Advanced Accounting
14th Edition
ISBN: 9781260726435
Author: Joe Ben Hoyle
Publisher: Mcgraw-hill Higher Education (us)
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 15P
To determine
Identify the amount of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
W and X are partners who have agreed to admit Y, who will invest P15,000 for a 20 percent interest. The previous capital balances were P15,000 and P30,000 for W and X, respectively. W and X had shared profits and losses equally. What amount will be recorded in Y's Capital account?
a. P6,000 credit
b. P12,000 credit
c. P15,000 credit
d. P9,000 credit
1. Jag, Lee and Bench are partners having the following capital balances of P 11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. if Jag receives a total of P3,200 in cash, how much will Bench received at this point?
a. P800
b. P3,000
c. P3,800
d. P5,600
Following are the capital account balances and profit and loss percentages indicated parenthetically) for the Alden, Boyd, and Carmel
partnership
Alden (40%)
Boyd (40%)
Carmel (20%)
$ 230,000
180,000
160,000
Required:
Del Mar trivests $260,000 in cash for a 30 percent ownership Interest. The money goes to the business. No goodwill or other
revaluation is to be recorded. After the transaction, compute Boyd's capital balance.
Bonus to onginal partners
Boyd's ownership share
Boyd's share of bonus
Boyd's capital before bonus
Boyd's capital after bonus
5
$
0
Chapter 14 Solutions
Advanced Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - Prob. 8QCh. 14 - Prob. 9QCh. 14 - Prob. 10Q
Ch. 14 - Prob. 11QCh. 14 - Prob. 12QCh. 14 - What is a partnership dissolution? Does...Ch. 14 - Prob. 14QCh. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - When a partner withdraws from a partnership, why...Ch. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Prob. 5PCh. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Prob. 11PCh. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 14PCh. 14 - Prob. 15PCh. 14 - Prob. 16PCh. 14 - Prob. 17PCh. 14 - Prob. 18PCh. 14 - Prob. 19P
Knowledge Booster
Similar questions
- James joined a partnership by contributing the following: cash, P20,000;accounts receivable, P4,000; land, P240,000 fair value; and accounts payable, P16,000. What will be the initial amount recorded in James’ capital account? Give the entry to record the investment of Jamesarrow_forward12. Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the William, Jennings, and Bryan partnership: William (40%) $ 280,000 Jennings (40%) 230,000 Bryan (20%) 210,000 Darrow invests $325,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jennings’s capital balance? Multiple Choice $234,600 $230,000 $327,500 $233,450arrow_forwardRequired: 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000. After Pedro’s admission, the profitand loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What isthe capital balance of Pedro after the first year?arrow_forward
- The capital accounts and the profit sharing ratio of Pancho and Villa are shown below: Capital P/L ratio Pancho 100,000 50% Villa 50,000 50% Total 150,000 100% Espinosa invests 40,000 for a 20% interest in the new firm. He will share 15% in the profits and the balance will be divided equally. REQUIRED: a. Journal entry to record the admission of Espinosa using the goodwill method. b. Give the entry if the bonus method is used. c. What is Espinosa's gain by the use of the method preferred?arrow_forward1. Jag, Lee and Bench are partners having the following capital balances of P 11,200, P13,000 and P5,800respectively. Profits and losses are shared 4:2:1. How much is the total loss on realization?Required to answer. Single choice. a. P2,100 b. P27,900 c. P30,000 d. P1,200arrow_forwardFollowing are the capital account balances and profit and loss percentages (indicated parenthetically) for the William, Jennings, and Bryan partnership: William (40%) $ 170,000 Jennings (40%) 120,000 Bryan (20%) 100,000 Darrow invests $250,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jennings’s capital balance?arrow_forward
- 6. The partner capital of Cowyn and Brown is $12,000 and $6,500, respectively, and various profits in a 4:3 ratio. Alexa is signed in as a new partner with an investment of $7,000 per share, and profits must be divided equally. (a) Assuming that Alexa is given a 20% interest in the company, then (1) What journal entries will be made to record the investment if the goodwill method is used? (2) What journal entries will be made if the bonus method is used? (3) Which method will Alexa choose? How much profit will be obtained from using this method? (b) Assuming that Alexa is assigned a 35% interest in the company, then (1) What journal entries would be made to record the investment if the goodwill method was used? (2) What journal entries will be made if the bonus method is used? (3) Which method will Alexa choose? How much profit will be obtained from using this method?arrow_forwardThe following information was obtained from the records of Alben Traders, a partnership business with Albert and Bennie as partners, after the net profit of R546 000 was appropriated between the partners: Partners' salaries R480 000; Interest on drawings R6 000; Total share of the remaining loss R48 000. Which of the following reflects the value of the interest on capital? • A. R24 000 O B. R108 000 O C. R972 000 O D. R120 000arrow_forwardThe capital balances of the partners are presented to you before the retirement of X: X, P50,000; Y, P45,000; Z, P35,000. P/L ratio, equally. After the retirement of X, the capital balance of Z was P34,000. How much is the total capital after the retirement of X? A. P48,000 B. P80,000 C. P78,000 D. P52,000 The capital balances of the partners are presented to you before the retirement of Z: X, P60,000; Y, P55,000; Z, P45,000. P/L ratio, equally. After the retirement of Z, the capital balance of X was P57,500. How much is the capital of Y after the retirement of Z? A. P55,000 B. P57,500 C. P52,500 D. P115,000arrow_forward
- The following information was obtained from the records of Alben Traders, a partnership business with Albert and Bennie as partners, after the net profit of /R546 000 was appropriated between the partners: Partners' salaries R480 000; Interest on drawings R6 000; Total share of the remaining loss R48 000. Which of the following reflects the value of the interest on capital? O A. R108 000 OB. R24 000 O C. R120 000 O D. R972 000arrow_forwardPartners Matero and Malaya each have a P200,000 capital balance and share profits and losses in a 3:2 ratio, respectively. Cash equals P100,000, non-cash assets equal P600,000, and liabilities equal P300,000. 1.If the non-cash assets are sold for P350,000, then Matero’s capital account will a. decrease by 105,000 b. decrease by 150,000 c. increase by 210,000 d. decrease by 210,000 2. If the non-cash assets are sold for P250,000, and each partner is personally insolvent, Malaya eventually will receive cash of a. 100,000 b. 0 c. 50,000 d. 60,000arrow_forwardMoose, Booze and Goose are partners with capital balances of P 320,000, P 450,000 and P 520,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Booze P 20,000. Upon liquidation, P 390,000 is available for distribution to the partners. What amount of cash will Moose receive? a. P78,000 b. P136,000 c. P258,000 d. P320,000 Please provide a good accounting form for the solution. Thank you!arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education