ADVANCED ACCOUNTING
14th Edition
ISBN: 9781260361681
Author: Hoyle
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 14P
To determine
Determine what should happen to it if person R contributes additional cash of $20,000 to the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A local dental partnership has been liquidated and the final capital balances are
Atkinson, capital (40% of all profits and losses)
$
74,000
Kaporale, capital (30%)
34,000
Dennsmore, capital (20%)
(44,000
)
Rasputin, capital (10%)
(64,000
)
If Rasputin contributes cash of $24,000 to the partnership, how would this amount be distributed to the other partners?
A local dental partnership has been liquidated and the final capital balances are
If Rasputin contributes additional cash of $20,000 to the partnership, what should happen to it?
Rachel, Monica and Phoebe are partners with capital balances of P896,000, P3,120,000 and 3,160,( respectively, sharing profits and losses in the ration 3:2:1. Janice is admitted as a new partner bringing with her expertise and is to invest cash for a 25% interest in the partnership, which includes a credit of P840,000 bonus upon his admission.
1.How much cash should Janice contribute?
A.1,560,000
B. 1,800,000
C. 2,540,000
D. 672,000
Chapter 15 Solutions
ADVANCED ACCOUNTING
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...
Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29P
Knowledge Booster
Similar questions
- Partners orocan, keyway and zooey each has 300,000 capital in Plastic company. They share profits and losses in the ratio of 1:2:3. If they decide to liquidate the partnership and the available cash as initial settlement is P350,000, who among the partners will receive first?arrow_forwardJerry and Chan have formed a partnership. Jerry contributed cash of 630,000 and computer equipment that cost 225,000. The fair value of the computer is 180,000. Jerry has notes payable on the computer worth 60,000 to be assumed by the partnership. Jerry is to have 60% capital interest in the partnership. Gray contributed only 450,000. The partners agreed to share profits and losses equally. Jerry should make an additional investment or withdrawal at what amount?arrow_forwardA dental local partnership has been liquidated the final capital balances are: Atkins capital 40% all profits and losses $74,000, Kaporale capital 30% 34,000 , Densmore Capital 20% (44,000), Rasputin Capital 10% (64000) If Rasputin contributes cash of 24,000, how would this amount be distributed to the other partnersarrow_forward
- Choose the correct.The capital balance for Messalina is $210,000 and for Romulus is $140,000. These two partners share profits and losses 60 percent (Messalina) and 40 percent (Romulus). Claudius invests $100,000 in cash in the partnership for a 20 percent ownership. The bonus method will be used. What are the capital balances for Messalina, Romulus, and Claudius after this investment is recorded?a. $216,000, $144,000, $90,000b. $218,000, $142,000, $88,000c. $222,000, $148,000, $80,000d. $240,000, $160,000, $100,000arrow_forwardThe following are the capital balances and share in each profit of Ring Partnership:Aragorn 150 40%Legolas 250 40%Gimli 300 20% 9. If Gandalf was admitted by investing sufficient cash for 20% interest, how much must be his investment?10. If Gandalf was admitted by paying the partners P100 for 10% interest in the firm, how much will be the capital of Aragorn after the admission if implied goodwill was recorded?11. How much did Gandalf have invested for 25% interest if after his admission in the firm the capital balance of Legolas increased by P20?12. If Gimli withdrew from the firm and received P360, how much is the capital of Legolas if prior to withdrawal, the firm recorded a goodwill of P200.13. If the partnership was liquidated and P250 is ready for distribution, how much will Gimli received?14. If the partnership was liquidated and Gimli received P210, how much did Legolas received?…arrow_forwardThe capital balance for Maxwell is $110,000 and for Russell is $40,000. These two partners share profits and losses 70 percent (Maxwell) and 30 percent (Russell). Evan invests $50,000 in cash into the partnership for a 30 percent ownership. The bonus method will be used. What is Russell’s capital balance after Evan’s investment? Choose the correct. a. $35,000b. $37,000c. $40,000d. $43,000arrow_forward
- The following is the current balance sheet for a local partnership of doctors: Cash and current assets $ 30,000 Liabilities $ 40,000 Land 180,000 A, capital 20,000 Building and equipment (net) 100,000 B, capital 40,000 C, capital 90,000 D, capital 120,000 Totals $ 310,000 Totals $ 310,000 The following questions represent independent situations: E contributes $42,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances?arrow_forwardThe following are the capital balances and share in each profit of Ring Partnership: Aragorn 300 50% Legolas 200 30% Gimli 200 20% 1. If Gandalf was admitted by investing sufficient cash for 20% interest, how much must be his investment? 2. If Gandalf was admitted by paying the partners P100 for 10% interest in the firm, how much will be the capital of Aragorn after the admission if implied goodwill was recorded? 3. How much did Gandalf have invested for 25% interest if after his admission in the firm the capital balance of Legolas increased by P24? 4. If Gimli withdrew from the firm and received P280, how much is the capital of Legolas if prior to withdrawal, the firm recorded a goodwill of P200. 5. If the partnership was liquidated and P50 is ready for distribution, how much will Gimli received? 6. If the partnership was liquidated and Gimli received P140, how much did Legolas received? (Aragorn is insolvent) 7. if all non-cash assets were sold at a loss of P200, how…arrow_forwardBruce, Parker and May formed a partnership. Their capital balances showed the following. Bruce Capital P252,000; Parker, Capital-P126,000; May, Capital-P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000 Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce’s capital account?arrow_forward
- Choose the correct. Bishopapital balance of $120,000 in a local partnership, and Cotton has a $90,000 balance. These two partners share profits and losses by a ratio of 60 percent to Bishop and 40 percent to Cotton. Lovett invests $60,000 in cash in the partnership for a 20 percent ownership. The goodwill method will be used. What is Cotton’s capital balance after this new investment?a. $99,600b. $102,000c. $112,000d. $126,000arrow_forwardA local dental partnership has been liquidated and the final capital balances are as follow: Atikinson, capital (40% of all profits and losses), $70,000; Kaporale, capital (30%), $30,000; Dennsmore, capital(20%), $(42,000); Rasputin, capital(10%), $(58,000). If Rasputin contributes additional cash of $20,000 to the partnership, what should happen to it?arrow_forwardThe partnership of Hendrick, Mitchum, and Redding has the following account balances: This partnership is being liquidated. Hendrick and Mitchum are each entitled to 40 percent of all profits and losses with the remaining 20 percent going to Redding. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance? How should the $20,000 cash that is presently available in excess of liabilities be distributed? If the noncash assets are sold for a total of $50,000, what is the minimum amount of cash that Hendrick could receive?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