Rosa and Linda agreed to form a partnership on June 15, 2012 for the purpose of manufacturing and selling custom silver jewelry. Both are master crafters and have their own tools and equipment, which they will invest in the business. Rosa and Linda determined that their tools and equipment have fair market values of P90,000 and P120,000, respectively. They further resolved to invest sufficient cash such that each partner will have a beginning capital balance equal to P250,000. How much will be the total cash of the newly formed partnership?
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- Rosa and Linda agreed to form a
partnership on June 15, 2012 for the purpose of manufacturing and selling custom silver jewelry. Both are master crafters and have their own tools and equipment, which they will invest in the business. Rosa and Linda determined that their tools and equipment have fair market values of P90,000 and P120,000, respectively. They further resolved to invest sufficient cash such that each partner will have a beginning capital balance equal to P250,000. How much will be the total cash of the newly formed partnership?
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- Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O’Donnell invests a building worth $52,000 and equipment valued at $16,000 as well as $12,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 20 percent of the beginning capital balance for the year. O’Donnell will also have added to his capital account 15 percent of partnership income each year (without regard for the preceding interest figure) or $4,000, whichever is larger. All remaining income is credited to Reese. The partnership reported a net loss of $10,000 during the first year of its…Andoy and Bandol agreed to form a partnership on January 2, 2019 for the purpose of manufacturing and selling stainless kitchen wares. Both are master crafters and have their own tools and equipment, which they will invest in the business. Andoy and Bandol determine their tools and equipment to have fair values of Php180,000 and Php240,000 respectively. They further resolve to invest sufficient cash such that each partner will have a beginning capital balance of Php500,000. Required: Prepare journal entries to record the partners’ investment.Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2022, O’Donnell invests a building worth $54,000 and equipment valued at $20,000 as well as $16,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year. O’Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $5,000, whichever is larger. All remaining income is credited to Reese. Neither partner is allowed to withdraw funds from the partnership during 2022.…
- Kai and her very close friend Bigan formed a partnership on January 1,2015 with Kain contributing P16,000 cash while Bigan contributing equipment with a book value of P6,400 and a fair value of P4,800 and inventory items with a book value of P2,400 and a fair value of P3,200. During 2015, Bigan made additional investments of P1,600 on April 1 and P1,600 on June 1 and on September 1, he withdrew P4,000. Kai had no additional investments or withdrawals during the year. How much is Bigan's average capital balance?Jim Bond, a plumber, has been working for Fleming’s Plumbing Supplies for several years. Based on his hard work and the fact that he recently married Ivan Fleming’s daughter, Jim has been invited to enter into a partnership with Fleming. The new partnership will be called Fleming and Bond’s Plumbing Supplies. The terms of the partnership are as follows: a) Fleming will invest the assets of Fleming’s Plumbing Supplies, and the partnership will assume all liabilities. The market values of the office and store equipment are estimated to be $18,000 and $8,000, respectively. All other values reported on the balance sheet are reasonable approximations of market values. Fleming has no knowledge of any uncollectible accounts receivable. b) Bond will invest $50,000 cash. c) Fleming will draw a salary allowance of $50,000 per year, and Bond will receive $30,000. d) Each partner will receive 10% interest on the January 1 balance of his capital account. e) Profits or losses remaining after…Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2019, O’Donnell invests a building worth $126,000 and equipment valued at $132,000 as well as $52,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year. O’Donnell will also have added to his capital account 20 percent of partnership income each year (without regard for the preceding interest figure) or $7,000, whichever is larger. All remaining income is credited to Reese. Neither partner is allowed to withdraw funds from the partnership during…
- Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2019, O’Donnell invests a building worth $74,000 and equipment valued at $44,000 as well as $32,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O’Donnell to join this partnership, Reese draws up the following profit and loss agreement: O’Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year.O’Donnell will also have added to his capital account 10 percent of partnership income each year (without regard for the preceding interest figure) or $6,000, whichever is larger. All remaining income is credited to Reese.Neither partner is allowed to withdraw funds from the partnership during 2019.…Ranran, Sansan, and Tantan are forming a new partnership. The following are their contributions: • Ranran is to invest cash of P100,000 and stapling equipment originally costing P120,000 but has a second-had market value of P50,000. • Sansan is to invest cash of P 160,000. • Tantan, whose family is engaged in selling stapling equipment, is to contribute cash of P50,000, and a brand-new stapling equipment to be used by the partnership with a regular price of P 120,000 but which cost their family's busmess P100,000. • The partners agreed to share profits and loss equally.The capital balances upon formation are: a) Ranran - ₱220,000; Sansan - ₱160,000; Tantan - ₱220,000 b) Ranran - ₱150,000; Sansan - ₱160,000; Tantan - ₱170,000 c) Ranran - ₱150,000; Sansan - ₱160,000; Tantan - ₱220,000 d) Ranran - ₱176,666; Sansan - ₱176,666; Tantan - ₱176,668Ana, Bea and Carol decided to form a partnership contributing the following items. Ana is to invest her existing business in the partnership consisting of the following accounts; cash of P20,000; accounts receivable of P50,000; inventory P30,000; fixtures of P40,000; payables of P12,000. Bea on the other hand is to invest cash of P15,000 and a delivery truck costing P30,000 but is mortgaged with the bank for P20,000. The partners agree that the receivables will re have a 90% realizable value. The inventory would be valued at P20,000. P5,000 of the payables would be paid prior to the formation of the partnership. The delivery truck would have a 20% increase in its market value. The partnership will shoulder only 80% of the mortgage and Carol is to invest cash to be able to have a 40% interest in the partnership.How much cash should Carol invest in the newly formed partnership?A. 61,200 B. 138,000 C. 60,800 D. 102,000
- On 1 October 2020, Duane and Kevin, two Cryptocurrency advisory professionals, commenced a partnership. As Duane had contributed most of the working capital, the partnership agreement provided that Duane would receive 60% of the net partnership income. For the year ended 30 June 2021 the partnership returned net income of $120,000. This was after a payment of $10,000 in interest to Duane on $120,000 capital which he had contributed to the partnership. $40,000 of the net partnership income was derived from overseas. 1. Calculate the net income of each partner for the year ended 30 June 2021. 2. If Kevin had only been a resident of Australia since 1 January 2020, how would this affect the calculation of the net income of each partner? Please answer both subparts. I will really upvote. ThanksOn 1 October 2020, Duane and Kevin, two Cryptocurrency advisory professionals, commenced a partnership. As Duane had contributed most of the working capital, the partnership agreement provided that Duane would receive 60% of the net partnership income. For the year ended 30 June 2021 the partnership returned net income of $120,000. This was after a payment of $10,000 in interest to Duane on $120,000 capital which he had contributed to the partnership. $40,000 of the net partnership income was derived from overseas. 1. Calculate the net income of each partner for the year ended 30 June 2021. 2. If Kevin had only been a resident of Australia since 1 January 2020, how would this affect the calculation of the net income of each partner?Bill, Bob, and Bo, are partners in the Trendy Company, a retailer of inexpensive kids' wear. They share profits and losses in a 1:4:5 ratio and have decided to expand their business territory. They have agreed to admit Burt to the partnership for a cash Investment. Their capital balances are currently P60,000, P100,000, and P140,000, respectively. Assuming Burt contributes P80,000 for a 20% interest, the entry to record his investment in the partnership includes a: a. credit to Burt, capital for P76,000 b. debit to Bill, capital for P2,000 c. debit to Bob, capital for P8,000 d. credit to Bo, capital, for P10,000
