Journal entry is the first step of accounting to record day-to-day transactions that a business performs. It helps in further preparing financial statements at the end of the period to assess the financial position of the business. To Prepare: The journal entry for the admission of Partner K.

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Chapter 12, Problem 8QS

To determine

Introduction: Journal entry is the first step of accounting to record day-to-day transactions that a business performs. It helps in further preparing financial statements at the end of the period to assess the financial position of the business.

To Prepare: The journal entry for the admission of Partner K.

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Exercise 2: Admission by Contributing Capital to Partnership Directly Dennis is being admitted into the partnership of Danilo, Romeo and Sanros. As of the date of admission, the capital balances and share in net income of the three partners are as follows: Capital Balance P30,000 P/L Ratio Danilo 30% Romeo 60,000 50 Sanros 10,000 20 Make the entries incidental to the admission of Dennis who invests P30,000 for: a. 1/5 interest in the partnership with capital credit equal to his investment. b. 1/3 interest in the partnership with total capitalization of P150,000. c. 1/5 interest in the partnership with total capitalization of P130,000. d. 30% interest in the partnership with total capitalization of P130,000. e. 25% interest in the partnership with total agreed capital of P150,000. f. 30% interest in the partnership. The partnership has asset revaluation of P10,000 g. 15% interest in the total partners' equity of P150,000.

Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $93, 000 and $ 130,000, respectively. Lewan Gorman is to be admitted to the partnership, contributing $62,000 cash to the partnership, for which he is to receive an ownership equity of $81,000. All partners share equally in income. Question Content Area a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $19,000. If an amount box does not require an entry, leave it blank. blank Cash 62,000 Lewan Gorman, Drawing 81,000 Harry Barge, Capital 19,000 Lewan Gorman, Capital 81,000 Question Content Area b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson Sfill in the blank a4bbb009305cfea_1 155,000 Harry Barge Sfill in the blank a4bbb009305 cfea_2 11,000 Lewan Gorman Sfill in the blank a4bbb009305cfea_3…

tnership s. Is th Chapter 2-Nature and Formation of a Partnership EXERCISES Exercise 2-1 (Cash and Non-cash Contributions) Give the entry to record the investment of Alonzo into the partnership under each of the following independent assumptions: a. ers int b. conter c. How d. does Cash of P400,000. 63 Accounts receivable of P500,000 with an allowance for uncollectible accounts of P50,000. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of 80% of average cost. Equipment that cost P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10-year useful life. Exercise 2-2 (Cash and Net Asset Contributions)