Make-up assignmentPartnership DissolutionInstruction: Prepare the answers and solutions in written form using a clean paper (e.g. Yellow pad, bondpaper, notebook etc.) and submit a snapshot in CANVAS.Problem 1. A and B are partners in an electrical repair business. Their respective capital balances areP90,000 and P50,000, and they share profits or losses equally. Because the partners are confronted withpersonal financial problems, they decided to admit a new partner to the partnership. After an extensiveinterviewing process, they elect to admit C into the partnership.Required: Prepare the journal entry to record the admission of C into the partnership and determinecapital balances of A, B and C under each of the following condition:1. Cacquires one-fourth interest of A's capital interest by paying 30,000 directly to him.2. Cacquires one-fifth interest of each A and B capital interest. A receives P25,000 and B receivesP15,000 directly from C.3. Cacquires a one-fifth interest for a P60,000 cash investment in the partnership. Total capitalafter the admission is to be P200,000.4. Cinvests P40,000 for a one-fifth interest in partnership capital, goodwill/asset revaluation to theold partners is to be recorded. Problem 2. On January 2, 2019, the capital balances and profit and loss ratio of A, B and C are as follows:PartnerCapitalProfit and loss ratioА10,00050%В15,00030%20,00020%On April 30, 2019, A withdraws from the partnership. The net income of the partnership for the fourmonths ended April 30, 2019 is P140,000. It is agreed that the inventory costing P5,000 has a marketvalue of P7,000 on April 30, 2019.Required: Prepare the journal entries to record retirement and determine capital balances afterretirement in each of the independent assumption:a. Assume that A agrees to accept payment from partnership equal to his interest.b. Assume that A agrees to accept payment from the partnership amounting to P19,500, using thebonus method. It is also agreed that the revaluation of inventory will be recorded.c. Assume that A agrees to accept payment from the partnership amounting to P17,000, using theasset revaluation method.

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Answered: Make-up assignment Partnership…

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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Instructions: Please answer it with complete solution. Thank you so much!! Rachelle, Patrick, and Lorreyn formed the RPL Professional Partnership on April 1, 20X2, by contributing capital. They agreed that Lorreyn would receive P20,000 as manager of the firm, and the remainder will be divided according to the profit ratio of 34%, 44%, 22%, respectively. At the end of the month, the company had a net loss of P900,000. Discuss how the loss shall be distributed in no more than five (5) sentences.
I did parts 1,2(on the excel it is shown as a b c ) already, and have attached them.. i need help with 3 and 4.. lemon and salt entered into a partnership to provide supply chain management and logistic services in the san francisco region of California. In their agreed Articles of Partnership, the partners acknowledged the following: Sharing of profits and losses: Compensate each partner $125 per hour for their billable hourly consulting work performed. lemon receives an additional $3,000 monthly as the partnership’s Chief Operating Officer (COO); salt receives an additional $2,500 monthly as the partnership’s Chief Technology Officer (CTO), Any remaining profits or losses are divided equally between the partners. Each partner is permitted but not required to withdraw no more than $800 per month from the partnership and such withdrawals will be accounted for as direct reductions of the withdrawing partner’s capital balance They will begin their partnership with equal…
Can you please show the solution in good accounting form (preferrably in an excel) where it also shows what happens to every partners while solving for the requirement? Thank you so much for your help. It is appreciated. PROBLEM: John and Paul are partners who share profits and losses in the ratio of 3:2 respectively. Their salaries were: John’s salary $180,000 Paul’s salary $140,000. The partners are paid interest on their average capital balances where they received interest of: John $30,000 Paul $15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If John received $280,000 from partnership income, what was the total partnership income?
Erin Carson, Megyn Delaney, and Caitlin Erikson form a partnership as a first step in creating a business. Carson invests most of the capital but does not plan to be actively involved in the day-to-day operations. Delaney has had some experience and is expected to do a majority of the daily work. Erikson has been in this line of business for some time and has many connections. Therefore, she will devote a majority of her time to getting new clients. Required:Write a memo to these three partners suggesting at least two different ways in which the profits of the partnership can be allocated each year in order to be fair to all parties.
Nancy Freeley has been operating an apartment-locator service as a sole proprietorship. She and Melissa Marcellus have decided to form a partnership. Freeley's contribution consists of Cash, $6,000; Accounts Receivable, $12,000; Furniture, $13,000; Building (net), $53,000; and Notes Payable, $17,000. To determine Freeley's equity in the partnership, she and Marcellus hire an independent appraiser. The appraiser values all the assets and liabilities at their book value, except the building, which has a current market value of $100,000. Also, there are additional Accounts Payable of $3,000 that Freeley will contribute. Marcellus will contribute cash equal to Freeley's equity in the partnership. Requirements 1. Journalize the entry on the partnership books to record Freeley's contribution. 2. Journalize the entry on the partnership books to record Marcellus's contribution.
Can you please show the solution in good accounting form (preferrably in an excel) where it also shows what happens to every partners while solving for the requirement? Thank you so much for your help. It is appreciated. PROBLEM: Gerald, Julia and Bea are partners who decided to terminate their partnership due to misunderstanding. Total assets of the partnership is $480,000 including cash of $30,000. Capital balances of the partners were as follows: Gerald $150,000 Julia $175,000 Bea $67,500. Unpaid liabilities amounted to $87,500. Assets with a book value of $175,000 were sold for $125,000 and the cash was distributed. The P/L ratio is 5:3:2 What amount must the remaining assets be sold in order for Julia to receive $197,500 after liquidation?
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 $56,000 and $73,000, 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 to the partnership at a 30% interest for a purchase price of $35,000. a. Determine the recipient and amount of the partner bonus.$ b. Provide the journal entry to admit Solano into the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank. c. Why would a bonus be paid in this situation? Apparently, Jenkins and Tanner value offered by…
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 $59,000 and $77,000, 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 to the partnership at a 30% interest for a purchase price of $37,000. a. Determine the recipient and amount of the partner bonus. $fill in the blank 895c96fe0fa601a_1 b. Provide the journal entry to admit Solano into the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank. fill in the blank 3a9b65fd4f99071_2 fill in the blank 3a9b65fd4f99071_3 fill in the blank 3a9b65fd4f99071_5 fill in the…
Thomas Richey operates a small shop that sells fishing equipment. His postclosing trial balance on December 31, 20X1, is shown below. Richey plans to enter into a partnership with Kathryn Price, effective January 1, 20X2. Profits and losses will be shared equally. Richey is to transfer all assets and liabilities of his store to the partnership after revaluation as agreed. Price will invest cash equal to Richey’s investment after revaluation. The agreed values are Accounts Receivable (net), $58,000; Merchandise Inventory, $199,600; and Furniture and Equipment, $49,200. The partnership will operate as Richey and Price Angler’s Outpost. Richey's Tackle Center Postclosing Trial Balance December 31, 20X1 Account Name Debit Credit Cash $19,000 Accounts Receivable 65,600 Allowance for Doubtful Accounts $10,000 Merchandise Inventory 180,000 Furniture and Equipment 116,400 Accumulated Depreciation 92,000 Accounts Payable…
A & B approach C about forming a general partnership. A & B will each contribute $10,000 cash as start-up funds. C is to contribute no cash but instead work full-time in the business. A & B will work only part-time in the business. A, B, & C will share profits equally. C believes this is a great opportunity for him as he has no investment to risk by going into business with A & C. Is he correct?
Admission by Investment of Assets Rizal Meds is a medical partnership of Dr. John Pete Sarabla and Dr. Angeles De Guzman, who share profits and losses in a 2:3 ratio. Dr. Elizabeth Salvador has been asked to join the partnership. Prior to admitting Salvador, the assets of Rizal Meds were revalued to reflect their current market values. The revaluation resulted in medical equipment being increased by P35,000 Prior to the revaluation, the equity balances for Sarabia and De Guzman were P201,000 and P289,000, respectively. Required: 1 Prepare the journal entry for the asset revaluation 2. Prepare the journal entry to record the admission under the following independent situations: a.Salvador invested P285,000 for a 30% interest in Rizal Meds b. Salvador invested P155,000 for a 25% interest in Rizal Meds.
1. Nita and Bona, entrepreneurs, agreed to invest cash to put up a business selling signature bags. They agreed to share profits based on the legal provision. The following are the ledger postings for 2019: (see attached image) Direction: a) In chronological order, describe the transaction that took place. b) From the above postings, determine the agreements contained in the Articles of Co-Partnership regarding required contribution of each partner, allowable withdrawals, and profit sharing ratio. c) Give the last two entries (drawings and profit share). d) Prepare a statement of partner's equity for 2019.

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