Question

1. Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital...

1. Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $93,600 and $91,300, respectively. The partnership generated net income of $41,400. What is Tomas's capital balance after closing the revenue and expense accounts to the capital accounts?

a.$139,390

b.$124,650

c.$119,172

d.$130,463

2. Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $80,000 and $120,000, respectively. The partnership generated net income of $30,000. What is Tomas's capital balance after closing the revenue and expense accounts to the capital accounts?

a.$22,500

b.$102,500

c.$127,500

d.$57,500

3. Hannah Johnson contributed equipment, inventory, and $43,900 cash to a partnership. The equipment had a book value of $29,000 and a market value of $34,200. The inventory had a book value of $47,300 but only had a market value of $19,400 due to obsolescence. The partnership also assumed a $15,000 note payable owed by Hannah that was originally used to purchase the equipment.

What amount should be recorded to Hannah's capital account?

a.$125,400

b.$105,200

c.$82,500

d.$112,500

4. Henry Jones contributed equipment, inventory, and $44,000 cash to a partnership. The equipment had a book value of $35,000 and market value of $28,000. The inventory had a book value of $25,000 but only had a market value of $12,000 due to obsolescence. The partnership also assumed a $15,000 note payable owed by Henry that was originally used to purchase the equipment.

What amount should be recorded to Henry's capital account?

a.$69,000

b.$84,000

c.$104,000

d.$89,000

5. Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $7,500 and a fair market value of $18,000. Kelsey will invest a building with a book value of $40,000 and a fair market value of $44,000.

What amount will be recorded to Sandra's capital account?

a.$7,500

b.$18,000

c.$10,500

d.$25,500

Homework Answers

Answer #1

1. (b) $124,650

Tomas's capital = $93,600 + ($41,400 x 3/4) = $124,650

2. (b) $102,500

Tomas's capital = $80,000 + ($30,000 x 3/4) = $102,500

3. (c) $82,500

Hannah's capital account = $43,900 + $34,200 + $19,400 - $15,000 = $82,500

4. (a) $69,000

Henry's capital account = $44,000 + $28,000 + $12,000 - $15,000 = $69,000

5. (b) $18,000

Sandra's capital account = $18,000 fair market value of equipment will be recorded

"It would be appreciated if you give your feedback"

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Trevor Smith contributed equipment, inventory, and $48,000 cash to a partnership. The equipment had a book...
Trevor Smith contributed equipment, inventory, and $48,000 cash to a partnership. The equipment had a book value of $25,000 and a market value of $28,000. The inventory had a book value of $70,000, but only had a market value of $30,000, due to obsolescence. The partnership also assumed a $14,500 note payable owed by Smith that was used originally to purchase the equipment. Required: Provide the journal entry for Smith’s contribution to the partnership. Refer to the Chart of Accounts...
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...
Turner, Roth, and Lowe are partners who share income and loss in a 1:3:6 ratio. After...
Turner, Roth, and Lowe are partners who share income and loss in a 1:3:6 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $123,000; total liabilities, $92,250; Turner, Capital, $1,300; Roth, Capital, $9,425; and Lowe, Capital, $20,025. The cash proceeds from selling the assets were sufficient to repay all but $29,000 to the creditors.    (a) Calculate the gain (loss) from...
Pam and John are partners in PJ’s partnership, having capital balances of $120,000 and $40,000, respectively,...
Pam and John are partners in PJ’s partnership, having capital balances of $120,000 and $40,000, respectively, and share income in a ratio of 3:1. Gerry is to be admitted into the partnership with a 20 percent interest in the business. Required For each of the following independent situations, first record Gerry’s admission into the partnership and then specify and briefly explain why the accounting method used in that situation is GAAP or non-GAAP. Gerry invests $50,000, and goodwill is to...
Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio (in...
Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio (in percents: Meir, 10%; Benson, 40%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $38,000; Benson, $159,000; and Lau, $203,000. Benson decides to withdraw from the partnership. 1. Prepare the journal entry to record Benson's withdrawal under each independent assumptions. (Do not round intermediate calculations.) (a) Benson sells her interest to North for $160,000 after North is approved as a partner; (b)...
Ali and Kamel are partners who share income and losses in the ratio of 3:2, respectively....
Ali and Kamel are partners who share income and losses in the ratio of 3:2, respectively. On August 31, their capital balances were: Ali, 175,000 and Kamel, 150,000. On that date, they agree to admit Thamer as a partner with a one-third capital interest. If Thamer invests 125,000 in the partnership, what is Ali's capital balance after Thamer's admittance
Arlene, Brad, and Chick are partners, sharing income 2:1:2. After selling all of the noncash assets...
Arlene, Brad, and Chick are partners, sharing income 2:1:2. After selling all of the noncash assets for cash, dividing gains and losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Arlene, $20,000 Credit; Brad, $10,000 Credit; and Chick, $30,000 Credit. How much cash should be distributed to Arlene? The capital balances in the ABC partnership shows a credit balance for partners A & B. Partner C, however, has a debit balance of $19,000. The...
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra,...
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Balance Sheet Assets Liabilities Cash $ 180,800 Accounts payable $ 245,500 Inventory 537,200 Equity Kendra, Capital 93,000 Cogley, Capital 212,500 Mei, Capital 167,000 Total assets $ 718,000 Total liabilities and equity $ 718,000    Required: For each of the...
Partners A and B form a partnership where each receive a 50% interest in capital and...
Partners A and B form a partnership where each receive a 50% interest in capital and profits. Partner A contributes cash of $25,000 and land valued at $25,000. Partner A has a basis in the land of $20,000 and has held it for two years. Partner B contributes equipment (with a basis to B of $15,000 and a fair market value of $30,000) and inventory (with a basis to B of $10,000 and a fair market value of $20,000). Partner...
Partners A and B form a partnership where each receive a 50% interest in capital and...
Partners A and B form a partnership where each receive a 50% interest in capital and profits. Partner A contributes cash of $25,000 and land valued at $25,000. Partner A has a basis in the land of $20,000 and has held it for two years. Partner B contributes equipment (with a basis to B of $15,000 and a fair market value of $30,000) and inventory (with a basis to B of $10,000 and a fair market value of $20,000). Partner...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT