Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 15.1.2E
To determine
Concept Introduction:
Initial Investment in Partnership:
When a partnership is formed, all partners can contribute for their capital. Contribution can be in cash or can be in form of fixed assets. When a partner contributes fixed assets as capital, then its capital contribution is fair value of assets contributed.
:
How the S’s capital account should be recorded.
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Problem: Admission by Purchase of Interest or Investment of Assets
Dolores Aguilar, Isolde Sustrina, and Beth Bigalbal are partners in Cavite Realty Company. Their capital balances as at July 31, 2019, are as follows:
Aguilar, Capital - 450,000Sustrina, Capital- 150,000Bigalbal, Capital- 300,000
Each partner has agreed to admit Nelia Pascual to the partnership.
Required:
Prepare the entries to record Pascual’s admission to or Aguilar’s withdrawal from the partnership under each of the following conditions:
Pascual paid Aguilar P125,000 for 20% of Aguilar’s interest in the partnership.
Pascual invested P200,000 cash in the partnership and received an interest equal to her investment.
Pascual invested P300,000 cash in the partnership for a 20% interest in the business. A bonus is to be recorded for the original partners on the basis of their capital balances.
Pascual invested P300,000 cash in the partnership for a 40% interest in the business. The original partners gave Pascual a…
. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $10,000. The capital balances of each partner are $131,000 and $185,000, respectively, prior to the revaluation.
Question Content Area
a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank.
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b. Provide the journal entry for Ortiz’s admission under the following independent situations:
1. Ortiz purchased a 20% interest for $66,000. If an amount box does not require an entry, leave it blank.
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2. Ortiz purchased a 30%…
Sabio as her original investment the firm of sabio and mariano, contributed equipment that had been recorded in the book of her own business as costing P900.000, with accumulated deprestion of P620.000. the partners agreed an valuation of P400.000 they also agreed to accept sabio account receivable of P360.000 realizable to the extent of 85%. compute the journal entry to record Sabio's investment in the partnership on june13.
Chapter 15 Solutions
Advanced Financial Accounting
Ch. 15 - Prob. 15.1QCh. 15 - Prob. 15.2QCh. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - Under what circumstances would a partner’s capital...Ch. 15 - Prob. 15.6QCh. 15 - Prob. 15.7QCh. 15 - Prob. 15.8QCh. 15 - Prob. 15.9QCh. 15 - Prob. 15.10Q
Ch. 15 - Prob. 15.11QCh. 15 - Prob. 15.12QCh. 15 - Prob. 15.13QCh. 15 - Prob. 15.14QCh. 15 - Prob. 15.15AQCh. 15 - Prob. 15.16BQCh. 15 - Prob. 15.1CCh. 15 - Prob. 15.2CCh. 15 - Prob. 15.3CCh. 15 - Prob. 15.1.1ECh. 15 - Prob. 15.1.2ECh. 15 - Prob. 15.1.3ECh. 15 - Prob. 15.1.4ECh. 15 - Multiple-Choice on Initial Investment [AICPA...Ch. 15 - Prob. 15.2ECh. 15 - Prob. 15.3ECh. 15 - Prob. 15.4ECh. 15 - Prob. 15.5ECh. 15 - Prob. 15.6ECh. 15 - Prob. 15.7ECh. 15 - Prob. 15.8.1ECh. 15 - Prob. 15.8.2ECh. 15 - Prob. 15.8.3ECh. 15 - Prob. 15.8.4ECh. 15 - Prob. 15.8.5ECh. 15 - Prob. 15.8.6ECh. 15 - Prob. 15.8.7ECh. 15 - Prob. 15.8.8ECh. 15 - Prob. 15.9ECh. 15 - Retirement of a Partner On January 1, 20X1, Eddy...Ch. 15 - Prob. 15.11PCh. 15 - Prob. 15.12PCh. 15 - Prob. 15.13PCh. 15 - Prob. 15.14PCh. 15 - Withdrawal of a Partner under Various Alternatives...Ch. 15 - Prob. 15.16.1PCh. 15 - Prob. 15.16.2PCh. 15 - Prob. 15.16.3PCh. 15 - Prob. 15.16.4PCh. 15 - Prob. 15.16.5PCh. 15 - Prob. 15.16.6PCh. 15 - Prob. 15.16.7PCh. 15 - Prob. 15.16.8PCh. 15 - Prob. 15.16.9PCh. 15 - Prob. 15.17PCh. 15 - Prob. 15.18PCh. 15 - Initial investments and Tax Bases [AICPA Adapted]...
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