nelly as a partner in business. Just before the partnership's formation, Marie books showed the following Cash 2,600 Accounts receivable 12,000 Merchandise inventory 18,000 Accounts payable 6,200 Mark, Capital 26,400 It was agreed that, for purposes of establishing Marie investment in the firm, the following adjustments shall be reflected: . Allowance for bad debts of 2% should be set up. • Merchandise inventory should be valued at P20,200. • Prepaid expenses of P350 and accrued expenses of P400 should be recognized. Using the same

nelly as a partner in business. Just before the partnership's formation, Marie books showed the following Cash 2,600 Accounts receivable 12,000 Merchandise inventory 18,000 Accounts payable 6,200 Mark, Capital 26,400 It was agreed that, for purposes of establishing Marie investment in the firm, the following adjustments shall be reflected: . Allowance for bad debts of 2% should be set up. • Merchandise inventory should be valued at P20,200. • Prepaid expenses of P350 and accrued expenses of P400 should be recognized. Using the same

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section: Chapter Questions

Problem 2.1AP

See similar textbooks

Similar questions

Marie admits Neri as a partner in business. Just before the partnership's formation, Marie's books showed the following: Cash 2,600 Accounts Receivable 12,000 Merchandise Inventory 18,000 Accounts Payable 6,200 Marie, Capital 26,400 It was agreed that, for purposes of establishing Marie's investment in the firm, the following adjustments shall be reflected: 1. Allowance for bad debts of 2% should be set up 2. Merchandise Inventory should be valued at P20,200 3. Prepaid expenses of P350 and accrued expenses of P400 should be recognized. How much cash should Neri invest to secure a 1/3 interest in the partnership?
need answer asap, please. tysm! Marie admits Neri as a partner in business. Just before the partnership's formation, Marie's books showed the following: Cash 2,600 Accounts Receivable 12,000 Merchandise Inventory 18,000 Accounts Payable 6,200 Marie, Capital 26,400 It was agreed that, for purposes of establishing Marie's investment in the firm, the following adjustments shall be reflected: 1. Allowance for bad debts of 2% should be set up 2. Merchandise Inventory should be valued at P20,200 3. Prepaid expenses of P350 and accrued expenses of P400 should be recognized. How much cash should Neri invest to secure a 1/3 interest in the partnership?
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…
CC admits DD as a partner in business. Accounts in the ledger for CC on November 30, 20x4, just before the admission of DD, show the following balances: Cash.... P 6,800 Accounts Receivable... 14,200 Merchandise Inventory... 20,000 Accounts Payable.. . 8,000 CC, Capital... 33,000 It is agreed that for the purposes of establishing CC's interest the following adjustments shall be made: 1. An allowance for doubtful accounts of 3% of account receivable is to be established. 2. The merchandise inventory is to be valued at P23,000. 3. Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. 1 DD ic to invest sufficient cash to obtain a 1/3 interest in the
Marie admits Neri as a partner in business. Just before the partnership’s formation, Marie's books showed the following:Cash 2,600Account Receivable 12,000Merchandise Inventory 18,000Accounts Payable 6,200Melai, capital 26,400 It was agreed that, for purpose of establishing Marie's investment in the firm, the following adjustment shall be reflected:1. Allowance for bad debts of 2% should be set up. 2. Merchandise inventory should be valued at P20,200. 3. Prepaid expenses of P350 and accrued expenses of P400 should be recognize.How much cash should Neri invest to secure a one-third interest in the partnership?
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 Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: Debit $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 will be paid to creditors and the partners in Installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30,…
Assume the sale occurs on December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. (a) What entry is required by the partnership if the sales price is $66,600?
On Apr. 8, 2020, Tolentino who has her own retail business and Tan, decided to form a partnership wherein they will divide profits in the ratio of 40:60, respectively. The statement of financial position of Tolentino is as follows: Tolentino Marketing Statement of Financial Position April 8, 2020 Assets Cash P 4,000 Accounts Receivable P160,000 Less: Allowance for Uncollectible Accounts 16,000 144,000 Inventory 200,000 Equipment P 50,000 Less: Accumulated Depreciation 10,000 40,000 Total Assets P388,000 Liabilities and Capital Accounts Payable P 36,000 Tolentino, Capital 352,000 Total Liabilities and Capital P388,000
(c) On December 31, the capital balances and income ratios in Bismillah Company are as follows. Capital Balance Tk. 100,000 80,000 50,000 Income Ratio 50% 30% 20% Partner Abu Bakar Umar Usman Instructions (1) Journalize the withdrawal of Usman under each of the following assumptions. (i) Each of the continuing partners agrees to pay Tk. 30,000 in cash from personal funds to purchase Usman's ownership equity. Each receives 50% of Usman's equity. (ii) Umar agrees to purchase Usman's ownership interest for Tk. 35,000 cash. (iii) Usman is paid Tk. 60,000 from partnership assets, which includes a bonus to the retiring partner. (iv) Usman is paid Tk. 42,000 from partnership assets, and bonuses to the remaining partners are recognized.
For each of the independent cases below, prepare a schedule of profit or loss distribution, and journal entry to record the distribution (explanation may be omitted). 5) The partnership agreement of Emily, Gregg and Samuel provided that profits are to be divided as follows: . Emily is to receive a salary allowance of P100,000 for managing the business. Partners are to receive 10% interest on average capital balances. Remaining profits are to be divided in the ratio of 30:30:40 to Emily, Gregg, and Samuel, respectively. Emily had a capital balance of P600,000 at Jan. 1, 2020 and had drawings of P80,000 on Aug. 1, 2020. Gregg's capital balance on Jan. 1, 2020 was P900,000 and invested an additional P300,000 on Sept. 1, 2020. Samuel's beginning capital balance was P1,100,000 and he withdrew P100,000 on July 1 but invested an additional P200,000 on Oct. 1, 2020. The partnership had incurred a net loss of P120,000 during the year.
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
Cue and Peed entered into a partnership on March 1, 200A. They agreed that Cue, the managing partner was to receive a salary allowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the following balances: 3.14 Sales P 300,000 3,000 180,000 48,000 200,000 20,000 100,000 10,000 Sales Returns Purchases Operating Expenses Cue Capital Cue Drawing Peed Capital Peed Drawing Inventories at year-end were as follows: Office supplies, P 810 and merchandise, P 50,000. Prepaid insurance of P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners' Equity for the 10- month period ended December 31, 200A.