How is the capital account balance of a new partner determined? The partnership receives the contribution...
How is the capital account balance of a new partner determined?
The partnership receives the contribution from new partner.
The partnership determines the amount of contribution retained by current partners.
The partnership determines the amount of bonus paid to current partners or new partner.
all of the above
Homework Answers
| The capital account balance of a new partner determined in following steps: |
| Receive contribution from new partner |
| Determine the amount of contribution retained by current partners |
| Determine the amount of bonus paid to current partners or new partner |
| Option D all of the above is correct option |
Add Answer to:
How is the capital account balance of a new partner
determined?
The partnership receives the contribution...
Admitting New Partner With Bonus Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping...
Admitting New Partner With Bonus Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $69,000 and $90,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Tanner deem these skills useful; thus, Solano is admitted...
17. A deficient partner A s assumed to be always insolvent B who is solvent and...
17. A deficient partner A s assumed to be always insolvent B who is solvent and has a loan to the st a tes the right of C should inmediately withdraw from the partnership D may invest additional cash The partners did not agree is to how t h e guided then ch should be divided among partners A based on original capital to B arbitrary ratio C equally D. based on ending capital ratio 19. The total partners' equity...
1. When a partner sells 40% of his interest to an outsider at a selling price...
1. When a partner sells 40% of his interest to an outsider at a selling price that is higher than 40% , A total partnership capitalization is not affected. B. the selling price becomes the new partner's capital balance. C. the new partner will have the same capital balance as the old (selling) partner. D. total partnership capitalization is increased by the amount paid by the new partner. 2. From the following statements, which is NOT TRUE of the division...
Part B (2020) a. On December 31, 2020 new partner D invests other assets into the...
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...
A new incoming partner’s contribution may suggest either the presence of previously unrecorded go...
A new incoming partner’s contribution may suggest either the presence of previously unrecorded goodwill or the appreciation of existing assets but not both. True False Use of the bonus method and use of the goodwill method are mutually exclusive choices True False Under the bonus method, the mew incoming partner’s initial capital balance is equal to that partner’s percentage interest in capital times the book value of the old partnership. True False The goodwill method recognizes increases in asset values...
Draft a balance sheet for the partnership
Alan, Bob and Charles are in partnership sharing profits and losses in the ratio 3:2:1 respectively. The balance sheet for the partnership as at 30 June 20X6 is as follows:Charles decides to retire from the business on 30 June 20X6, and Don is admitted as a partner on
that date. The following matters are agreed: (a) Certain assets were revalued: Premises £120,000; Plant £35,000; Stock £54,179. (b) Provision is to be made for doubtful debts in the sum of £3,000. (c) Goodwill is...
If Emig’s capital balance after Posada’s withdrawal is $48,250, what were (1) the total bonus to...
If Emig’s capital balance after Posada’s withdrawal is $48,250,
what were (1) the total bonus to the remaining partners and (2) the
cash paid by the partnership to Posada?
(1)
Total bonus
$
(2)
Cash paid to Posada
$
On December 31, the capital balances and income ratios in Carla
Vista Company are as follows.
Partner
Capital Balance
Income Ratio
Trayer
$64,500
50%
Emig
44,500
30%
Posada
29,500
20%
Your answer is correct.
Journalize the withdrawal of Posada under each...
On December 31, the capital balances and income ratios in Pharoah Company are as follows. Capital...
On December 31, the capital balances and income ratios in Pharoah Company are as follows. Capital Balance Income Ratio Partner Trayer Emig Posada $59,500 38,500 35,000 50% 30% 20% Journalize the withdrawal of Posada under each of the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not ind (1) Each of the continuing partners agrees to pay $17,200 in cash from personal funds to purchase Posada's ownership equity. Each receives 50% of Posada's equity. (2)...
5. When a new partner is admitted to a partnership, there should be a(n) a. increase...
5. When a new partner is admitted to a partnership, there should be a(n) a. increase in the total assets of the partnership. b. new capital account added to the ledger for the new partner. c. increase in the total owner's equity of the partnership. d. debit amount to the partner's capital account for the cash received by the current partner. 5. When a new partner is admitted to a partnership, there should be a(n) a. increase in the total...
QUESTION 11 A partnership capital account is opened for each partner to: a) Keep track of...
QUESTION 11 A partnership capital account is opened for each partner to: a) Keep track of the partners share of profits b) Keep track of the partners original and subsequent contributions c) Keep track of the partners drawing from the partnership d) All of the options avialable QUESTION 12 Which of the following statements is NOT true in regards to partnerships? a) Partners are not easily able to limit their liability b) Partnerships pay a company tax rate of 30%....
Admitting New Partner With Bonus Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $69,000 and $90,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Tanner deem these skills useful; thus, Solano is admitted...
17. A deficient partner A s assumed to be always insolvent B who is solvent and has a loan to the st a tes the right of C should inmediately withdraw from the partnership D may invest additional cash The partners did not agree is to how t h e guided then ch should be divided among partners A based on original capital to B arbitrary ratio C equally D. based on ending capital ratio 19. The total partners' equity...
1. When a partner sells 40% of his interest to an outsider at a selling price that is higher than 40% , A total partnership capitalization is not affected. B. the selling price becomes the new partner's capital balance. C. the new partner will have the same capital balance as the old (selling) partner. D. total partnership capitalization is increased by the amount paid by the new partner. 2. From the following statements, which is NOT TRUE of the division...
If Emig’s capital balance after Posada’s withdrawal is $48,250,
what were (1) the total bonus to the remaining partners and (2) the
cash paid by the partnership to Posada?
(1)
Total bonus
$
(2)
Cash paid to Posada
$
On December 31, the capital balances and income ratios in Carla
Vista Company are as follows.
Partner
Capital Balance
Income Ratio
Trayer
$64,500
50%
Emig
44,500
30%
Posada
29,500
20%
Your answer is correct.
Journalize the withdrawal of Posada under each...
On December 31, the capital balances and income ratios in Pharoah Company are as follows. Capital Balance Income Ratio Partner Trayer Emig Posada $59,500 38,500 35,000 50% 30% 20% Journalize the withdrawal of Posada under each of the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not ind (1) Each of the continuing partners agrees to pay $17,200 in cash from personal funds to purchase Posada's ownership equity. Each receives 50% of Posada's equity. (2)...
5. When a new partner is admitted to a partnership, there should be a(n) a. increase in the total assets of the partnership. b. new capital account added to the ledger for the new partner. c. increase in the total owner's equity of the partnership. d. debit amount to the partner's capital account for the cash received by the current partner. 5. When a new partner is admitted to a partnership, there should be a(n) a. increase in the total...
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