Question
Helgi, Guðrún, & Kobbi form a partnership to sell troll dolls in Reykjavik, Iceland. Helgi, &...
Helgi, Guðrún, & Kobbi form a partnership to sell troll dolls in Reykjavik, Iceland. Helgi, & Guðrún each invest $600 to start the partnership. The three members agree to share profits and losses equally (1/3 each). This is true even though Kobbi makes no Capital Contribution. Kobbi is a super-salesperson and is welcomed into the partnership by Helgi, & Guðrún. The plans are that the partnership is to be in business from 11/25/20 until 12/25/20. So after the Christmas season they will dissolve the partnership and distribute any remaining cash to the partners based on the proper allocation. Prepare a proper schedule showing the partners capital account changes and the final distribution of cash assuming:
1) The partnership has $1,800 cash remaining;
2) The partnership has $300 cash remaining.
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Lori and Peter enter into a partnership and decide to share profits and losses as follows:...
Lori and Peter enter into a partnership and decide to share
profits and losses as follows: 1. The first allocation is a salary
allowance with Lori receiving $ 9 comma 000 and Peter receiving $
11 comma 000. 2. The second allocation is 20% of the partners'
capital balances at year end. On December 31, 2019, the capital
balances for Lori and Peter are $ 85 comma 000 and $ 25 comma 000,
respectively. 3. Any remaining profit or loss...
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) . . . . . . . . . . . ....
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
$
64,000
Liabilities
$
66,000
Land
208,000
A, capital
46,000
Building and equipment (net)
168,000
B, capital
66,000
C, capital
116,000
D, capital
146,000
Totals
$
440,000
Totals
$
440,000
The following questions represent independent
situations:
E is going to invest enough money in this partnership to receive
a 20 percent interest. No goodwill or bonus is to be recorded. How
much should E...
Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following...
Problem 12-4A Partnership income allocation, statement of
partners' equity, and closing entries LO P2 [The following
information applies to the questions displayed below.] Mo Meek, Lu
Ling, and Barb Beck formed the MLB Partnership by making capital
contributions of $72,900, $283,500, and $453,600, respectively.
They predict annual partnership net income of $481,500 and are
considering the following alternative plans of sharing income and
loss: (a) equally; (b) in the ratio of their initial capital
investments; or (c) salary allowances of...
2015: Matthew and Michael Goode (cousins) decide to form a partnership (M&M) on April 1, 2015....
2015:
Matthew and Michael Goode (cousins) decide to form a partnership
(M&M) on April 1, 2015. Each contributed personally-owned
assets to start the new company. Matthew Goode contributed $100,250
in cash and property with book value of $57,750 and appraised value
of $78,750. Michael Goode contributed cash of $99,750; computer
equipment with book value of $52,500 and appraised value of
$21,000; a software library with book value of $63,000 and
appraised value of $23,500; and office equipment with book value...
1. A, B, C and D decided to form a partnership to conduct restaurant business. On...
1. A, B, C and D decided to form a
partnership to conduct restaurant business. On 01/01/2015, A
contributed 100,000 cash. B contributed 30,000 worth of inventory
and B has expertise that is worth 20,000, recognized by all the
partners. C contributed by PPE with market value of 100,000 and
loan of 50,000 which will be transferred to the partnership. D
contributes some patents with market value of 100,000. Below are
the rules to divide the profits (losses) each year....
A partnership of attorneys in the St. Louis, Missouri, area has the following balance sheet accounts...
A partnership of attorneys in the St. Louis, Missouri, area has
the following balance sheet accounts as of January 1, 2015:
Assets . . . . . . . . . . . . . . . . . . . . .
$320,000
Liabilities . . . . . . . . . . . . . . . . . .
$120,000
Athos, capital . . . . . . . . . . . . . ....
A partnership of attorneys in the St. Louis, Missouri, area has the following balance sheet accounts...
A partnership of attorneys in the St. Louis, Missouri, area has
the following balance sheet accounts as of January 1, 2018:
Assets
$
370,000
Liabilities
$
116,000
Athos, capital
98,000
Porthos, capital
88,000
Aramis, capital
68,000
According to the articles of partnership, Athos is to receive an
allocation of 50 percent of all partnership profits and losses
while Porthos receives 30 percent and Aramis, 20 percent. The book
value of each asset and liability should be considered an accurate
representation...
The Calvin-Dogwood Partnership owns inventory that was purchased for $65,800, has a current replacement cost of...
The Calvin-Dogwood Partnership owns inventory that was purchased
for $65,800, has a current replacement cost of $58,900, and is
priced to sell for $93,600. At what amount should the inventory be
recorded in the accounts of the new partnership if Alexis is to be
admitted?
a.$65,800
b.$34,700
c.$58,900
d.$93,600
2)
The balance sheet of Morgan and Rockwell was as follows
immediately prior to the partnership's liquidation: cash, $22,300;
other assets, $144,000; liabilities, $41,100; Morgan, capital,
$60,100; Rockwell, capital, $65,100. The...
Sid, Bailey, Brian, and Rick formed a general partnership to operate a Chinese restaurant. Their written...
Sid, Bailey, Brian, and Rick formed a general partnership to
operate a Chinese restaurant. Their written partnership agreement
provided that the profits would be divided so that Sid would
receive 40%, Bailey, 30%, Brian, 20%, and Rick 10%. There was no
provision in the agreement about how to allocate losses.
Answer the following questions:
1) In the first year, Bill sued the partnership getting a
judgment of $100,000. From whom can Bill collect the judgment? Can
he choose which of...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 3 minutes ago
asked 3 minutes ago
asked 7 minutes ago
asked 8 minutes ago
asked 35 minutes ago
asked 50 minutes ago
asked 59 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago