Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Question
Chapter 15, Problem 15.16.4P
To determine
Accounting for the formation of
The individual partners must agree to the percentage of equity that each will have in the partnership’s net assets. Generally, the capital balance is determined by proportionate share of each partner’s capital contribution.
To choose:The correct answer to determine amount to be recorded as capital for W and M at the partnership formation.
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. 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 $10,000. The capital balances of each partner are $131,000 and $185,000, respectively, prior to the revaluation.
Question Content Area
a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank.
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b. Provide the journal entry for Ortiz’s admission under the following independent situations:
1. Ortiz purchased a 20% interest for $66,000. If an amount box does not require an entry, leave it blank.
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2. Ortiz purchased a 30%…
Required information Skip to question [The following information applies to the questions displayed
below.] Ramer and Knox began a partnership by investing $58,000 and $87,000, respectively. During its
first year, the partnership earned $180,000. Prepare calculations showing how the $180,000 income is
allocated under each separate plan for sharing income and loss. 2. The partners agreed to share income
and loss in proportion to their initial investments. Net income is $180,000. Note: Do not round
intermediate calculations.
Required information
[The following information applies to the questions displayed below.]
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,000,
and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership
reports the following results:
Sales revenue
Gain on sale of land (§1231)
Cost of goods sold
Depreciation-MACRS
Employee wages
Cash charitable contributions
Municipal bond interest
Other expenses
$ 70,000
8,000
(38,000)
(9,000)
(14,000)
(3,000)
2,000
(2,000)
Note: Negative amounts should be indicated by a minus sign.
c. What do you believe Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1 should be, assuming
G&P is an LLC and Gary spends 2,000 hours per year working there full time?
Self-employment income (loss)
Chapter 15 Solutions
Advanced Financial Accounting
Ch. 15 - Prob. 15.1QCh. 15 - Prob. 15.2QCh. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - Under what circumstances would a partner’s capital...Ch. 15 - Prob. 15.6QCh. 15 - Prob. 15.7QCh. 15 - Prob. 15.8QCh. 15 - Prob. 15.9QCh. 15 - Prob. 15.10Q
Ch. 15 - Prob. 15.11QCh. 15 - Prob. 15.12QCh. 15 - Prob. 15.13QCh. 15 - Prob. 15.14QCh. 15 - Prob. 15.15AQCh. 15 - Prob. 15.16BQCh. 15 - Prob. 15.1CCh. 15 - Prob. 15.2CCh. 15 - Prob. 15.3CCh. 15 - Prob. 15.1.1ECh. 15 - Prob. 15.1.2ECh. 15 - Prob. 15.1.3ECh. 15 - Prob. 15.1.4ECh. 15 - Multiple-Choice on Initial Investment [AICPA...Ch. 15 - Prob. 15.2ECh. 15 - Prob. 15.3ECh. 15 - Prob. 15.4ECh. 15 - Prob. 15.5ECh. 15 - Prob. 15.6ECh. 15 - Prob. 15.7ECh. 15 - Prob. 15.8.1ECh. 15 - Prob. 15.8.2ECh. 15 - Prob. 15.8.3ECh. 15 - Prob. 15.8.4ECh. 15 - Prob. 15.8.5ECh. 15 - Prob. 15.8.6ECh. 15 - Prob. 15.8.7ECh. 15 - Prob. 15.8.8ECh. 15 - Prob. 15.9ECh. 15 - Retirement of a Partner On January 1, 20X1, Eddy...Ch. 15 - Prob. 15.11PCh. 15 - Prob. 15.12PCh. 15 - Prob. 15.13PCh. 15 - Prob. 15.14PCh. 15 - Withdrawal of a Partner under Various Alternatives...Ch. 15 - Prob. 15.16.1PCh. 15 - Prob. 15.16.2PCh. 15 - Prob. 15.16.3PCh. 15 - Prob. 15.16.4PCh. 15 - Prob. 15.16.5PCh. 15 - Prob. 15.16.6PCh. 15 - Prob. 15.16.7PCh. 15 - Prob. 15.16.8PCh. 15 - Prob. 15.16.9PCh. 15 - Prob. 15.17PCh. 15 - Prob. 15.18PCh. 15 - Initial investments and Tax Bases [AICPA Adapted]...
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