Accounting, Chapters 14-26
27th Edition
ISBN: 9781337514095
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 12, Problem 12.2EX
To determine
It is that form of organization which is owned and managed by two or more persons who invest and share the
Forming a Partnership
While forming the partnership, the contribution of assets by partners are debited to the partnership assets account; whereas the liabilities of the partnerships are credited to the partnership’s liabilities account, and the net amount of the investments of partners are credited to the partners’ individual capital account.
To record: The
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Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship:
Hannah Freeman Proprietorship
Balance Sheet
June 1, 20Y3
Cash
$32,350
Accounts receivable
$60,800
Less: Allowance for doubtful accounts
3,600
57,200
Land
146,000
Equipment
$57,000
Less: Accumulated depreciation—equipment
34,900
22,100
Total assets
$257,650
Accounts payable
$18,100
Notes payable
53,250
Hannah Freeman, capital
186,300
Total liabilities and owner's equity
$257,650
Freeman obtained appraised values for the land and equipment as follows:
Land
$203,000
Equipment
17,200
An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $5,300.
Journalize the partnership's entry for Freeman’s investment. If an amount box does not require an entry, leave it blank.
4
Assume the following information just prior to the admission of new
partner I:
Assets
Cash
Accounts receivable
Partner
CH-
$ 5,000
43,000
G
H
7. New partner I contributes land with a fair value of $100,000.
Relative ownership interests after this transaction are:
Liabilities
Accounts payable
G, Capital
H, Capital
$48,000
Required: Prepare journal entries to record the following unrelated
scenarios:
5. New partner I purchases partners G's partnership interest for
$40,000.
6. New partner I receives a cash bonus of $2,000 and a one-tenth
ownership share, allocated equally from the partnership interests
of G and H.
Ownership
interest
20%
5%
75%
100%
Partners' Capital
$30,000
10,000
$ 8,000
40,000
$48,000
Recording partner's original investmentHannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship
freeman obtained appraised values for the land and equipment as follows:Land $320,000Equipment 34,800An analysis of the accounts receivable indicated that they allow ante for doubtful accounts should be increased to $9,500. Journalize the partnership's entry for Freeman’s investment
Chapter 12 Solutions
Accounting, Chapters 14-26
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 12.1APECh. 12 - Prob. 12.1BPECh. 12 - Prob. 12.2APECh. 12 - Prob. 12.2BPECh. 12 - Prob. 12.3APECh. 12 - Prob. 12.3BPECh. 12 - Prob. 12.4APECh. 12 - Prob. 12.4BPECh. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Prob. 12.5BPECh. 12 - Prob. 12.6APECh. 12 - Prob. 12.6BPECh. 12 - Revenue per employee Niles and Cohen, CPAs earned ...Ch. 12 - Prob. 12.7BPECh. 12 - Prob. 12.1EXCh. 12 - Prob. 12.2EXCh. 12 - Prob. 12.3EXCh. 12 - Prob. 12.4EXCh. 12 - Prob. 12.5EXCh. 12 - Prob. 12.6EXCh. 12 - Prob. 12.7EXCh. 12 - LLC net income and statement of members equity...Ch. 12 - Prob. 12.9EXCh. 12 - Prob. 12.10EXCh. 12 - Prob. 12.11EXCh. 12 - Prob. 12.12EXCh. 12 - Prob. 12.13EXCh. 12 - Prob. 12.14EXCh. 12 - Prob. 12.15EXCh. 12 - Prob. 12.16EXCh. 12 - Statement of members' equity, admitting new member...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Prob. 12.20EXCh. 12 - Prob. 12.21EXCh. 12 - Liquidating partnershipscapital deficiency...Ch. 12 - Prob. 12.23EXCh. 12 - Prob. 12.24EXCh. 12 - Prob. 12.25EXCh. 12 - Revenue per professional staff The accounting firm...Ch. 12 - Revenue per employee Superior Cleaning Services,...Ch. 12 - Prob. 12.1APRCh. 12 - Prob. 12.2APRCh. 12 - Prob. 12.3APRCh. 12 - Prob. 12.4APRCh. 12 - Prob. 12.5APRCh. 12 - Prob. 12.6APRCh. 12 - Prob. 12.1BPRCh. 12 - Prob. 12.2BPRCh. 12 - Prob. 12.3BPRCh. 12 - Prob. 12.4BPRCh. 12 - Prob. 12.5BPRCh. 12 - Statement of partnership liquidation On August 3,...Ch. 12 - Prob. 12.1CPCh. 12 - Prob. 12.3CPCh. 12 - Prob. 12.4CP
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