Question

Questions 7 through 9 are based on the following: A, B and C have capital balances...

Questions 7 through 9 are based on the following:

A, B and C have capital balances of ₱112,000, ₱130,000 and v58,000, respectively, and share profit in the ratio 3:2:1. D invest cash in the partnership for a one-fourth interest.

7. Assume D receives a one-fourth interest in the assets of the partnership, which includes credit for ₱25,000 of goodwill that is recognized upon admission. How much cash D invest?

a. ₱100,000

b. ₱75,000

c. ₱125,000

d. ₱50,000

8. Assume D receives a one-fourth interest in the assets of the partnership and D is credited with ₱20,000 of the bonus from the old partners that is recognized upon D's admission. How much cash D invest?

a. ₱73,333

b. ₱100,000

c. ₱93,333

d. ₱80,000

9. Assume D receives a one-fourth interest in the assets of the partnership and B is credited with ₱15,000 of the bonus from D, how much cash D invest? d. c. b.

a. ₱115,000

b. ₱105,000

c. ₱160,000

d. ₱120,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
#1. Which statement below is correct if a new partner receives a bonus upon contributing assets...
#1. Which statement below is correct if a new partner receives a bonus upon contributing assets into the partnership? A = the amount of tangible assets contributed by the new partner into the partnership B= the amount of capital credited to the new partner C= total capital of the partnership before the admission of a new partner D= total capital of the partnership after the admission of a new partner Group of answer choices 1. B > A and D...
Admission of new partner-Bonus Method Assume that Partners A and B each report a Capital Account...
Admission of new partner-Bonus Method Assume that Partners A and B each report a Capital Account of $150,000. Partner C wants to join the partnership as an equal one-third partner. Because the partnership has been very profitable, Partners A and B require Partner C to contribute $300,000 in cash to the partnership in return for a one-third interest. Assume that Partners A and B share profits 60% and 40%, respectively, prior to the admission of Partner C. After admission of...
Admission of new partner—Revaluation Assume that Partners A and B have Capital Accounts equal to $720,000...
Admission of new partner—Revaluation Assume that Partners A and B have Capital Accounts equal to $720,000 and $360,000, respectively. Partner C wants to join the partnership as one-third partner. Partner C contributes $1,530,000 in cash to the partnership in return for a one-third interest. Prior to the admission of Partner C, Partners A and B wish to revalue the long-term assets of the partnership. They obtain an appraisal of the land and building that indicates a current value of $1.8...
The capital account balances for Dina & Hanan partnership on January 1, 2018, were as follows:...
The capital account balances for Dina & Hanan partnership on January 1, 2018, were as follows: Dina Capital $200,000 Hanan Capital $100,000 Dina and Hanan shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit Maya to the partnership with a 35% interest in partnership capital and net income. Maya invested $100,000 cash, and no goodwill was recognized. What is the balance of Dina's capital account after the new partnership is created? A.   $140,000...
A, B, C, & D (all individuals) form a general partnership in which they each have...
A, B, C, & D (all individuals) form a general partnership in which they each have an equal interest in capital and profits. All the partners and the partnership are cash method taxpayers. In exchange for their respective partnership interest, each partner transfers the following assets, all of which have been held more than 2 years. PartnerAssetsAdjusted BasisFair Market Value ALand $30,000$70,000 Goodwill$0$30,000 BEquipment(S 1245 gain) $25,000$45,000 Installment note from The sale of land $20,000$25,000 Inventory$5,000$30,000 CBuilding$25,000$60,000 Land$25,000$10,000 Receivables for...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $187,500 and $135,200, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $43,100 and one-fourth of Chou’s interest for $29,700. Clarke contributes $45,800 cash to the partnership, for which she is to receive an ownership equity of $45,800. a1. Journalize the entry to record the admission...
Following is the current balance sheet for a local partnership of doctors: Cash and current assets...
Following is the current balance sheet for a local partnership of doctors: Cash and current assets . . . . . . . . . . . . . . . . . . . . . $ 30,000 Land . . . . . . . . . . . . . . . . . . . . . . . 180,000 Building and equipment   (net) . . . . . . . . . . . ....
The information below is used for the next two questions. A and B have maintained separate...
The information below is used for the next two questions. A and B have maintained separate accounting practices in the Hattiesburg area. A has been in accounting practice for nearly 20 years whereas B has been practicing for 5 years. On 1/1/X1, A and B have decided to form the A&B accounting partnership. A will contribute $100,000 of cash and will bring in a large client portfolio while B will contribute a building having a $300,000 fair value. Under the...
35) When a new partner is admitted at a higher-than-book-value contribution, the existing partners will receive...
35) When a new partner is admitted at a higher-than-book-value contribution, the existing partners will receive a bonus amount. A. True; ____or B.False ____ 36) Keith and Jim are partners. Keith has a capital balance of $47,000 and Jim has a capital balance of $32,000. Jim sells $15,000 of his ownership to Bill. Which of the following is TRUE of the journal entry to admit Bill? A) Bill, Capital will be debited for $17,000. B) Jim, Capital will be debited...
The capital accounts of Trent Henry and Tim Chou have balances of $146,000 and $93,800, respectively....
The capital accounts of Trent Henry and Tim Chou have balances of $146,000 and $93,800, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $29,100 and one-fourth of Chou’s interest for $21,300. Clarke contributes $69,400 cash to the partnership, for which she is to receive an ownership equity of $69,400. Required: A. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT