FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Chapter 12, Problem 4QS
To determine
Introduction:
To Prepare: The Journal entry for J’s Investment.
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EXERCISE 6. Journal Entries - Capital share different from capital contribution.
On June 1, 2022, Al and Ace formed a partnership. Al contributed cash of P600,000, inventories of P100,000, and furniture and fixtures of P120,000.
On the other hand, Ace contributed cash of P520,000, building of P330,000, and land of P200,000. The building was mortgaged for a loan amounting
to P500,000 of which 70% had already been paid. The remaining balance would be assumed by the partnership. The partners agreed to share profits
and losses equally.
Prepare and upload journal entries related to partnership formation, assuming:
1. Each partner would be credited for the full amount of net assets invested
2. Each partner initially should have equal interest in partnership capital. To ensure this, it was agreed that partner with a lower capital balance had to
invest additional cash.
Instruction: Prepare the answers in written form using a clean paper (e.g. Yellow pad, bond paper,
notebook etc.) and submit a snapshot in CANVAS.
Assume A, B, C and D are partners sharing profits 40%, 20%, 20%, 20%, respectively. On January 1, 2020,
they agree to liquidate. A balance sheet prepared on this date is shown as follows:
Assets
Liabilities and Capital
Non- Cash assets
P 181,800
Liabilities
P 84,000
A, Loan
6,000
D, Loan
3,000
A, Capital
26,400
В, Сapital
C, Capital
D, Capital
25,800
20,400
16,200
Total
P 181,800
P 181,800
Results of liquidation are summarized below:
Month
Proceeds
Book Value
Liquidation exp.
Cash withheld
January
P72,000
P90,000
P1,200
P4,800
February
21,600
30,000
1,320
1,800
March
19,200
24,000
1,440
1,200
April
6,000
19,800
4,800
600
May
2,400
18,000
960
Required: Prepare the statement of liquidation and related schedule of safe payment for the month of
January to May 2020 and determine payment to partners for every month.
Partnership A, B and C is a law firm. You have been engaged as accountant to prepare financial statements for the year ended Dec. 31, 2019
Partnerships profits are alllocated based fist on salaries,then on interest on opening capital balances then on fixed ratio.
Salary allocation amount are
A $100000
B $100000
C $160000
Opening capital balances
A $70000
B $60000
C $70000
Interest rate is: 5%
Fixed ratio is
A 3
B 2
C 5
required
Prepare year end adjusting entries
Allocate partnership profit or loss to each partner
Prepare adjusting entry and complete trial balnce
Prepare income statement and statement of partners capital for the year ended Dec. 31, 2019 and a balance sheet for Dec.31
Chapter 12 Solutions
FUND.ACCT.PRIN.
Ch. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - QS 12-9
Liquidation of partnership
P5
The Field,...Ch. 12 - Prob. 10QS
Ch. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Kay, Kat, and Kim are partners. In a liquidation,...Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 1BTNCh. 12 -
BTN 12-4 Assume that you are studying for an...Ch. 12 - BTN 12-3 Access the 2017 10-K of Advanced...Ch. 12 - Prob. 4BTN
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