PART L PARTNERSHIP FORMATION AND OPERATIONSOn May 1, 2018, three existing sole proprietors in Cotabato City agreed to form a partnership to engage ina manufacturing business. Their contributions are as follow:JuanaLauraZennyCordillo200.000350,000500,00050,000MendezSevillaCash in BankLandOffice BuildingAccumulated Depreciation-Office BuildingOffice EquipmentAccumulated Depreciation-Office EquipimentFurniture and FixturesAccumulated Depreciation-Furniture & FixturesAccounts PayableMortgage Payable200.000200, 000270,00020,00095,0005,00020,000190,00010,00010,000200,000The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities,and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they areto contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of3:4:3, respectively.Requirement #1:Prepare journal entries in the books of the new partnership to.record the initial investments of the partners.

Journal Entry: It is the entry which is used to record the business transaction of an enterprise in…

PART L PARTNERSHIP FORMATION AND OPERATIONS On May 1, 2018, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in a manufacturing business. Their contributions are as follow. Juana Laura Mendez 200.000 Zemmy Cordillo Sevilla Cash in Bank Land Office Building Accumulated Depreciation-Office Building Office Equipment Accumulated Depreciation-Office Equipment Furniture and Fixtures Accumulated Depreciation-Furniture & Fixtures Accounts Payable Mortgage Payable 200.000 350,000 500,000 50,000 200, 000 270,000 20,000 95,000 5,000 20,000 190,000 10,000 10,000 200,000 The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities, and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they are to contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of 3:4:3, respectively. Requirement #1: Prepare journal entries in the books of the new partnership to.record the initial investments of the pärtners. 11

PART L PARTNERSHIP FORMATION AND OPERATIONS On May 1, 2018, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in a manufacturing business. Their contributions are as follow. Juana Laura Mendez 200.000 Zemmy Cordillo Sevilla Cash in Bank Land Office Building Accumulated Depreciation-Office Building Office Equipment Accumulated Depreciation-Office Equipment Furniture and Fixtures Accumulated Depreciation-Furniture & Fixtures Accounts Payable Mortgage Payable 200.000 350,000 500,000 50,000 200, 000 270,000 20,000 95,000 5,000 20,000 190,000 10,000 10,000 200,000 The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities, and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they are to contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of 3:4:3, respectively. Requirement #1: Prepare journal entries in the books of the new partnership to.record the initial investments of the pärtners. 11

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 12-7 (Algo) Journalizing partnership transactions LO P2 On March 1, Eckert and Kelley formed a partnership. Eckert contributed $95,000 cash, and Kelley contributed land valued at $76,000 and a building valued at $106,000. The partnership also took Kelley's $85,000 long-term note payable associated with the land and building. The partners agreed to share Income as follows: Eckert gets an annual salary allowance of $28,000, both get an annual Interest allowance of 9% of their initial capital Investment, and any remaining Income or loss is shared equally. On October 20, Eckert withdrew $30,000 cash and Kelley withdrew $23,000 cash. First year Income was $82,000. Required: 18. & 1b. Prepare Journal entries to record the partners' Initial capital Investments and their subsequent cash withdrawals 1c. Determine the partners' shares of Income, and then prepare Journal entries to close Income Summary and the partners' withdrawals accounts. 2. Determine the balances of the partners'…
Question #2: Toto profit 56,000 The ABCD Partnership has the following balance sheet at January 1, 2012, prior to the admission of new partner, Eden. Cash and current assets Land Building and equipment Total $ 39,000 234,000 130,000 $ 403,000 Liabilities Adams, capital Barnes, capital Cordas, capital Davis, capital Total $ 52,000 26,000 52,000 117,000 156,000 $ 403,000 Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Eden made his investment, what were the individual capital balances?
Question 2 Brown, Blue, and Black are in partnership sharing profit and losses in the ratio 2:1:2. The balance sheet for the partnership as of April 15, 2019, was as follows: $ Non-current assets Land Buildings Equipment Current assets Inventory Accounts receivable Cash Total assets Capital account Brown Blue Black Non-current liabilities Mortgage on building Current liabilities Accounts payable Total liabilities 360,000 1,260,000 234,000 108,000 45,000 36,000 315,000 108,000 450,000 1,080,000 90,000 $ 1,854,000 Required: Prepare the following ledger accounts for the dissolution of the partnership: a) Realization account b) Bank account c) Partner's capital account 189,000 2,043,000 873,000 1,080,000 90,000 2,043,000 The partners agreed to dissolve the partnership on April 15, 2019 on the following conditions: Sold the inventory for $72,000, collected $48,000 on accounts receivable and wrote off the remaining accounts, sold equipment for $192,000 and building and land for $1,200,000,…
Helping tags: Accounting...WILL UPVOTE, just please help me answer the questions. Thank you!
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Chapter 2: Partnerships Exercise - 1 Computing initial partner investments Careem and Labeeb establish an equal partnership in both cquity and profits to operate a used- furniture business under the name of C&L Furniture. Careem contributes furniture inventory that cost $120,000 and has fair value of $160,000. Labceb contributes $60,000 cash and delivery cquipment that cost $80,000 and has a fair valuc of $60,000. Required: Assume that the initial noncash contributions of the partners are recorded at fair market value. A) Compute the ending balance of cach capital account under the bonus and goodwill approaches. B) Prepare the journal entries of the initial investments under both approaches.
A-7
developed in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…
Financial Statements for Partnership The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y2: Ramirez and Xue Trial Balance December 31, 20Y2 Debit Balances Credit Balances Cash 40,700 Accounts Receivable 38,800 Supplies 1,500 Land 97,000 Building 105,600 Accumulated Depreciation—Building 60,600 Office Equipment 44,600 Accumulated Depreciation—Office Equipment 18,800 Accounts Payable 28,900 Salaries Payable 3,100 Camila Ramirez, Capital 100,000 Camila Ramirez, Drawing 43,700 Ping Xue, Capital 58,200 Ping Xue, Drawing 63,100 Professional Fees 349,200 Salary Expense 141,600 Depreciation Expense—Building 14,100 Heating and Lighting Expense 7,000 Depreciation Expense—Office Equipment 4,400 Property Tax Expense 8,700 Supplies Expense 5,000…
Admitting New Partner With Bonus L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $9,000. The capital balances of each partner are $74,500 and $103,000, respectively, prior to the revaluation. Question Content Area a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry, leave it blank. blank EquipmentL. Bowers, CapitalL. Bowers, DrawingV. Lipscomb, DrawingM. Ortiz, Capital - Select - - Select - CashEquipmentL. Bowers, DrawingV. Lipscomb, CapitalM. Ortiz, Capital - Select - - Select - EquipmentL. Bowers, CapitalV. Lipscomb, CapitalM. Ortiz, CapitalM. Ortiz, Drawing - Select - - Select - Question Content Area b. Provide the journal entry for Ortiz’s admission under the following independent situations: 1. Ortiz purchased a 20%…