EBK HORNGREN'S ACCOUNTING, THE FINANCIA
12th Edition
ISBN: 9780134490496
Author: Matsumura
Publisher: YUZU
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Textbook Question
Chapter 12, Problem S12.7SE
Accounting for the admission of a new partner
Learning Objective 4
Penn has $90,500 capital and Hammet has $68,500 capital in the Penn & Hammet partnership. Penn and Hammet share
Requirements
1. Calculate Pilard's capital in the new partnership.
2. Journalize the partnership’s receipt of the $53,000 from Pilard.
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Homework Activity 1
A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing
Interest on capital : A 2,000, B 1500, C 1000
Interest on drawings: A 200, B 150, C 100
Salary to Partners A 500 B 700 C 600
Commission to Partners A 200 B 300 C 400
Prepare a profit and loss appropriation account to show the distribution of profit among the partners.
Admitting New Partners Who Buy an Interest and Contribute Assets
The capital accounts of Trent Henry and Tim Chou have balances of $142,000 and $102,400, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $32,700 and one-fourth of Chou’s interest for $22,500. Clarke contributes $34,600 cash to the partnership, for which she is to receive an ownership equity of $34,600.
a1. Journalize the entry to record the admission of Gilbert. For a compound transaction, if an amount box does not require an entry, leave it blank.
a2. Journalize the entry to record the admission of Clarke.
b. What are the capital balances of each partner after the admission of the new partners?
Partner
Capital Balance
Trent Henry
$
Tim Chou
$
LeAnne Gilbert
$
Becky Clarke
$
owe
subject-Accounting
Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio (in ratio form: Caitlin, 3/10; Chris, 4/10; Molly, 3/10). The partnership’s capital balances are Caitlin, $139,000; Chris, $99,000; and Molly, $119,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $79,000. The balance in Paul’s capital account immediately after his admission is:
Multiple Choice
$90,800
$357,000
$198,000
$107,200
$87,200
Chapter 12 Solutions
EBK HORNGREN'S ACCOUNTING, THE FINANCIA
Ch. 12 - Prob. 1QCCh. 12 - Prob. 2QCCh. 12 - Prob. 3QCCh. 12 - Which financial statement shows the changes in...Ch. 12 - Prob. 5QCCh. 12 - Prob. 6QCCh. 12 - Prob. 7QCCh. 12 - Peter and Steve admit Meredith to their...Ch. 12 - Prob. 9QCCh. 12 - Prob. 10QC
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQCh. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - What are the three steps involved in liquidation...Ch. 12 - Prob. 17RQCh. 12 - Prob. S12.1SECh. 12 - Prob. S12.2SECh. 12 - Prob. S12.3SECh. 12 - Prob. S12.4SECh. 12 - Prob. S12.5SECh. 12 - S12-6 Accounting for the admission of a new...Ch. 12 - Accounting for the admission of a new partner...Ch. 12 - Prob. S12.8SECh. 12 - Prob. S12.9SECh. 12 - Prob. S12.10SECh. 12 - Prob. S12.11SECh. 12 - Prob. S12.12SECh. 12 - Prob. E12.13ECh. 12 - Prob. E12.14ECh. 12 - Prob. E12.15ECh. 12 - Prob. E12.16ECh. 12 - Prob. E12.17ECh. 12 - Prob. E12.18ECh. 12 - Prob. E12.19ECh. 12 - Prob. E12.20ECh. 12 - Prob. E12.21ECh. 12 - Prob. E12.22ECh. 12 - Determining characteristics of a partnership and...Ch. 12 - Prob. P12.24APGACh. 12 - Prob. P12.25APGACh. 12 - Prob. P12.26APGACh. 12 - Prob. P12.27APGACh. 12 - Prob. P12.28APGACh. 12 - Prob. P12.29APGACh. 12 - Prob. P12.30APGACh. 12 - Prob. P12.31BPGBCh. 12 - Prob. P12.32BPGBCh. 12 - Prob. P12.33BPGBCh. 12 - Prob. P12.34BPGBCh. 12 - Prob. P12.35BPGBCh. 12 - Accounting for the liquidation of a partnership...Ch. 12 - Prob. P12.37BPGBCh. 12 - Prob. P12.38BPGBCh. 12 - Prob. P12.39CTCh. 12 - P12-40 Accounting for partner contributions,...Ch. 12 - Prob. 12.1TIATCCh. 12 - Prob. 12.1DCCh. 12 - Prob. 12.2DCCh. 12 - Prob. 12.1EICh. 12 - Prob. 12.1FSC
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