CP 12–3 Assume the following information just prior to the admission of new partner I:
Assets |
Liabilities |
||||
Cash |
5,000 |
Accounts Payable |
8,000 |
||
Accounts Receivables |
43,000 |
||||
Partners’ Capital |
|||||
G, Capital |
30,000 |
||||
H, Capital |
10,000 |
40,000 |
|||
48,000 |
48,000 |
Required: Prepare journal entries to record the following unrelated scenarios:
1. New partner I purchases partners G’s partnership interest for $40,000.
2. New partner I receives a cash bonus of $2,000 and a one-tenth ownership share, allocated equally from the partnership interests of G and H.
3. New partner I contributes land with a fair value of $100,000.
Relative ownership interests after this transaction are: Partner Ownership Interest G 20%, H 5%, I 75%, Total 100%
Required: Prepare journal entries to record the following unrelated scenarios:
1. New partner I purchases partners G’s partnership interest for $40,000.
2. New partner I receives a cash bonus of $2,000 and a one-tenth ownership share, allocated equally from the partnership interests of G and H.
3. New partner I contributes land with a fair value of $100,000.
Relative ownership interests after this transaction are: Partner Ownership Interest G 20%, H 5%, I 75%, Total 100%
Refer to the below images for more detailed solution.
CP 12–3 Assume the following information just prior to the admission of new partner I: Assets...
sCP 12–4
Assume the following information just prior to the withdrawal of
Partner X:
Assets Liabilities
Cash $20,000 Accounts payable $ 5,000
Inventory 50,000
Partners’ Capital
X, Capital $10,000
Y, Capital 20,000
Z, Capital 35,000 65,000
$70,000 $70,000
Required: Prepare journal entries to record the following unrelated
scenarios:
1. Partner X sells his interest to new partner T for $25,000.
2....
Assume the following information just prior to the withdrawal of Partner X: Assets Liabilities Cash $20,000 50,000 Accounts payable $5,000 Inventory Partners' Capital $10,000 20,000 35,000 X, Capital Y, Capital Z, Capítal 65,000 $70,000 $70,000 Required: Prepare journal entries to record the following unrelated scenarios: 1. Partner X sells his interest to new partner T for $25,000. 2. Partner X sells his interest to partner Y for $30,000. 3. Partner X sells his interest and is paid a share of...
Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $178,500 and $128,400, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $41,100 and one-fourth of Chou’s interest for $28,200. Clarke contributes $43,600 cash to the partnership, for which she is to receive an ownership equity of $43,600. a1. Journalize the entry to record the admission of...
OOK Show Me How Calculator Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $161,000 and $116,000, respectively. Leanne Gibertad Bedry Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $37,000 and one fourth of Chou's interest for $25.500. Clare contributes $39.100 cash to the partnership, for which she is to receive an ownership equity of $39,300. al. Journalize the entry...
Part B (2020) a. On December 31, 2020 new partner D invests other assets into the partnership for a one-quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make up the difference. At December 31, 2020, the partners' capital balances are as follows: A $200,000 B 180,000 C 190,000 $570,000 Fair value of other assets from D $50,000 b. Immediately after this, partner C withdraws from the partnership. She is paid in cash...
26. In admission of a new partner by investment, bonus is recorded when A total agreed capital is less than total contributed capital B. total agreed capital is equal to total contributed capital and the capital credit of the new parner s greater than his capital contribution C. total agreed capital is equal to total contributed capital. D. total agreed capital is equal to total contributed capital and the capital credit of the old partners is equal to their capital...
DO EX 12-11 Admitting new partners who buy an interest and contribute assets The capital accounts of Jonathan Faber and Faheem Ahmad have balances of $150,000 and $110,000, respectively. Lauren Wells and Rachel Lee are to be admitted to the part nership. Wells buys one-fifth of Faber's interest for $35,000 and one-fourth of Ahmad's interest for $25,000. Lee contributes $70,000 cash to the partnership, for which she is to receive an ownership equity of $70,000. a. Journalize the entries to...
Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $145,500 and $104,800, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $33,500 and one-fourth of Chou's interest for $23,100. Clarke contributes $35,500 cash to the partnership, for which she is to receive an ownership equity of $35,500. al. Journalize the entry to record the admission of...
Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $139,000 and $100,000, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $32,000 and one-fourth of Chou’s interest for $22,000. Clarke contributes $33,900 cash to the partnership, for which she is to receive an ownership equity of $33,900. a1. Journalize the entry to record the admission of...
Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $188,500 and $135,600, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $43,400 and one-fourth of Chou's interest for $29,800. Clarke contributes $46,000 cash to the partnership, for which she is to receive an ownership equity of $46,000. al. Journalize the entry to record the admission of...