On April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Comeau $286,100 cash Contribution Profit sharing Cash withdrawal March 20, 2023 $174,700 salary allowance Lavoi $218,000 land $132,500 building 5% of original 5% of original capital investments capital investments 40% of remaining 60% of remaining $129,800 Net Income during the year was $560,000 and was in the Income Summary account. On April 1, 2023 Travis Roberts invested $146,300 and was admitted to the partnership for a 20% interest in equity. Required: 1. Prepare journal entries for the following dates. a. April 1, 2022
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- On March 1, 2018, X and Y formed a partnership. The partners contributed the following:X YCash P500,000 P400,000Accounts Receivable 300,000 200,000Allowance for doubtful accounts 50,000 20,000Inventory 150,000 100,000Equipment 500,000 200,000 Accumulated depreciation 100,000 25,000Accounts Payable 50,000 400,000Note Payable 200,000 The partners agree on the following:a. P10,000 of the accounts receivable of X is to be written-off.b. An allowance for doubtful accounts of 15% is to be established on the remaining receivables of Xand Y.c. The inventory of Y is to be valued at P140,000.d. The equipment of X is under depreciated by P20,000 and the equipment of Y has a fair value ofP190,000.e. The note of X is dated December 1, 2017 and is subject to a 12% interest . Interest had not yetbeen accrued.f. The partners agree on a 2:1 profit and loss ratio.g. The partners agree to bring their capital balance proportionate to their profit and loss ratio.If Y's Capital is to be used as basis, how…On April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Comeau Lavoi Contribution $304,000 cash $202,000 land $144,900 building Profit sharing $184,800 salary allowance 5% of original capital investments 5% of original capital investments 40% of remaining 60% of remaining Cash withdrawal March 20, 2023 $129,800 Net Income during the year was $509,600 and was in the Income Summary account.On April 1, 2023 Travis Roberts invested $139,400 and was admitted to the partnership for a 20% interest in equity.Required:1. Prepare journal entries for the following dates.a. April 1, 202210. As of July 1, 2020, Somine and Tamayo decided to form a partnership. Their balance sheets on this date are: Tamayo P37,500 225,000 202,500 270,000 P705,000 P735,000 P135,000 P240,000 Somine P15,000 540,000 Cash Accounts receivable Merchandise inventory Machinery and equipment 150,000 Total Accounts payable Somine, capital Tamayo, capital 570,000 495,000 P705,000 P735,000 Total The partners agreed that the machinery and equipment of Somine is under- depreciated by P15,000 and that of Tamayo by P45,000. Allowance for doubtful accounts is to be set up amounting to P120,000 for Somine and P45,000 for Tamayo. The partnership agreement provides for a profit and loss ratio and capital interest of 60% to Somine and 40% to Tamayo. How much cash must Somine invest to bring the partners' capital balances proportionate to their profit and loss ratio? a. P142,500 b. P52,500 C. P172,500 d. P102,500
- Q7 Shaun and Morgan are partners in a firm sharing profits and losses equally. On 1st April, 2014, the capitals of the partners were Shaun $ 4,00,000 and Morgan $ 3,00,000. The Profit and Loss Appropriation Account of the firm showed a net profit of $ 7,50,000 for the year ended 31st March, 2015. The terms of Partnership Deed provided the following: Transfer 10% of distributable profits to reserve fund. Interest on Capitals @ 6% per annum. Interest on drawings 6% per annum. Drawings being Shaun $ 80,000 and Morgan $ 60,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March 2015.The following are balances of a partnership between Shoe and Lace as at 2021 December 31: DR CR Capital on 2021 January 01: S S Shoe 30 000 Lace 30 000 Current Accounts on 2021 January 01: Shoe 1 500 Lace Drawings during the year were: Shoe Lace Land and building Equipment Cash at bank Bank loan 90 000 Electricity Office salaries Advertising Bad debts Provision for bad debts 700 Debtors Creditors 9 500 Provision for depreciation: Equipment 2 000 Stock on 2021 December 31 Gross profit for the year 150 000 Additional information: i. Provision for bad debts is to be increased by $50. ii. Amount for advertising included payment of $120 for 2022. iii. Electricity bill of $145 is due. iv. Equipment is to be depreciated at 20% per annum. v. Interest on capital is allowed at 20% per annum. vi. Interest on drawings is 5% per annum. vii. Profits and losses are to be shared between Shoe and Lace in the ratio 2:3. A. Prepare Profit and Loss and Appropriation Account for year ended 2021 December…Sofia contributed the following business assets to S&S Partnership on March 3, 2022: FMV $ 45,000 $-0- $ 100,000 What is the basis in the equipment and the accounts receivable to S&S? Equipment Accounts receivable Multiple Choice Basis $ 75,000 Equipment $45,000; Accounts Receivable $100,000 Equipment $0; Accounts Receivable $0 Equipment $45,000; Accounts Receivable $0 Equipment $75,000; Accounts Receivable $0 Date purchased by Sofia 07/01/21 Various
- E13-2 Accounting for partner investments [10 min] Nan Ferdinand has been operating a student apartment-locator service as a proprietorship. She and Misti Morris have decided to form a partnership. Ferdinand's investment consists of cash, $6000; accounts receivable, $13000; office furniture, $15 000; a building, $51000; and a loan payable to the bank, $22000. To determine Nan's equity in the partnership, she and Misti hire an independent valuer. He values all the assets and liabilities at their carrying amount except the building, which has a current market value of $96000. Also, there are additional accounts payable of $5 000 that Nan will contribute. Misti will contribute cash equal to Nan's equity in the partnership. Requirements 1 Journalise the entry on the partnership books to record Nan's investment. 2 Journalise the entry on the partnership books to record Misti's investment.1.A and B formed a partnership. The following are their contributions: A B Cash 500,000 Accounts receivable 100,000 Building Total 700,000 600,000 700,000 A, capital B, capital Total 600,000 700,000 600,000 700,000 Additional information: The accounts receivable includes a P20,000 account that is deemed uncollectible. The building is over-depreciated by P50,000. The building has an unpaid mortgage P100,000, which is assumed by the partnership. Requirement: Provide the journal entry to record the contributions of the partners in the partnership books.Show the solution in good accounting form On March 1, 2018, X and Y formed a partnership. The partners contributed the following: X Y Cash P500,000 P400,000 Accounts Receivable 300,000 200,000 Allowance for doubtful accounts50,000 20,000 Inventory 150,000 100,000 Equipment 500,000 200,000 Accumulated depreciation 100,000 25,000 Accounts Payable 50,000 400,000 Note Payable 200,00 The partners agree on the following: a. P10,000 of the accounts receivable of X is to be written-off. b. An allowance for doubtful accounts of 15% is to be established on the remaining receivatbies of X and Y. C. The inventory of Y is to be valued at P140,000. D. The equipment of X is under depreciated by P20,000 and the equipment ofY has a fair value of P190,000. E.…
- Items 34 and 35 are based on the following information: On January 2,2010, Jason and Melissa formed a partnership by contributing the following assets: Cash Accounts Receivable Merchandise Inventory Land Building Jason P ? 80,000 100,000 Melissa 34. On January 2, 2010, Melissa, Capital amounts to a. P440,000 b. P600,000 P 380,000 240,000 The Land invested by Melissa is subject to mortgage loan of P160,000, which is to be assumed by the partnership. The accounts receivable invested by Jayson are believed to be only 90% collectible. d. P1,040,000 35. Assuming that Jayson is to contribute enough cash to bring his capital equal to that of Melissa, required cash contribution of Jayson is a. P268,000 b. P420,000 d. P600,000 c. P760,000 c. P440,000Show the solution in good accounting form On March 1, 2018, X and Y formed a partnership. The partners contributed the following: X Y Cash P500,000 P400,000 Accounts Receivable 300,000 200,000 Allowance for doubtful accounts50,000 20,000 Inventory 150,000 100,000 Equipment 500,000 200,000 Accumulated depreciation 100,000 25,000 Accounts Payable 50,000 400,000 Note Payable 200,00 The partners agree on the following: a. P10,000 of the accounts receivable of X is to be written-off. b. An allowance for doubtful accounts of 15% is to be established on the remaining receivatbies of X and Y. C. The inventory of Y is to be valued at P140,000. D. The equipment of X is under depreciated by P20,000 and the equipment ofY has a fair value of P190,000. E.…Question #2: Toto profit 56,000 The ABCD Partnership has the following balance sheet at January 1, 2012, prior to the admission of new partner, Eden. Cash and current assets Land Building and equipment Total $ 39,000 234,000 130,000 $ 403,000 Liabilities Adams, capital Barnes, capital Cordas, capital Davis, capital Total $ 52,000 26,000 52,000 117,000 156,000 $ 403,000 Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Eden made his investment, what were the individual capital balances?