- CengageNOWv2 | Online teachin x+ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=falseeBookShow Me HowCalculatorLess: Accumulated depreciation-equipment39,00024,000Total assets$287,150Accounts payable$20,200Notes payable58,750Hannah Freeman, capital208,200Total liabilities and owner's equity$287,150Freeman obtained appraised values for the land and equipment as follows:Land$227,000Equipment18,700An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $5,800.Journalize the partnership's entry for Freeman's investment. If an amount box does not require an entry, leave it blank.Check My Work144&8. ageNOWv2 | Online teachin x+keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress%3falseеВookShow Me HowCalculatorHannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information isprovided by Freeman, sole proprietorship:Hannah Freeman ProprietorshipBalance SheetJune 1, 20Y3Cash$36,150Accounts receivable$68,000Less: Allowance for doubtful accounts4,00064,000Land163,000Equipment$63,000Less: Accumulated depreciation-equipment39,00024,000Total assets$287,150Accounts payable$20,200Notes payable58,750Hannah Freeman, capital208,200Total liabilities and owner's equity$287,150Freeman obtained appraised values for the land and equipment as follows:Land$227,000Equipment18,700Check My WorkNext10:5- ) all10/2insertprt sc411+ backspc9%57\8.RTYUHK

Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 Cash $36,150 Accounts receivable $68,000 Less: Allowance for doubtful accounts 4,000 64,000 Land 163,000 Equipment $63,000 Less: Accumulated depreciation-equipment 39,000 24,000 Total assets $287,150 Accounts payable $20,200 Notes payable 58,750 Hannah Freeman, capital 208,200 Total liabilities and owner's equity $287,150 Freeman obtained appraised values for the land and equipment as follows: Land $227,000 Equipment 18,700

Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 Cash $36,150 Accounts receivable $68,000 Less: Allowance for doubtful accounts 4,000 64,000 Land 163,000 Equipment $63,000 Less: Accumulated depreciation-equipment 39,000 24,000 Total assets $287,150 Accounts payable $20,200 Notes payable 58,750 Hannah Freeman, capital 208,200 Total liabilities and owner's equity $287,150 Freeman obtained appraised values for the land and equipment as follows: Land $227,000 Equipment 18,700

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section23.2: Distribution Of Net Income And Owners’ Equity Statements

Problem 1WT

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Problem IAriel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business. The balance sheet of the two are shown below together with their agreement prior to formation. Ariel BeautyCash 113 126Accounts Receivables 200 100Inventories 50 50Equipment 80 0Furniture 0 30Prepayments 5 15TOTAL 448 321 Accounts Payable 75 95Capital 373…
Q8 ABC Bakers is a partnership concern owned and operated by Mr. X and Mr. Y. Identify the option that reflect the correct treatment of accounting transaction in the books of ABC Bakers? Select one: a. Mr. X borrowed Mr. Y money from a partnership’s bank account to buy a car for personal use: Debit vehicle; Credit Bank b. Mr. Y purchased an oven for the bakery using his personal credit card: Debit Oven (Asset); Credit Equity Capital c. Mr. X paid his house rent from the business bank account. Debit Rent expense; Credit Bank B d. Mr. Y paid out of bu
Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business.The balance sheet of the two are shown below together with their agreement prior to formation.ArielBeautyCash113126Accounts Receivables200100Inventories5050Equipment800Furniture030Prepayments515TOTAL448321Accounts Payable7595Capital373226TOTAL448321Partners' agreements:Receivables are 97% collectibleAriel's inventories fair values is at P49 while P20 of Beauty's Inventories were damaged and are only 30% recoverable.The equipment is overdepreciated by P5 and the furniture's value will decrease by P4.P3 of Ariel’s prepayments were already exhausted while Beauty has unrecorded liability of P3.Cindy will contribute sufficient cash to give her 20% interest1. How much capital will be credited to Ariel?
Ariel, Beauty and Cindy decided to form Disprin Partnership with 2:2:1 profit sharing. Both Ariel and Beauty have existing business.The balance sheet of the two are shown below together with their agreement prior to formation.ArielBeautyCash113126Accounts Receivables200100Inventories5050Equipment800Furniture030Prepayments515TOTAL448321Accounts Payable7595Capital373226TOTAL448321Partners' agreements:Receivables are 97% collectibleAriel's inventories fair values is at P49 while P20 of Beauty's Inventories were damaged and are only 30% recoverable.The equipment is overdepreciated by P5 and the furniture's value will decrease by P4.P3 of Ariel’s prepayments were already exhausted while Beauty has unrecorded liability of P3.Cindy will contribute sufficient cash to give her 20% interest1. How much capital will be credited to Ariel?2. How much capital will be credited to Beauty?3. How much capital will be credited to Cindy?4. How much is the total assets of the newly-formed partnership?
On March 1, 2020, EE and FF decided to combine their business and form a partnership. Their balance sheets onMarch 1 before adjustments showed the following: 1. Compute the net (debit)/credit adjustment for EE anf FF. EE FF EE FFA. 28,700 ; 28,200 C. (8,700) ; 1,800B. (28,700) ; (28,200) D. 8,700 ; (1,800) 2. Compute the total assets after the formation.A. 1,607,650 C. 1,579,850B. 1,570,850 D. 1,568,750 3. If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship, what is the capital of FF after the formation?A. 400,000 C. 369,740B. 391,700 D. 391,700 4. If If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship with EE’s capital to be used as a basis, what is the capital of FF after the formation?A. 400,000 C. 369,740B. 391,700 D. 391,700
subject : Accounting At the start of 2022, Betty Veronica is considering adding a partner to her business. She envisions the new partner taking the lead in generating sales of both services and merchandise for Lincoln Solutions. B. Veronica’s equity in Lincoln Solutions as of January 1, 2022 is $80,360 Required a. B. Veronica is evaluating whether the prospective partner should be an equal partner with respect to capital investment and profit sharing (1:1) or whether the agreement should be 4:1 with Veronica retaining four fifths interest with the rights to four-fifths of the net income or loss. What factors should she consider in deciding which partnership agreement to offer? b. Prepare the January 1, 2022, journal entry(ies) necessary to admit a new partner to Lincoln Solutions through the purchase of a partnership interest for each of the following two separate cases: 1. 1:1 sharing agreement and 2. 4:1 sharing agreement. c. Prepare the January 1, 2022, journal entry(ies) required…
Required: 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000. After Pedro’s admission, the profitand loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What isthe capital balance of Pedro after the first year?
TOPIC: LUMPSUM LIDUATION (PARTNERSHIP) SHOW YOUR COMPUTATION, 1. Jack, Jill, Dick and Jane are partners with capitals of P 22,000, P 20,600, P 27,400 and P 18,000 respectively. Jack has a loan balance of P 4,000. Profits and losses are shared 40%; 30%; 20%; 10% by Jack, Jill, Dick and Jane respectively. Assuming assets were sold and liabilities paid and the balance of cash showed P 24,000. Prepare a schedule showing how the P 24,000 will be distributed to the partners. 2. The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019. Profits and losses are shared 50%; 30%; and 20%, respectively. Guess, Drawing (debit balance) P (32,000) Levis, Drawing (debit balance) (12,000) Jag, Loan 40,000 Guess, Capital 164,000 Jag, Capital 134,000 Levis, Capital 144,000 Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities. On January 2019, the partnership was liquidated, and Jag…
Show Your Solutions 1) The following condensed Balance Sheet was prepared for Bi, Na, Ta partnership on March 31,200B: Cash P 30,000 Liabilities P 60,000 Other Assets P 190,000 Bi, Capital P 44,000 Na, Capital P 66,000 Ta, Capital P 50,000 P 220,000 P 220,000 The other assets were sold for P50,000. Profits are shared 4;4;2, for Bi, Na, and Ta, respectively. Bi is insolvent . The amount of cash received by Na was: 2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. How much was the loss on realization? 3) After realization…
PROBLEM 1On June 30, 20x8 A, the sole proprietor of A Inc, expandsthe company and establishes a partnership with B and C. Thepartners plan to share profits and losses as follows: A, 50%;B, 25% and C 25%. They also agree that the beginning capitalbalances of partnership will reflect this same relationship.A asked B to join the partnership because his many businesscontacts are expected to be valuable during the expansion. B iscontributing P40,000 and a building that has an original cost ofP520,000, book value of P420,000, tax assessment of P310,000 andfair value of P370,000. The building is subject to a P242,000mortgage that the partnership will assume. C is contributingP66,000 and marketable securities costing P252,000 but arecurrently worth P345,000.A's investment in the partnership is his business. He plansto pay off the notes with his personal assets. The other partnershave agreed that the partnership will assume the accounts payable.The balance sheet for the A Inc follows:…
X and Y PartnershipX and Y are in partnership and divide profits and losses in the ratio of 2:1 respectively. Z was admittedas a partner on 1 March 2020. The new profit-sharing ratio between X, Y and Z will be 4:2:1respectively.X AND Y PARTNERSHIPSTATEMENT OF FINANCIAL POSITION AT 29 FEBRUARY 2020RASSETSNon-current assetsProperty, plant and equipment 60 000COFA121 – Take-home Test 3 Paper S2 2020| V1.0 Page 6 of 11Current assets 180 000Inventories 88 000Trade and other receivables 52 000Cash and cash equivalents 40 000Total assets 240 000EQUITY AND LIABILITIESCapital & Reserves 200 000Capital X 127 500Capital Y 67 500General Reserve 5 000Current liabilitiesTrade and other payables 40 000Total equity and liabilities 240 000Additional information:For the purpose of the change in ownership the following agreement was reached:1. Provision would be made for credit losses at 10% of the outstanding (carrying) amount of theaccounts receivable.2. Inventories would be valued at R90 000.3.…
The following balance sheet os for a local partnership in which the partners have become very unhappy with each other. To avoid further conflict, they have decided to cease operations and sell all assets. Cash 40,000 Liabilities 30,000 Land 130,000 Michael, capital 80,000 Building 120,000 Fernando, capital 30,000 Alvin, capital 60,000 JL, capital 90,000 Total 290,000 290,000 Assume that profits and losses are allocated on a 1:3:4:2 basis, repectively. How much money must be received from selling the land and building to assure that all partners are given cash?