For several years, Peejay and Joshua have been operating their own retail pharmacies as sole proprietorships. They decided that several advantages could be gained if they combined their businesses into one operation. They leased a new facility and began operations as a partnership on January 2, 2020. Peejay was able to find a buyer for his prior business and sold it as a going concern. Joshua did not have an opportunity to sell his business so he transferred as many asserts as possible to the new partnership. The following assets were contributed by Peejay and Joshua to start their new business: Peejay Cash Accounts Receivable Inventory Furnishings Ace Dep-Furnishing Office Equipment Acc Dep-Office Equipment Computer System Acc Dep-Computer System Total Accounts Payable (assumed by Partnership) . How much is the opening capital of Joshua? A. P396,500 A. B. C. D. B. P375,000 375,000 37,500 Bonus to Joshua 27,825 Bonus from Peejay 375,000 Joshua Book Value 82,000 48,000 225,000 24,000 (12,000) 38,500 (20,000) 23,200 (17,200) 396,500 25,000 Fair Value 82,000 40,000 220,000 8,000 C. P350,000 D. P366,500 5. If the partners decided that the agreed capitalization ratio is 4.5:5.5, who will give the bonus and how much? 48,750 Bonus from Peejay 48,750 Bonus to Peejay 20,000 5,000 375,000 25,000

Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $78,000 and $46,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings.Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $32,000.a. Determine the recipient and amount of the partner bonus.b. Provide the journal entry to admit Solano into the partnership.c. Why would a bonus be paid in this situation?

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 $74,000 and equipment valued at $44,000 as well as $32,000 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 10 percent of partnership income each year (without regard for the preceding interest figure) or $6,000, whichever is larger. All remaining income is credited to Reese.Neither partner is allowed to withdraw funds from the partnership during 2019.…

Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $50,000 and equipment with a cost of $185,000 and accumulated depreciation of $101,000. The partners agree that the equipment is to be valued at $67,800, that $4,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $1,800 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $21,500 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500. Journalize the entries in the partnership accounts for (a) Jesse's investment and (b) Tim's investment. If an amount box does not require an entry, leave it blank. a. b.

Manji

Marcus and Madison are equal members of an LLC. On January 1 of the current year, to acquire a one-third interest in the entity, Nora contributed a parcel of land she had held for investment. (At this time, the entity will be renamed MMN LLC.) Nora had purchased the land for $120,000; its fair market value was $90,000 at the contribution date. A few years later, the LLC sells Nora’s land for $84,000. At the beginning of that year, Nora’s capital account (determined using the tax basis) was $200,000 and Marcus and Madison’s capital accounts (also calculated on the tax basis) were $170,000. a. What is the LLC’s recognized gain or loss? How is it allocated among the LLC members? b. Use Microsoft Excel to prepare schedules that compute the partners’ tax basis capital accounts immediately after the sale. Use variables to input the amount allocated to each LLC member and the total not specially allocated.

Phillips and Harris are partners in a used car business. Under their oral partnership, each has an equal voice in the conduct and management of the business. Because of their irregular business hours, the two further agreed that they could use any partnership vehicle as desired. This use includes transportation to and from work, even though the vehicles are for sale at all times. Harris conducted partnership business both at the used car lot and from his home. He was on call by Phillips or customers at his home, and he went back to the lot two or three times after going home. While driving a partnership vehicle home from the used car lot, Harris negligently hit a car driven by Cook, who brought this action against Harris and Phillips individually and as copartners for his injuries. Who is liable?