The following statement of financial position is presented for the partnership of David Faithful, Solomon Wise, and Josias Honest who share profits and losses in the ratio of 5:3:2 respectively: P140,000 280,000 160,000 20,000 P600,000 P60,000 540,000 Cash Liabilities David, Capital Solomon, Capital Josias, Capital Total Other Assets Total P600,000
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- The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.The condensed balance sheet and profit – sharing ratio of the partnership of Wenda, Wendy, and Wilma are presented below: Cash P 22,500.00 Liabilities P52,500.00 Due from Wanda 7,500.00 Due to Wilma 10,000.00 Other assets 205,000.00 Wanda, cap’l (4) 75,000.00 Wendy, cap’l (3) 50,000.00 Wilma, cap’l (3) 47,500.00 Total assets P235,000.00 Total equities P235,000.00 21. The partners agreed to liquidate and they sold all the Other assets for P150,000.00. How much of the available cash should go to Wanda? a. P45,500.00 b. P75,000.00 c. P42,500.00 d. P53,000.00 22. Refer to No. 21 above, how much will be received by Wendy in the partnership liquidation a. P41,000.00 b. P74,000.00 c. P33,500.00 d. P66,600.00
- The following condensed balance sheet is presented for the partnership of Nick, Pick, andNick, who share profits and losses in the ratio 4:3:3, respectively: Cash P 45,000 Accounts payable P 105,000 Other assets 415,000 Rick, loan 15,000 Nick, loan 10,000 Nick, capital 155,000 Pick, capital 100,000 Rick, capital 95,000 P 470,000 P 470,000 Questions: 1. Assume that the assets and liabilities are fairly valued on the balance sheet and that thepartnership decides to admit Tick as a partner, with a 20% interest. No goodwill or bonusis to be recorded. How much should…The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 56,000 Liabilities $ 45,000 Other assets 169,000 Miller, capital 81,000 Tyson, capital 81,000 Watson, capital 18,000 Total assets $ 225,000 Total liabilities and capital $ 225,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?A partnership had the following condensed balance sheet:AssetsLiabilities and CapitalCash P15,000Liabilities P45,000Non-cash assets 195,000 Aron, capital(50%) 90,000Charlie, loan 15,000Ben, capital(30%) 30,000Charlie, capital(20%) 60,000 The percentages in parenthesis after the partners’ capital balances represent their respective interests in profits and losses. The partners agree to admit Dale as a member of the firm under the following independent situations. From the following, prepare the journal entries needed to record the admission of Dave and the capitalbalances of the partners in the new partnership. Situation 1. Dave purchases a ¼ interest in the firm. One-fourth of each partner’s capital is to be transferred to the new partner. Dave pays the partners P60,000, which is divided between them in proportion to the equities given up. The assets of the partnership are to be adjusted.
- On December 31, 2030, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3:Current Assets P2,600,000 , Total Liabilities P 600,000Noncurrent Assets 4,000,000 A, Capital 2,800,000B, Capital 1,400,000C, Capital 1,800,000 On January 1, 2031, D is admitted to the partnership by investing P2,000,000 to the partnership for 20% capital interest. If all the assets of the existing partnership are properly valued, what is the capital balance of C after the admission of D?a. P1,920,000b. P1,800,000c. P1,620,000d. P2,400,000The following is the condensed balance sheet of the partnership Jo, Li and Bi who share profits and losses in the ratio of 4:3:3. Cash P 180,000 Accounts, payable P 420,000 Other assets 1,660,000 Bi, Loan 60,000 Jo, receivable 40,000 Jo, Capital 620,000 Li, Capital 400,000 __ Bi, Capital 380,000 Total P 1,880,000 Total P1,880,000 Assume that the assets and liabilities are fairly valued on the balance Sheet and the partnership decides to admit Mac as a new partner, with a 20% interest. No goodwill or bonus is to be recorded. How much Mac should contribute in…2. The following condensed balance sheet is presented for the partnership of Joseph and Emman, whoshare profits and losses in the ratio of 60:40, respectively:Other Assets P500,000Emman, loan 20,000Total P520,000Accounts Payable P120,000Joseph, Capital 220,000Emman, Capital 180,000Total P520,000The partners decided to liquidate the partnership. If the assets are sold for P345,000, what amount ofthe available cash should be distributed to Emman? Show your solution.
- The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 50,000 Liabilities $ 42,000 Other assets 150,000 Miller, capital 69,000 Tyson, capital 69,000 Watson, capital 20,000 Total assets $ 200,000 Total liabilities and capital $ 200,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.A summary balance sheet for the Lemon, Mango, and Nobb partnership appears below. Lemon, Mango, and Nobb share profits and losses in a ratio of 2:3:5, respectively. Assets Cash $ 100,000 Marketable securities 200,000 Inventory 125,000 Land 100,000 Building-net 500,000 Total assets $1,025,000 Equities Lemon, capital $ 425,000 Mango, capital 400,000 Nobb, capital 200,000 Total equities $1,025,000 The partners agree to admit Oran for a one-fifth interest. The fair market value of partnership land is appraised at…The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 63,000 Liabilities $ 53,000 Other assets 160,000 Miller, capital 75,000 Tyson, capital 75,000 Watson, capital 20,000 Total assets $ 223,000 Total liabilities and capital $ 223,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. Miller Tyson Watson Safe payments b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? other assets must be sold (for an amount less than) or (for an amount over)