FUND OF ACCT PRIN(LOOSE-LEAF)+ACCESS
25th Edition
ISBN: 9781264753277
Author: Wild
Publisher: MCG
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Chapter 12, Problem 8QS
To determine
Introduction:
To Prepare: The journal entry for the admission of Partner K.
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Exercise 2: Admission by Contributing Capital to Partnership Directly
Dennis is being admitted into the partnership of Danilo, Romeo and Sanros. As of the date
of admission, the capital balances and share in net income of the three partners are as follows:
Capital Balance
P30,000
P/L Ratio
Danilo
30%
Romeo
60,000
50
Sanros
10,000
20
Make the entries incidental to the admission of Dennis who invests P30,000 for:
a. 1/5 interest in the partnership with capital credit equal to his investment.
b. 1/3 interest in the partnership with total capitalization of P150,000.
c. 1/5 interest in the partnership with total capitalization of P130,000.
d. 30% interest in the partnership with total capitalization of P130,000.
e. 25% interest in the partnership with total agreed capital of P150,000.
f. 30% interest in the partnership. The partnership has asset revaluation of P10,000
g. 15% interest in the total partners' equity of P150,000.
tnership
s. Is th
Chapter 2-Nature and Formation of a Partnership
EXERCISES
Exercise 2-1 (Cash and Non-cash Contributions)
Give the entry to record the investment of Alonzo into the partnership under each of the
following independent assumptions:
a.
ers int b.
conter c.
How d.
does
Cash of P400,000.
63
Accounts receivable of P500,000 with an allowance for uncollectible accounts of
P50,000.
Inventories that cost P300,000 using the moving average method accepted by the
partnership at its FIFO value of 80% of average cost.
Equipment that cost P900,000 with a book value of P300,000 after four years of use
without salvage value. The equipment should have been depreciated over a 10-year
useful life.
Exercise 2-2 (Cash and Net Asset Contributions)
Steffi and Leigh form a partnership. Steffi invests $1,000 cash, $2,000 of supplies, inventory with a mar-
ket value of $3,000, and machinery with a market value of $4,000. Prepare the partnership's journal entry
to record Steffi's investment.
Exercise 12-4
Recording partnership
formation P1
Chapter 12 Solutions
FUND OF ACCT PRIN(LOOSE-LEAF)+ACCESS
Ch. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - QS 12-9
Liquidation of partnership
P5
The Field,...Ch. 12 - Prob. 10QS
Ch. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 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 - Kay, Kat, and Kim are partners. In a liquidation,...Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 1BTNCh. 12 -
BTN 12-4 Assume that you are studying for an...Ch. 12 - BTN 12-3 Access the 2017 10-K of Advanced...Ch. 12 - Prob. 4BTN
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