Tugade, Masinsin and Biore are all famous athletes who have been operating are sports memorabilia store for many years. The partnership decided to liquidate its operation rather than sell the business because they are each about to retire and want to go their separate ways. they have been sharing Pprofits in the ratio of 40% to tugade, 40% to masinsin, and 20% to biore. Problem #13Preparation of Journal Entries for Partnership LiquidationTugade, Masinsin and Biore are all famous athletes who have been operating a sportsmemorabilia store for many years. The partnership decided to liquidate its operationather than sell the business because they are each about to retire and want to go theirseparate ways. They have been sharing profits in the ratio of 40% to Tugade, 40% toMasinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2018 follows:Trial BalanceJanuary 1, 2018CashP 42,000189,600Accounts ReceivableAllowance for Uncollectible AccountsMerchandise InventoryPrepaid InsuranceP 11,100293,1009,000120,000LandOffice EquipmentAccu. Depreciation-Office EquipmentMachineryAccu. Depreciation-MachineryBuildingAccu. Depreciation-BuildingNotes PayableAccounts PayableMortgage PayableTugade, CapitalMasinsin, CapitalBiore, CapitalTotals31,50010,50081,60032,100375,000112,500120,000220,500240,000135,00060,000200,100P1,141,800P1,141,800In January 2018, the events took place during the process of liquidating the partnership:Accounts receivable of P151,500 are collected, and the allowance for uncollectibleaccounts is written off the books.Merchandise inventory is sold for P160,500.A refund on the prepaid insurance is expected totaling P3,000.Property and equipment were sold lump sum to Sibug Company for P111,000. Themortgage on the building was also transferred to Sibug.The remaining creditors were paid in full.The deficit in Masinsin's capital account was absorbed by Tugade and Biore.The deficit in Tugade's capital account was absorbed by Biore,The remaining partnership cash is distributed to Biore.Jan. 61114202020Required: Prepare the journal entries to record the transactions. Allocate any gain orloss on realization to the partners' capital accounts at the time of the transaction, It isto assumed that any partner with a capital deficiency.is insolvent and will not be able toContribute any personal assets to cover it.24

Problem 13 :The profit-sharing ratio of Tugade, Masinsin, and Biore = 40%, 40%, and 20%…

Preparation of Journal Entries for Partnership Liquidation Tugade, Masinsin and Biore are all famous athletes who have been operatin memorabilia store for many years. The partnership decided to liquidate its ather than sell the business because they are each about to retire and want t separate ways. They have been sharing profits in the ratio of 40% to Tugadi Masinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2018 Trial Balance

Preparation of Journal Entries for Partnership Liquidation Tugade, Masinsin and Biore are all famous athletes who have been operatin memorabilia store for many years. The partnership decided to liquidate its ather than sell the business because they are each about to retire and want t separate ways. They have been sharing profits in the ratio of 40% to Tugadi Masinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2018 Trial Balance

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 6SPB

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contribute any personal assets to cover it. Problem #13 Dreparation of Journal Entries for Partnership Liquidation Tugade, Masinsin and Biore are all famous athletes who have been operating a sports memorabilia store for many years. The partnership decided to liquidate its operation rather than sell the business because they are each about to retire and want to go their separate ways. They have been sharing profits in the ratio of 40% to Tugade, 40% to Masinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2019 follows: Trial Balance January 1, 2019 Cash P 42,000 Accounts Receivable 189,600 Allowance for Uncollectible Accounts P. 11,100 Merchandise Inventory 293,100 9,000 120,000 31,500 Prepaid Insurance Land Office Equipment Accu. Depreciation-Office Equipment Machinery Accu. Depreciation-Machinery Building Accu. Depreciation-Building Notes Payable Accounts Payable 10,500 81,600 32,100 375,000 112,500 120,000 220,500 240,000 Mortgage Payable Tugade, Capital…
Answer and explain Problem #2 Lester and Stephen formed a partnership with capital contributions of P300,000 and P700,000, respectively. During its first year of operations, the partnership suffered a loss of P50,000. Prepare a schedule showing the division of profit between the partners under each of the following independent assumptions: Loss is agreed to be divided equally. There is no profit or loss sharing agreement. A monthly salary of P8,000 will be given to Lester and the balance divided in the ratio of their capital balances. A monthly salary of P8,000 will be given to Lester, 6% interest will be allowed on the capital balances of each partner; and the balance divided equally.
Who will receive the proceeds from the sale? Answer: 3 How much is the personal gain or loss assuming that Jamili pays Abuzo for P200,000? Answer: 4. How much is the capital credit of Jamili upon admission? Answer: 5. Assuming, Jamili pays Abuzo in the amount of P170,000, how much is the personal gain or loss of Abuzo? Answer:
PROBLEM 1 Melvin Tan Jr. and Edgar Esparaguera are partners who have capital balances and profit and loss ratio to be shared as follows: Capital Balances P350,000 P400,000 P/L Ratio 3/5 M. Tan Jr. 2/15 E. Esparaguera Mr. Wilfredo Carreon was admitted in the partnership by buying 2 of the interest of Esparaguera for P300,000. Required: Prepare a journal entry to record the admission of Mr. Carreon in the partnership.
Chapter 3 – Partnership Operation (Division of Profit or Loss) Bruce and Rachel agree to form a partnership on July 1, 2020. Bruce, who has been trading as a sole proprietor, will invest certain business assets at agreed valuations, transfer his business liabilities and contribute sufficient cash to bring his total contribution to a 60% interest over the new business. Details of Bruce’s assets and liabilities are given below. Book value Agreed value Accounts receivable P 32,000 P 30,000 Inventory 240,000 138,000 Equipment 322,000 240,000 Accounts payable 200,000 200,000 Notes payable 14,000 14,000 Rachel agrees to bring in inventory with a value of P146,500 and P93,500 in cash for a 40% interest in the partnership. The partners have agreed on the following: 1. Capital accounts will remain fixed 2. 12% interest profit computed on capital 3. Salaries of P30,000 each for 2020 but will be twice this amount next year and thereafter; 4. 10% interest charge on partners’ drawings made beyond…
Chapter 3 – Partnership Operation (Division of Profit or Loss) Bruce and Rachel agree to form a partnership on July 1, 2020. Bruce, who has been trading as a sole proprietor, will invest certain business assets at agreed valuations, transfer his business liabilities and contribute sufficient cash to bring his total contribution to a 60% interest over the new business. Details of Bruce’s assets and liabilities are given below. Book value Agreed value Accounts receivable P 32,000 P 30,000 Inventory 240,000 138,000 Equipment 322,000 240,000 Accounts payable 200,000 200,000 Notes payable 14,000 14,000 Rachel agrees to bring in inventory with a value of P146,500 and P93,500 in cash for a 40% interest in the partnership. The partners have agreed on the following: 1. Capital accounts will remain fixed 2. 12% interest profit computed on capital 3. Salaries of P30,000 each for 2020 but will be twice this amount next year and thereafter; 4. 10% interest charge on partners’ drawings made beyond…
Instructions Instructions Chart of Accounts General Journal X Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $47,000 and equipment with a cost of $178,000 and accumulated depreciation of $102,000. The partners agree that the equipment is to be valued at $68,400, that $4,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,200 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $20,500 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500. Required: Journalize the entries to record in the partnership accounts (a) Jesse's investment and (b) Tim's investment. Refer to the Chart of Accounts for exact wording of account titles.
Question Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest P200,000 and Brillantes, P300,000. Calamba will devote full time to the business, and Brillantes on part-time only. The following plans for the division of profits are being considered: 1. Interesto of 10% on original investments and the remainder 3:2 2. Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes, and the remainder equally. 3. Plan (e), except that Calamba is also to be allowed a bonus equal to the 20% of the amount by which profit exceeds the salary allowances. Determine the partners’ share in profit or loss for each of the situations above assuming: (1) Profit of P1,500,000 (2) Profit of P660,000
Partnership Dissolution: Problem 1 Lucio, Henry and John are partners sharing profits and losses of 40%, 40% and 20%, respectively. The December 31, 2017 balance sheet of the partnership before any profit allocation was summarized as follows: ASSETS Cash 90,000 60,000 75,000 22,500 Inventories Equipment Trademark Liabilities and Capital Accounts Payable John, Loan Lucio, Capital Henry, Capital John, Capital 7,500 5,000 100,000 90,000 45,000 The income summary account has a credit balance of P25,000 for the year 2017. On January 1, 2018, a partner has decided to retire from the partnership and by mutual agreement among partners; the following have been arrived at: > Inventories amounting to P10,000 is considered obsolete and must be written off. > Equipment should be adjusted to their current value of P50,000 > Trademarks are written-off immediately before the retirement. It was agreed that the partnership will pay the retiring partner for his interest in the partnership inclusive of…
Problem #2 Formation of Partnership Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been recorded in the books of her own business as costing P900,000 with accumulated depreciation of P620,000.The partners agreed on a valuation of P400,000.They also agreed to accept Sabio's accounts receivable of P360,000,realizable to the extent of 85%. Required: Prepare a joirnal entry to record Sabio's Investment in the partnership on June 13.
Problem #2 (adapted) Lester and Stephen formed a partnership with capital contributions of P300,000 and P700,000, respectively. During its first year of operations, the partnership suffered a loss of P50,000. Prepare a schedule showing the division of profit between the partners under each of the following independent assumptions: 1. Loss is agreed to be divided equally. 2. There is no profit or loss sharing agreement. 3. A monthly salary of P8,000 will be given to Lester and the balance divided in the ratio of their capital balances. 4. A monthly salary of P8,000 will be given to Lester, 6% interest will be allowed on the capital balances of each partner; and the balance divided equally.
Chapter 1-Accountring for Partnership Formation & Operation On March 1, of the current year, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March 1, before adjustments. MULTIPLE CHOICE (PROBLEMS) QQ PP 9,000.00 18,500.00 30,000.00 30,000.00 11,500.00 6,375.00 105,375.00 45,750.00 59,625.00 105,375.00 3,750.00 13,500.00 19,500.00 9,000.00 2,750.00 3,000.00 51,500.00 18,000.00 33,500.00 51,500.00 showed the following: P Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total P. Accounts Payable Capital Total P They agreed to have the following items recorded in their books: a. Provide 2% allowance for doubtful accounts. b. PP's furniture and fixtures should be P31,000, while QQ's office equipment is under-depreciated by P250. c. Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d.…