College Accounting, Chapters 1-27, Loose-leaf Version
22nd Edition
ISBN: 9781305667624
Author: James A. Heintz, Robert W. Parry
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 19, Problem 6SPB
To determine
Prepare the opening entry for the formation of the
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
PARTNERSHIP OPENING ENTRIES On July 1, 20--, Susan Woodworth and Barbara Holly combined their two businesses to form a partnership under the firm name of Woodworth and Holly. The balance sheets of the two sole proprietorships are shown below and on the next page.The balance sheets reflect fair market values except for the following:(a) The fair market value of Woodworth’s store equipment is $7,500.(b) The fair market values of Holly’s office equipment and store equipment are $6,100 and $6,800, respectively.RequiredPrepare the opening entry for the formation of the Woodworth and Holly partnership as of July 1, 20--, using fair market values. The difference between assets invested and liabilities assumed should be credited to each partner’s capital account. Neither partner has knowledge of any uncollectible accounts receivable.
Show the solution
Need journal entries
Chapter 19 Solutions
College Accounting, Chapters 1-27, Loose-leaf Version
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
- PART L PARTNERSHIP FORMATION AND OPERATIONS On May 1, 2018, three existing sole proprietors in Cotabato City agreed to form a partnership to engage in a manufacturing business. Their contributions are as follow: Juana Laura Zenny Cordillo 200.000 350,000 500,000 50,000 Mendez Sevilla Cash in Bank Land Office Building Accumulated Depreciation-Office Building Office Equipment Accumulated Depreciation-Office Equipiment Furniture and Fixtures Accumulated Depreciation-Furniture & Fixtures Accounts Payable Mortgage Payable 200.000 200, 000 270,000 20,000 95,000 5,000 20,000 190,000 10,000 10,000 200,000 The partners also agreed that the new partnership will assume their respective sole proprietorship liabilities, and agreed further that the partnership's starting capitalization should be at P2,000,000, and that they are to contribute additional cash necessary to make their individual capital to equal their profit and loss ratio of 3:4:3, respectively. Requirement #1: Prepare journal entries…arrow_forwardSubject- accountingarrow_forwardHomework Activity 1 A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000, B 1500, C 1000 Interest on drawings: A 200, B 150, C 100 Salary to Partners A 500 B 700 C 600 Commission to Partners A 200 B 300 C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.arrow_forward
- EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 1. Cash contribution amounting to $45,000 each. 2. Kim contributed $35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed $15,000 cash and a delivery vehicle with a fair market value of $195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. 3. Kim contributed $10,000 cash and furniture and fixtures with carrying value of $32,000. Krislam contributed $5,000 cash and a building with a fair market value of $295,000 and an unpaid mortgage of $27,500. Kim and Krislam agreed that building is undervalued by $9,000. 4. Kim contributed $25,000 cash, a store equipment with fair market value of $47,000, and delivery vehicle with a fair market value of $175,000. Krislam, an industrial partner, was to contribute her…arrow_forwardExercise 2-3 Record the entries of the partnership formation for the following independent cases: Case A-On July 1, 2020, Rose, Guada and Marie decided to form the Argem Company, a general partnership. Rose invested cash worth P 500,000 and a computer that cost her P 60,000 with Accumulated Depreciation of P 15,000. Guada invested office tables and chairs worth P 100,000 and Marie invests her management expertise to the business operation. Case B- On May 1, 2020, Romy and Vic formed a partnership contributing assets with the following agreed valuations: Building Office Equipment Furniture and Fixture Cash Accounts Receivable Allowance for Doubtful Accounts Romy P1,500,000 30,000 The partners agreed that the partnership will assume the P 300,000 mortgage loan on Building and that Vic will contribute additional cash to make his capital balances equal to 40% of the total partnership equity. Office Supplies Office Equipment Case C- After the formation of RGM Partnership on July 4, 2020,…arrow_forwardInstructions Instructions Chart of Accounts General Journal X Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $47,000 and equipment with a cost of $178,000 and accumulated depreciation of $102,000. The partners agree that the equipment is to be valued at $68,400, that $4,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,200 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $20,500 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500. Required: Journalize the entries to record in the partnership accounts (a) Jesse's investment and (b) Tim's investment. Refer to the Chart of Accounts for exact wording of account titles.arrow_forward
- Question 6 On January 1 Steve Froese, Mark Popse and Nick Antler agreed to form a partnership called FPA Consulting. On December 31 the partnership reported a loss for the year of $15,000. The partnership agreement is to provide for the following sharing of profit and losses: Popse Antler Froese $ 30,000 $ 50,000 $ 35,000 Salary allowance.. Fixed ratios.. 2 3 Required: 1. Prepare a schedule to show the division of loss at December 31 2. Prepare the journal entry to record the allocation of the partnership loss on December 31.arrow_forwardProblem #10 Two Sole Proprietors Form a Partnership On Oct. 31, 2019, Apalisoc and Tuddao agreed to combine their proprietorships as a partnership. Their statements of financial position are as follows: Apalisoc's Business Tuddao's Business Book Current Book Current Market Value Assets Value Market Value Value P 80,000 80,000 340,000 535,000 P 80,000 63,000 351,000 574,000 P 37,000 37,000 220,000 Cash 202,000 Accounts Receivable (net) Inventory Property and Equipment (net) 510,000 460,000 1,235,000 P1,934,000 1,218,000 P1,985,000 P1,035,000 P1,068,000 Total Assets Liabilities and Capital P 236,000 22,000 P 91,000 14,000 91,000 14,000 P 236,000 Accounts Payable Accrued Expenses Notes Payable Apalisoc, Capital Tuddao, Capital Total Liabilities & Capital 22,000 750,000 977,000 750,000 930,000 P1,035,000 P1,985,000 P1,934,000 P1,068,000 Required: 1. Record the partnership formation. 2. Prepare the partnership's statement of financial position as at Oct. 31, 2019.arrow_forwardQUESTION 1 Petu, Mika and Simon are in a partnership and share profits or losses in the ratio 3:2:1. Petu, Mika and Simon received salaries of N$120 000, N$100 000 and N$80 000 respectively as well as 10% interest on the opening balance of their capital. Petu received an entertainment allowance of N$20 000. Apele is the general manager. PMS PARTNERSHIP Statement of financial position as at 31 December 2019 ASSETS N$ N$ Non-current assets Land and building 420 000 Vehicles 100 000 Total non-current assets 520 000 Current assets Inventories 10 000 Receivables 50 000 Cash and cash equivalents 110 000 Total current assets 170 000 Total assets 690 000 EQUITY AND LIABILITIES Equity Capital: 420…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 40,700 Accounts Receivable 38,800 Supplies 1,500 Land 97,000 Building 105,600 Accumulated Depreciation—Building 60,600 Office Equipment 44,600 Accumulated Depreciation—Office Equipment 18,800 Accounts Payable 28,900 Salaries Payable 3,100 Camila Ramirez, Capital 100,000 Camila Ramirez, Drawing 43,700 Ping Xue, Capital 58,200 Ping Xue, Drawing 63,100 Professional Fees 349,200 Salary Expense 141,600 Depreciation Expense—Building 14,100 Heating and Lighting Expense 7,000 Depreciation Expense—Office Equipment 4,400 Property Tax Expense 8,700 Supplies Expense 5,000…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_forwardMake-up assignment Partnership Dissolution Instruction: Prepare the answers and solutions in written form using a clean paper (e.g. Yellow pad, bond paper, notebook etc.) and submit a snapshot in CANVAS. Problem 1. A and B are partners in an electrical repair business. Their respective capital balances are P90,000 and P50,000, and they share profits or losses equally. Because the partners are confronted with personal financial problems, they decided to admit a new partner to the partnership. After an extensive interviewing process, they elect to admit C into the partnership. Required: Prepare the journal entry to record the admission of C into the partnership and determine capital balances of A, B and C under each of the following condition: 1. Cacquires one-fourth interest of A's capital interest by paying 30,000 directly to him. 2. Cacquires one-fifth interest of each A and B capital interest. A receives P25,000 and B receives P15,000 directly from C. 3. Cacquires a one-fifth…arrow_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
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
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
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage