College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 19, Problem 1SEB
To determine
Prepare the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Partnership Opening Entries
Lisa Morris and Joyce Laski agreed on September 1 to go into business as partners.
According to the agreement, Morris is to contribute $40,000 cash and Laski is to
contribute $65,000 cash.
Provide a separate journal entry for the investment of each partner.
Page: 1
DOC. POST.
NO. REF.
DATE
ACCOUNT TITLE
DEBIT CREDIT
20--
Sept. 1
2.
3
4 Sept. 1
5
6.
N m + no
Entries for Allocation of Net Income
Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $100,000 and Wilson invested $25,000. For the fiscal year ended June 30, 20-2, a net income of $79,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions:
Income to be allocated
$fill in the blank 1
Spurlock
Wilson
Total
1. There is no agreement concerning the distribution of net income.
$fill in the blank 2
$fill in the blank 3
$fill in the blank 4
2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally.
$fill in the blank 5
$fill in the blank 6
$fill in the blank 7
3. Spurlock and Wilson are to receive a salary allowance of $33,000 and $24,000, respectively.The remaining net income is to be divided equally.
$fill in the blank 8
$fill in the blank 9
$fill in the blank 10
4. Each…
The partners in the Majesty partnership have agreed that partner Prince may sell his $150,000 equity in the partnership to Queen, for
which Queen will pay Prince $120,000. Present the partnership's journal entry to record the sale on April 30.
View transaction list
Journal entry worksheet
1
>
Record the admission of Queen.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Apr 30
Record entry
Clear entry
View general journal
Chapter 19 Solutions
College Accounting, Chapters 1-27
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Admitting New Partner With Bonus Admitting New Partner With Bonus L. 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 $20,000. The capital balances of each partner are $75,000 and $101,500, 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.b. Provide the journal entry for Ortiz’s admission under the following independent situations: 1. Ortiz purchased a 20% interest for $34,000. If an amount box does not require an entry, leave it blank. 2. Ortiz purchased a 30% interest for $85,000. If an amount box does not require an entry, leave it blank.arrow_forwardBloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $600 cash, $1900 equipment and a $500 note payable reflecting a bank loan for the new business. Plant's initial investment is cash of $3000. These amounts are the values agreed on by both partners. The journal entry to record Plant's investment is: Please don't provide answer in image format thank youarrow_forwardSECTION: PROFESSOR: Problem #14 Admission by Investment of Assets On Jan. 31, 2019, Partners Abad, Ramos and Cammayo had the following loan and capital account balances (after closing entries for Jan.): Loan receivable from Abad P 20,000 dr 60,000 cr Abad payable to Cammayo Abad, Capital Ramos, Capital Cammayo, Capital 30,000 dr 120,000 cr 70,000 cr The partnership's income-sharing ratio was Abad, 50%; Ramos, 20%; and Cammayo, 30%. On Jan. 31, 2019, Gonzales was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of P40,000 cash. Prior to Gonzales's admission, the existing partners agreed to increase the carrying amount of the partnership's inventories to current fair value, a P60,000 increase. Required: Prepare the journal entries the increase in inventories and the admission of Gonzales.arrow_forward
- 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…arrow_forwardAdmitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Elayne Summers and Murv Newcomb have balances of $82,000 and $131,000, respectively. Rose Clayton is to be admitted to the partnership, contributing $55,000 cash to the partnership, for which she is to receive an ownership equity of $72,000. All partners share equally in income. a. Journalize the entry to record the admission of Rose Clayton, who is to receive a bonus of $17,000. If an amount box does not require an entry, leave it blank. Cash Elayne Summers, Capital Murv Newcomb, Capital Rose Clayton, Capital Feedback ►Check My Work b. What are the capital balances of each partner after the admission of the new partner? Partner Elayne Summers Murv Newcomb Rose Clayton 55,000 $ Balance 94,500 X $ 143,500 X 30,000 Xarrow_forwardAdmitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Elayne Summers and Murv Newcomb have balances of $116,000 and $197,000, respectively. Rose Clayton is to be admitted to the partnership, contributing $78,000 cash to the partnership, for which she is to receive an ownership equity of $101,000. All partners share equally in income. a. Journalize the entry to record the admission of Rose Clayton, who is to receive a bonus of $23,000. If an amount box does not require an entry, leave it blank. b. What are the capital balances of each partner after the admission of the new partner? Partner ▼ Elayne Summers Murv Newcomb Rose Clayton Balance c. Why are tangible assets adjusted to current market prices prior to admitting a new partner? Tangible assets should be adjusted to current market prices so that the new partner any gains or losses from changes in market prices prior to being admitted. For example,…arrow_forward
- Admitting New Partner With Bonus L. 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 $8,000. The capital balances of each partner are $93,000 and $130,500, respectively, prior to the revaluation. a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. L. Bowers, Cap ✔ 4,000 ✓ V. Lipscomb, Cal ✓4,000 ✓ Equipmen Feedback ►Check My Work b. Provide the journal entry for Ortiz's admission under the following independent situations: 1. Ortiz purchased a 20% interest for $47,000. If an amount box does not require an entry, leave it blank. Cash ✓ 47,000 ✓ L. Bowers, Cap ✓ V. Lipscomb, Cal ✔ M. Ortiz, Capi✓ ✓ Feedback Check My Work 8,000✔ ✓ 52,500✔ 2. Ortiz purchased a 30% interest for $118,000. If an amount box does not require an entry, leave it blank. Cash ✔ 118,000 ✓ L.…arrow_forwardFinancial Statements for Partnership The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y2: Ramirez and Xue Trial Balance December 31, 20Y2 Debit Balances Credit Balances Cash 50,400 Accounts Receivable 48,000 Supplies 1,800 Land 120,000 Building 128,600 Accumulated Depreciation—Building 75,000 Office Equipment 55,200 Accumulated Depreciation—Office Equipment 23,300 Accounts Payable 35,800 Salaries Payable 3,800 Camila Ramirez, Capital 120,000 Camila Ramirez, Drawing 54,000 Ping Xue, Capital 72,000 Ping Xue, Drawing 78,000 Professional Fees 433,400 Salary Expense 175,200 Depreciation Expense—Building 17,400 Heating and Lighting Expense 8,600 Depreciation Expense—Office Equipment 5,400 Property Tax Expense 10,800 Supplies Expense 6,200…arrow_forwardFinancial Statements for Partnership The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y2: Ramirez and Xue Trial Balance December 31, 20Y2 Debit Balances Credit Balances Cash 53,300 Accounts Receivable 50,800 Supplies 1,900 Land 127,000 Building 139,800 Accumulated Depreciation—Building 79,400 Office Equipment 58,400 Accumulated Depreciation—Office Equipment 24,600 Accounts Payable 37,800 Salaries Payable 4,100 Camila Ramirez, Capital 130,000 Camila Ramirez, Drawing 57,200 Ping Xue, Capital 76,200 Ping Xue, Drawing 82,600 Professional Fees 459,400 Salary Expense 185,400 Depreciation Expense—Building 18,400 Property Tax Expense 11,400 Heating and Lighting Expense 9,100 Supplies Expense 6,600 Depreciation Expense—Office Equipment 5,700…arrow_forward
- Financial Statements for Partnership The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y2: Ramirez and Xue Trial Balance December 31, 20Y2 Debit Balances Credit Balances Cash 46,200 Accounts Receivable 44,000 Supplies 1,700 Land 110,000 Building 121,400 Accumulated Depreciation—Building 68,800 Office Equipment 50,600 Accumulated Depreciation—Office Equipment 21,300 Accounts Payable 32,800 Salaries Payable 3,500 Camila Ramirez, Capital 110,000 Camila Ramirez, Drawing 49,500 Ping Xue, Capital 66,000 Ping Xue, Drawing 71,500 Professional Fees 400,900 Salary Expense 160,600 Depreciation Expense—Building 15,900 Heating and Lighting Expense 7,900 Depreciation Expense—Office Equipment 5,000 Property Tax Expense 9,900 Supplies Expense 5,700…arrow_forwardAdmitting New Partner With Bonus L. 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 $11,000. The capital balances of each partner are $94,500 and $131,500, respectively, prior to the revaluation. a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. L. Bowers, Capital V. Lipscomb, Capital Equipment Feedback ✓ L. Bowers, Capital V. Lipscomb, Capital M. Ortiz, Capital 5,500 Feedback 5,500 Check My Work a. Adjust the equipment and adjust each partner's equity account in their income-sharing ratio 11,000 b. Provide the journal entry for Ortiz's admission under the following independent situations: 1. Ortiz purchased a 20% interest for $46,000. If an amount box does not require an entry, leave it blank. Cash menem 46,000 1,500 X 1,500 X 43,000 X Check My Work b.1.…arrow_forwardAdmitting New Partners 1. Prepare general journal entries showing the transactions admitting Bridges and Terrell to the partnership. If an amount box does not require an entry, leave it blank. 2. Calculate the ending capital balances of all four partners after the transactions. Jeff Bowman and Kristi Emery, who have ending capital balances of $100,900 and $53,500, respectively, agree to admit two new partners to their business on August 18, 20--. Dan Bridges will buy one-fifth of Bowman’s capital interest for $28,580 and one-fourth of Emery’s capital interest for $30,325. Payments will be made directly to the partners. Anna Terrell will invest $58,905 in the business, for which she will receive a $58,905 capital interestarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning