On July 1, 2020, Wency and William agreed to form a partnership from their respective proprietorship businesses and to share profits equally. Wency and William’s balance sheet before the formation were:   Wency William Cash P     6,000 P   15,000 Accounts receivable 36,000 21,000 Merchandise inventory 99,000 126,000 Prepaid rent   12,000 Store equipment 120,000 90,000 Accum. Depreciation (  45,000) (    54,000) Building 375,000   Accum. Depreciation (75,000)   Land    180,000               -   Totals P 696,000 P 210,000 Accounts payable P   22,500 P     9,000 Mortgage payable 180,000 - Capital    493,500    201,000   Totals P 696,000 P 210,000   The fair values of Wency’s and William’s assets were:   Wency William Merchandise inventory P   81,000 P 135,000 Prepaid rent - 0 Store equipment 45,000 19,500 Building 750,000 - Land 300,000 - How much capital will be credited to Wency?

Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form M & B Auto Repair, a partnership. Information from their separate balance sheets is presented below:     Marden Auto Repair   Baker Auto Repair Cash   $10,600   $14,500 Accounts receivable   12,800   10,300 Allowance for doubtful accounts   1,500   3,200 Accounts payable   5,500   5,900 Notes payable   —   3,000 Salaries and wages payable   1,400   1,500 Equipment   12,400   24,400 Accumulated depreciation—equipment   2,800   4,400 It is agreed that the expected realizable value of Marden’s accounts receivable is $11,300 and Baker’s receivables is $7,100. The fair value of Marden’s equipment is $13,800 and the value of Baker’s equipment is $19,500. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of…

Immediately prior to the admission of Abbott, the Smith-Jones Partnership assets had been adjusted to current market prices and the capital balances of Smith and Jones were $54,800 and $59,300, respectively. If the parties agree that the business is worth $152,100, what is the amount of bonus that should be recognized in the accounts at the admission of Abbott? a.$38,000 b.$97,300 c.$92,800 d.$19,000

Andy and lan formed a partnership on April 1, 2017. Andy contributes equipment to the business that originally cost $82,000 and on which accumulated depreciation of $16,000 has ndy contributes been recorded. The current market value of the equipment is $74,000. The value of the equipment recorded in the partnership journal is OA. $74,000 O B. $66,000 O C. $82,000 OD. $58,000