College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 19, Problem 8SPA
1.
To determine
Prepare the general
2.
To determine
Prepare the necessary journal entry by assuming that Person D is paid $50,000 for the book value of Person D’s capital account.
3.
To determine
Prepare the general journal entry for the partnership.
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Apel, Ere and Inie have been in partnership since school days, sharing profits and losses in the ratio 3:2:1. On 31/12/2020, they have decided to dissolve their partnership. Below is their last statement of financial position prior to dissolution of the partnership.
Statement of financial position as at 31/12/2020.
Non-current asset.
Premises 150000
Machinery 36000
Motor vehicles 14000
200,000
CURRENT ASSETS
Inventory 11000
Trade receivable 7600
Bank 1200 19800
Total Assets 219800
Liabilities & Capitals
Trade payables 6400
Capital…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as
of December 31, 2023:
Account balances December 31, 2023
Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on
January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.
David
Olena
Accum.
Deprec. Accounts
Danny
Notes Wallace, Dunn,
Lin,
Equipment Equipment Payable Payable Capital Capital Capital
$19,300 $161,000 $92,000 $7,300 $15,000 $34,000 $17,000 $15,000
Cash
Required:
1. Complete the schedule. (Negative answers should be indicated by a minus sign.)
Account balances December 31, 2023
Sale of equipment
Balance
Payment of liabilities
Balance
Cash
Equipment
Accum.
Deprec.
Equipment
$ 19,300 $ 161,000 $
59,000
161,000
322,000 $
$ 78,300 $
$ 78,300 $
322,000 $
Accounts
Payable
92,000 $
92,000
184,000 $
184,000 $
Notes
Payable…
3) Dalia, Stephanie, and Judy were partners under a written agreement made in January that the partnership should continue for ten years. During the same year, Judy being indebted to a Mr. Greene, sold and conveyed her interest in the partnership to Mr. Greene.
The partnership paid Mr. Greene $50,000 as Judy's share of the profits for that year, but refused Mr. Greene permission to inspect the books or to come into the managing office of the partnership. Mr.Greene brings an action setting forth the above facts.
Explain The Reasons For Your Answer:
(a) Does Judy selling her interest in the partnership to Mr. Greene dissolve the partnership? Explain the reason for your answer.
(b) To what is Mr. Greene entitled:
(1) Inspection of partnership books?
(2) Participation in management of the partnership?
(3) Account of partnership transactions?
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
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