Question

were within ulem withdrawals on each the ratio of 4:3 for Marvel Media 20Y2 were , Amounts equal to the salary and interest allowances were will Determine the division of income among the three members. b. Prepare the pour e the journal entry to close the revenues, expenses, and with individual member equity accounts. c. Prepare a statement of members' equity for 20Y2, d what are the advantages of an income-sharing agreement for them the members of this ncome equally and consent of San ed by the partneri EX 12-9 Admitting new partners Myles Enter and Crystal Santori are partners who share in the income capital balances of $210,000 and $62,500, respectively. Etter, with the con sells one-third of his interest to Lonnie Davis. What entry is required by the if the sales price is (a) $60,000? (b) $80,000? OBL 60.000 and $100.94 admitted to the partnershie EX 12-10 Admitting new partners who buy an interest and contribute assets The capital accounts of Trent Henry and Tim Chou have balances of $160,000 and respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the Gilbert buys one-fifth of Henry's interest for $35,000 and one-fourth of Chou's in $29,000. Clarke contributes $90,000 cash to the partnership, for which she is to an ownership equity of $90,000. Journalize the entries to record the admission of (1) Gilbert and (2) Clarke b. What are the capital balances of each partner after the admission of the new partner BX 12-11 Admitting new partner who contributes assets 08. Aher the tangible assets have been adjusted to current market prices, the capital account of Brad Paulson and Drew Webster have balances of $45.000 and $60,000, respective Austin Neel is to be admitted to the partnership, contributing $30,000 cash to the par nership for which he is to receive an ownership equity of $35.000. All partners share equally in income - Journaline the entry to record the admission of Neel, who is to receive a bonus of $50 What are the capital balances of each partner after the admission of the new pun Why are tangible assets adjusted to current market prices prior to a partner 012-12 Admitting new partner with bonus Cody Jenkins and Lacey Tanner formed na and Tanner shan

Answer 1

9.

Date Debit ($) 70,000 | Credit (S) Account Titles and Explanation Myles Etter Capital (210,000 x 1/3) Lonnie Davis Capital 70,000 (6) Date Debit ($) 70,000 Credit ($) Account Titles and Explanation Myles Etter Capital (210,000 x 1/3) Lonnie Davis Capital 70,000 Explanation: The sale to Lonnie Davis is not a transaction of the partnership, so the sales price is not considered in journal entry. Only one-third portion of Etter's capital is considered in the journal entry.

10.

a.

Date Credit Account Titles and Explanation Trent henry, Capital (160,000x1/5) Tim Chou, Capital (100,000x1/4) LeAnne Gilbert, Capital (To record the admission of Gilbert in the partnership firm) Debit $32,000 $25,000 $57,000 Date Credit Debit $90,000 Account Titles and Explanation Cash Becky Clarke, Capital (To record the admission of Becky Clarke in the partnership firm by giving cash) $90,000

b.

$128,000 Trent Henry, Capital ($160,000-$32,000) Tim Chou, Capital ($100,000-$25,000) LeAnne Gilbert, Capital ($32,000+$25,000) Becky Clarke Capital $75,000 $57,000 $90,000

11.

a.

Date Credit ($) Account Titles and Explanation Cash Brad paulson, Capital Drew Webster, Capital Austin Neel, Capital Debit ($) $30,000 $2,500 $2,500 $35.000

b.

Calculation of capital balance of partners after the admission of new partner Austin neel is as follows: Brad Paulson, Capital ($45,000 - $2,500) $42,500 Drew Webster, Capital ($60,000 - $2,500) $57,500 Austin Neel, Capital ($30,000 + $5,000) $35,000 is deducted Since the partners share income equally, so the bonus of $2,500 from the capital of partner Brad and Drew.

c.

Tangible assets are adjusted to the current market prices, prior to the admission of the new partner, to avoid sharing the gain and losses from the revaluation of tangible assets with the new partner.