Homework Answers
answer to part 1 using simple reclassification of capitals
answer to part 2 based on
bonus method
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1. Martin, Francis, and James have been in operation for over ten years and the existing...
3. Johnston and Dune have the following capital balances of $160,000 and 130,000. After operating for...
3. Johnston and Dune have the following capital balances of $160,000 and 130,000. After operating for five years on their own, they decide to let Smith join the partnership for $80,000 and 20% ownership. In addition, the Articles of partnership state that Johnston and Dune will split proceeds on a 70 percent (Johnston) and 30 percent (Dune) basis. The cash paid by Smith with go directly to the business. Create the journal entry using the goodwill method, show your work....
yuiuuLIUI13. Assignment: Problem 1: Eaton and Foley have capital balances of &50,000 and $30,000 respectively, at...
yuiuuLIUI13. Assignment: Problem 1: Eaton and Foley have capital balances of &50,000 and $30,000 respectively, at the beginning of the current fiscal year. The articles of partnership provide for an interest allowance at a rate of 8% on the capital balances at the beginning of the year, salary allowances of $18,000 and $12,000 respectively and the remaining net income divided equally. Net income for the current year is $30,000. a) Divide the net income between the partners. thon b) Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $7,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 66,000 250,000 Liabilities Alex, capital Bess, capital Total liabilities and capital $ 48,000 150,000 118,000 $ 316,000 Total assets $ 316,000 Part A: Prepare...
Answer all HH and נR are fashion designers who agreed to form a partnership to open a dothing store. An attorney prepares the partnership agreement, indicates that assets invested in the partnersh...
Answer all
HH and נR are fashion designers who agreed to form a partnership to open a dothing store. An attorney prepares the partnership agreement, indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value. The assets contributed by each partner and the liabilities assumed by the partnership follow. Assets Cash Accounts receivable Allowance for uncollectible accounts Book value Allowance for uncollectible accounts Fair Value Supplies...
Question 3) Trumming and Nancy are successful partners. They share profits and losses equally. Their current...
Question 3) Trumming and Nancy are successful partners. They share profits and losses equally. Their current capital account balances are $20 and $10 respectively. They decide to admit Tyler to the partnership. Tyler invests $25 for a 20 per cent share of the partnership. The journal entry to admit Tyler will include: debit Trumming, capital $11.00 debit Nancy, capital $9.75 credit Trumming, capital $9.75 credit Nancy, capital $7.00 Question 4) A machine with a cost of $90 000 has an...
Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his...
Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016. O'Donnell invests a building worth $108,000 and equipment valued at $64,000 as well as $98,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances To entice...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows: Purkerson Smith Traynor $ 58, eee 38,000 20,000 - Due to a cash shortage, Purkerson invests an additional $12,000 in the business on April 1, 2018 Each partner is allowed to withdraw $900 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: • Each...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows: Purkerson $ 70,000 Smith 50,000 Traynor 20,000 Due to a cash shortage, Purkerson invests an additional $10,000 in the business on April 1, 2018. Each partner is allowed to withdraw $800 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: Each partner is given...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows: Purkerson $ 72,000 Smith 52,000 Traynor 20,000 Due to a cash shortage, Purkerson invests an additional $12,000 in the business on April 1, 2018. Each partner is allowed to withdraw $900 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: Each partner is given...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership....
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows: Purkerson $ 66,000 Smith 46,000 Traynor 20,000 Due to a cash shortage, Purkerson invests an additional $10,000 in the business on April 1, 2018. Each partner is allowed to withdraw $600 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: Each partner is given...
3. Johnston and Dune have the following capital balances of $160,000 and 130,000. After operating for five years on their own, they decide to let Smith join the partnership for $80,000 and 20% ownership. In addition, the Articles of partnership state that Johnston and Dune will split proceeds on a 70 percent (Johnston) and 30 percent (Dune) basis. The cash paid by Smith with go directly to the business. Create the journal entry using the goodwill method, show your work....
yuiuuLIUI13. Assignment: Problem 1: Eaton and Foley have capital balances of &50,000 and $30,000 respectively, at the beginning of the current fiscal year. The articles of partnership provide for an interest allowance at a rate of 8% on the capital balances at the beginning of the year, salary allowances of $18,000 and $12,000 respectively and the remaining net income divided equally. Net income for the current year is $30,000. a) Divide the net income between the partners. thon b) Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $7,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 66,000 250,000 Liabilities Alex, capital Bess, capital Total liabilities and capital $ 48,000 150,000 118,000 $ 316,000 Total assets $ 316,000 Part A: Prepare...
Answer all
HH and נR are fashion designers who agreed to form a partnership to open a dothing store. An attorney prepares the partnership agreement, indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value. The assets contributed by each partner and the liabilities assumed by the partnership follow. Assets Cash Accounts receivable Allowance for uncollectible accounts Book value Allowance for uncollectible accounts Fair Value Supplies...
Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016. O'Donnell invests a building worth $108,000 and equipment valued at $64,000 as well as $98,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances To entice...
Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows: Purkerson Smith Traynor $ 58, eee 38,000 20,000 - Due to a cash shortage, Purkerson invests an additional $12,000 in the business on April 1, 2018 Each partner is allowed to withdraw $900 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: • Each...
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