and an unpaid mortgage of P27,500. Kim and Krislam agreed that building is undervalued by P9,000. Kim contributed P25,000 cash, a store equipment with fair market value of P47,000, and delivery vehicle with a fair market value of P175,000. Krislam, an industrial partner, was to contribute…
3. The following are shown in the capital accounts of partners AA, BB, and CC in a year: AA BB CC Capital, January 1 Investment, June 1 Investment, October 1 P200,000 100,000 P300,000 P250,000 50,000 If the partnership has a net income of P500,000 for the year, distribute the net income on the basis of ending capital balances. Solution:
2. The capital balances of partners Po and Gi are as follows:Po GiJanuary 1, Beginning P100,000 P200,000June 30, investment 50,000 -September 30, withdrawal - (100,000)Balance P150,000 P100,000Their agreement is to share profit and loss based on average capital balance. How muchis the share of Gi in the partnership’s income of P450,000?
2.6 Pancho invites Villa in his business. The following accounts appear in the ledger of Pancho prior to the admission of Villa: P 15,000 30,000 3,000 25,000 18,000 55,000 Cash Accounts Receivable Allowance for Impairment Loss Inventory Equipment (net) Accounts Payable Villa is to make investment of P 25,000 in cash and is equivalent to 40% of the agreed total capital of the new partnership. It is also agreed that the following adjustments slhould be made: 1. The allowance for impairment loss account should be increased by P 80o0. 2. Unused office supplies of P 500 are to be recognized. 3. Goodwill of Pancho is to be recognized. REQUIRED: a. How much is the goodwill of Pancho? b. Prepare journal entries assuming new set of books will be used.
Peary has $91,500 capital and Hammet has $43,500 capital in the Peary & Hammet partnership. Peary and Hammet share profits and losses equally. Ryanne Potvin contributes cash of $45,000 to acquire a 1/4 interest in the new partnership. Requirements 1. Calculate Potvin's capital in the new partnership. 2. Journalize the partnership's receipt of the $45,000 from Potvin. ..... Requirement 1. Calculate Potvin's capital in the new partnership. (Leave unused cells blank. Do not enter a "0" for a zero balance.) Partnership capital before admission of new partner Contribution of new partner Partnership capital after admission of new partner Capital of new partner Bonus to
2.) XY Partnership had the following balances as of the year ended December 31, 2019. Description Partner X Partner Y 10,000 8,000 Beginning Capital Withdrawals 2,000 1,500 Additional Investments 1,200 3,000 Division of Profit/Loss 60% 40% Net income of the Partnership amounted to Php 4,000. Required: Provide a statement of Changes in Partner's Equity with complete parts 3.) xyCorporation had the following balances as of the year ended December 31, 2019. Beginning Shareholder's Equity -- Php 20,000 Share Issuances (Additional Investment) -- Php 25,000 Dividends declared (Distribution of Income) - Php 10,000 Net Income Year 2019 - Php 15,000 Required: Provide a Statement of Changes in Shareholder's Equity with complete parts
Problem 1. Alucard and Chou organized their partnership on 01/01/19. The following entries were made into their capital accounts during 2019. Required: If partnership profits for the year equaled P66,000, indicate the allocations between the partners under the following independent profit-sharing allocation conditions: Interest of 10% is allocated on weighted average capital balance and the remainder is divided equally. A salary of P9,000 will be allocated to Chou; 10% interest on ending capital is allocated to the partners; remainder is divided 60/40 to Alucard and Chou, respectively. Salaries are allocated to Alucard and Chou in the amount of P10,000 and P15,000, respectively and the remainder is allocated in the proportion to weighted average capital balances. A bonus of 10% of partnership profits after bonus is credited to Alucard, a salary of P35,000 is allocated to Chou, a P20,000 salary is allocated to Alucard, 10% interest on weighted capital is allocated, and remainder is…
Jason River, Sara Down, and Cam Preti each have a $240,000 capital balance. They share profits and losses as follows: 2.2.6 to River, Down, and Preti, respectively. Suppose Preti is withdrawing from the business Requirements 1. Journalize the withdrawal of Pres if the partnership agrees to pay Pres $240,000 cash 2. Journalize the withdrawal of Preti if the partnership agrees to pay Preti $210,000 cash. Requirement 1. Journalize the withdrawal of Preti if the partnership agrees to pay Pret $240,000 cash (Record debits first, then credits Select the explanation on the last line of the journal entry table) Date Accounts and Explanation Debit Credit
K Palmer has $98,000 capital and Haymer has $52,000 capital in the Palmer & Haymer partnership. Palmer and Haymer share profits and losses equally. Joan Philip contributes cash of $50,000 to acquire a 1/4 interest in the new partnership. Requirements 1. Calculate Philip's capital in the new partnership. 2. Journalize the partnership's receipt of the $50,000 from Philip. Requirement 1. Calculate Philip's capital in the new partnership. (Leave unused cells blank. Do not enter a "0" for a zero balance.) Partnership capital before admission of new partner Contribution of new partner Partnership capital after admission of new partner Capital of new partner Bonus to Clear all Check anewar 5:23 PM
= Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Elayne Summers and Murv Newcomb have balances of $99,000 and $149,000, respectively. Rose Clayton is to be admitted to the partnership, contributing $66,000 cash to the partnership, for which she is to-receive an ownership equity of $86,000. All partners share equally in income. a. Journalize the entry to record the admission of Rose Clayton, who is to receive a bonus of $20,000. If an amount box does not require an entry, leave it blank. b. What are the capital balances of each partner after the admission of the new partner? Partner ▼ Elayne Summers Murv Newcomb Rose Clayton $ Balance c. Why are tangible assets adjusted to current market prices prior to admitting a new partner? Tangible assets should be adjusted to current market prices so that the new partner being admitted. For example, if the market price of land doubled prior to admitting…
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The following are the partnership agreement between partners Baby Love & Honey Sweet for their partnership’s profit distribution:A. Each partners shall be entitled for an annual salary of P50,000 each.B. 15% Bonus of partnership profits after salaries to Honey Sweet being a managing partner.C. 20% interest is given to both partners based on average capital ratio.D. Residual profit and loss shall be distributed on the ratio 2:2The ledgers of their capital balances are shown below: Baby Love Debit: July 1. P20,000 Credit: Jan 1. P80,000 Oct 1. P40,000 Honey Sweet Debit: Oct 1. P10,000 Credit: Jan 1. P120,000 May 1. 30,000 The partnership profit for the year is P150,000 before distribution to partners Required: 1. Prepare a Schedule for Profit Distribution.2. Journal entry to record the distribution of profit to partners.