Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem S12.7SE
Accounting for the admission of a new partner
Learning Objective 4
Penn has $90,500 capital and Hammet has $68,500 capital in the Penn & Hammet
Requirements
1. Calculate Pilard's capital in the new partnership.
2. Journalize the partnership’s receipt of the $53,000 from Pilard.
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problem.
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5
Ramer and Knox began a partnership by investing $68,000 and $102,000, respectively. During its first year, the
partnership earned $205,000. Prepare calculations showing how the $205,000 income is allocated under each separate
plan for sharing income and loss.
O
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Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem.
2. The partners agreed to share income and loss in proportion to their initial investments. Net Income is $205,000. (Do not round
Intermediate calculations.)
A
$68.000/5170 000
Fraction to Allocate Ramers Share Fraction to Allocate Knox's Share of Total Income
Allocated
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I
FINANCIAL ACCOUNTING AND REPORTING
LEARNING MODULES
11. Under the bonus method, the asset
contribution of the partner receiving a bonus
is debited at
a. fair value
b. an increased amount with a corresponding
decrease to the other partner's asset
12. Qand R formed a partnership. Q contributed
cash of P500,000 while R contributed land
with a carrying amount of P400,000 and a
fair value of P800,000. The land has an
unpaid mortgage of P200,000 which is
assumed by the partnership. How much is the
correct valuation of R's capital immediately
after the partnership formation?
a. P400,000
b. P500,000
C. P600,000
d. P800,000
contributions
c. a decreased amount with a corresponding
increase to the other partner's asset
contributions
d. bor c, depending on which partner is
receiving the bonus
13. On July 1, a partnership was formed by Wand 14. Tingga contributes equipment to a
B. W contributed the cash. B previously a sole
proprietor, contributed property other than
cash including realty subject…
Required information
Important Note!
Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this
problem.
[The following information applies to the questions displayed below.] **
Ramer and Knox began a partnership by investing $68,000 and $102,000, respectively. During its first year, the
partnership earned $205,000. Prepare calculations showing how the $205,000 income is allocated under each separate
plan for sharing Income and loss.
Important Notel
Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem.
1. The partners did not agree on a plan, and therefore share Income equally
Ramer
Knox
Show Transcribed Text
Chapter 12 Solutions
Horngren's Accounting (12th Edition)
Ch. 12 - Prob. 1QCCh. 12 - Prob. 2QCCh. 12 - Prob. 3QCCh. 12 - Which financial statement shows the changes in...Ch. 12 - Prob. 5QCCh. 12 - Prob. 6QCCh. 12 - Prob. 7QCCh. 12 - Peter and Steve admit Meredith to their...Ch. 12 - Prob. 9QCCh. 12 - Prob. 10QC
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQCh. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - What are the three steps involved in liquidation...Ch. 12 - Prob. 17RQCh. 12 - Prob. S12.1SECh. 12 - Prob. S12.2SECh. 12 - Prob. S12.3SECh. 12 - Prob. S12.4SECh. 12 - Prob. S12.5SECh. 12 - S12-6 Accounting for the admission of a new...Ch. 12 - Accounting for the admission of a new partner...Ch. 12 - Prob. S12.8SECh. 12 - Prob. S12.9SECh. 12 - Prob. S12.10SECh. 12 - Prob. S12.11SECh. 12 - Prob. S12.12SECh. 12 - Prob. E12.13ECh. 12 - Prob. E12.14ECh. 12 - Prob. E12.15ECh. 12 - Prob. E12.16ECh. 12 - Prob. E12.17ECh. 12 - Prob. E12.18ECh. 12 - Prob. E12.19ECh. 12 - Prob. E12.20ECh. 12 - Prob. E12.21ECh. 12 - Prob. E12.22ECh. 12 - Determining characteristics of a partnership and...Ch. 12 - Prob. P12.24APGACh. 12 - Prob. P12.25APGACh. 12 - Prob. P12.26APGACh. 12 - Prob. P12.27APGACh. 12 - Prob. P12.28APGACh. 12 - Prob. P12.29APGACh. 12 - Prob. P12.30APGACh. 12 - Prob. P12.31BPGBCh. 12 - Prob. P12.32BPGBCh. 12 - Prob. P12.33BPGBCh. 12 - Prob. P12.34BPGBCh. 12 - Prob. P12.35BPGBCh. 12 - Accounting for the liquidation of a partnership...Ch. 12 - Prob. P12.37BPGBCh. 12 - Prob. P12.38BPGBCh. 12 - Prob. P12.39CTCh. 12 - P12-40 Accounting for partner contributions,...Ch. 12 - Prob. 12.1TIATCCh. 12 - Prob. 12.1DCCh. 12 - Prob. 12.2DCCh. 12 - Prob. 12.1EICh. 12 - Prob. 12.1FSC
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