The Morrel & Knoz partnership has the following balances on June 30, 2024: E (Click the icon to view the balances.) Morrel and Knoz share profits 1:1, respectively. Morrel and Knoz decide to liquidate the partnership. Journalize the sale of the non-cash assets for $9,000, the payment of the liabilities, and the payment to the partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journalize the sale of the non-cash assets for $9,000. Data table Date Accounts and Explanation Debit Credit 2024 Morrel and Knoz Jun. 30 Balance Sheet June 30, 2024 Assets Liabilities Cash 18,000 Accounts Payable 18,00 Non-cash Assets 15,000 Partners' Equity Morrel, Capital 6,50 8,50 Knoz, Capital Total Partners' Equity 15,00 33,000 33,00 Total Assets Total Liabilities and Partners' Equity Print Done

The Morrel & Knoz partnership has the following balances on June 30, 2024: E (Click the icon to view the balances.) Morrel and Knoz share profits 1:1, respectively. Morrel and Knoz decide to liquidate the partnership. Journalize the sale of the non-cash assets for $9,000, the payment of the liabilities, and the payment to the partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journalize the sale of the non-cash assets for $9,000. Data table Date Accounts and Explanation Debit Credit 2024 Morrel and Knoz Jun. 30 Balance Sheet June 30, 2024 Assets Liabilities Cash 18,000 Accounts Payable 18,00 Non-cash Assets 15,000 Partners' Equity Morrel, Capital 6,50 8,50 Knoz, Capital Total Partners' Equity 15,00 33,000 33,00 Total Assets Total Liabilities and Partners' Equity Print Done

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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.
Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.
On February 3, 2016 Sam Singh invested $90,000 cash for a 1/3 interest in a newly formed partnership. Prepare the journal entry to record the transaction.
On December 31, 2020, the accounting records of the Friends Partnership included the following information: Raflyn, drawing (debit balance) P 120,000 Jane, drawing (debit balance) Pablo, loan Raflyn, capital Jane, capital Pablo, capital 45,000 150,000 615,000 502,500 540,000 Total assets amounted to P2,392,500, including P262,500 cash, and liabilities totaled P750,000. The partnership was liquidated on December 31, 2020, and Jane received P416,250 cash pursuant to the liquidation. Raflyn, Jane, and Pablo share net income and losses in a 5:3:2 ratio, respectively. Compute for the total loss on realization.
Prepare separate journal entries to record the transfer of each proprietorship’s assets and liabilities to the partnership. Further, it is agreed that Sorensen will invest an additional $5,100 in cash, and Lucas will invest an additional $19.400 in cash. Journalize the additional cash investment by each partner. Prepare a classified balance sheet for the partnership on January 1, 2022.
On December 31, 2024, Denis and Gamber agree to combine their sole proprietorships into a partnership. Their balance sheets on December 31 are shown as follows: (Click the icon to view the balance sheets.) Read the requirements. ..... Requirement 1. Journalize the contributions of Denis and Gamber to the partnership. (Record debits first, then, credits. Select explanations on the last line of the journal entry table.) Journalize the contribution of Denis. Date Accounts and Explanation Debit Credit Data table Dec. 31 Denis's Business Gamber's Business Current Current Market Book Value Market Value Book Value Value Assets Cash 17,000 $ 17,000 $ 5,000 $ 5,000 Accounts Receivable 27,000 25,000 8,000 6,000 Merchandise Inventory 57,000 51,000 32,000 32,000 122,000 104,000 52,000 56,000 Plant Assets, Net 223,000 $ 197,000 $ 97,000 $ 99,000 Total Assets Requirements Liabilities and Owner's Equity Accounts Payable 31,000 $ 31,000 $ 10,000 $ 10,000 Other Accrued Payables 11,000 11,000 1.…
G. Bench, Mark, Spencer, and Lee are partners, sharing earnings in the ratio of 3:4:6:8, respectively. The balances of their capital accounts on December 31, 2019 are as follows: Bench - P 1,000 Mark - P 25,000 Spencer - P 25,000 Lee - P 9,000 The partners decide to liquidate, and they accordingly convert the non-cash assets into P 23,200 of cash. After paying the liabilities amounting to P 3,000, they have P 22,200 cash to divide. Assume that a debit balance of any partners' capital is uncollectible. 1. How much is the cash balance before realization? 2. How much is the share of Bench in the loss upon conversion of the non-cash assets into cash?