Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 15, Problem 1EA
On May 1, 2017, BJ and Paige formed a
Prepare a separate
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Students have asked these similar questions
On December 31, 2024, Denis and Gamber agree to combine their sole proprietorships into a partnership. Their balance sheets on December 31 are shown as follows:
(Click the icon to view the balance sheets.)
Read the requirements.
.....
Requirement 1. Journalize the contributions of Denis and Gamber to the partnership. (Record debits first, then, credits. Select explanations on the last line of the journal entry table.)
Journalize the contribution of Denis.
Date
Accounts and Explanation
Debit
Credit
Data table
Dec. 31
Denis's Business
Gamber's Business
Current
Current
Market
Book Value
Market Value Book Value
Value
Assets
Cash
17,000 $
17,000 $
5,000 $
5,000
Accounts Receivable
27,000
25,000
8,000
6,000
Merchandise Inventory
57,000
51,000
32,000
32,000
122,000
104,000
52,000
56,000
Plant Assets, Net
223,000 $
197,000 $
97,000 $
99,000
Total Assets
Requirements
Liabilities and Owner's Equity
Accounts Payable
31,000 $
31,000 $
10,000 $
10,000
Other Accrued Payables
11,000
11,000
1.…
On May 1, 2017, BJ and Paige formed a partnership. Each contributed assets with the following agreed-upon valuations.
BJ
Paige
Cash
80,000
20,000
Equipment
50,000
60,000
Building
0
240,000
Loan payable
0
100,000
Prepare separate journal entries to record the transfer of each proprietorship’s assets and liabilities to the partnership.
Further, it is agreed that Sorensen will invest an additional $5,100 in cash, and Lucas will invest an additional $19.400 in cash. Journalize the additional cash investment by each partner.
Prepare a classified balance sheet for the partnership on January 1, 2022.
Chapter 15 Solutions
Principles of Accounting Volume 1
Ch. 15 - A partnership ________. A. has one owner B. can...Ch. 15 - Any assets invested by a particular partner in a...Ch. 15 - Which of the following is a disadvantage of the...Ch. 15 - Mutual agency is defined as: A. a mutual agreement...Ch. 15 - Chani contributes equipment to a partnership that...Ch. 15 - Juan contributes marketable securities to a...Ch. 15 - Which one of the following would not be considered...Ch. 15 - A well written partnership agreement should...Ch. 15 - What type of assets may a partner not contribute...Ch. 15 - How does a newly formed partnership handle the...
Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - When a partnership dissolves, the first step in...Ch. 15 - When a partnership dissolves, the last step in the...Ch. 15 - Prior to proceeding with the liquidation, the...Ch. 15 - Does a partnership pay income tax?Ch. 15 - Can a partners personal assets in a limited...Ch. 15 - Can a partnership assume liabilities as part of...Ch. 15 - Does each partner have to contribute an equal...Ch. 15 - What types of bases for dividing partnership net...Ch. 15 - Angela and Agatha are partners in Double A...Ch. 15 - On February 3, 2016 Sam Singh invested $90,000...Ch. 15 - Why do partnerships dissolve?Ch. 15 - What are the four steps involved in liquidating a...Ch. 15 - When a partner withdraws from the firm, which...Ch. 15 - What is the first step in a partnership...Ch. 15 - When a partnership liquidates, do partners get...Ch. 15 - Coffee Partners decides to close due to the...Ch. 15 - On May 1, 2017, BJ and Paige formed a partnership....Ch. 15 - The partnership of Chase and Chloe shares profits...Ch. 15 - The partnership of Tasha and Bill shares profits...Ch. 15 - Cheese Partners has decided to close the store. At...Ch. 15 - The partnership of Michelle, Amal, and Maureen has...Ch. 15 - The partnership of Tatum and Brook shares profits...Ch. 15 - Arun and Margot want to admit Tammy as a third...Ch. 15 - When a partnership is liquidated, any gains or...Ch. 15 - The partnership of Magda and Sue shares profits...Ch. 15 - The partnership of Arun, Margot, and Tammy has...Ch. 15 - Match each of the following descriptions with the...Ch. 15 - While sole proprietorships and corporations are...Ch. 15 - A partnership is thriving. The three partners get...
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