Middleton capital account balance before revaluation | 117000 |
Share in revaluation [38000*30%] | 11400 |
Final capital balance | 128400 |
Note:
Total revaluation = 24500+13500 = 38000
Exercise 19.12 Recording withdrawal of a partner. LO 19-9 25 points William, Henderson, and Middleton are...
Exercise 19.10 Recording revaluation of assets prior to dissolution of a partnership. LO 19-6 Tommy Riley and Derrick Victor are partners who share profits and losses in the ratio of 40:60, respectively. On December 31, 2019. they decide that Victor will sell one-half of his interest to John Lynch. At that time, the balances of the capital accounts are 5241,000 for Riley and $341,000 for Victor. The partners agree that before the new partner is admitted, certain assets should be...
Exercise 19.4 Computing and recording allocation of net income with salaries and interest allowed. LO 19-4 Connie Lacy and Lelia Cook are partners who share profits and losses in the following manner. Lacy receives a salary of $92,000 and Cook receives a salary of $136,000. These amounts were paid to the partners and charged to their drawing accounts. Both partners also receive 10 percent interest on their capital balances at the beginning of the year. The balance of any remaining...
If annual major repairs made in the first quarter and paid for in the second quarter clearly benefit the entire year, when should they be expensed? An allocated portion in each of the last three quarters 1. a. An allocated portion in each quarter of the year In full in the first quarter In full in the second quarter b. c. d. During the second quarter of 2011, Dodge Company sold a 2. piece of equipment at a gain of...