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...
The ABC partnership reports the following condensed balance
sheet: Cash $ 480,000 Liabilities $2,000,000 Noncash assets...
The ABC partnership reports the following condensed balance
sheet: Cash $ 480,000 Liabilities $2,000,000 Noncash assets
3,160,000 Partner A, capital 290,000 Partner B, capital 1,100,000
Partner C, capital 250,000 Total assets $3,640,000 Total
liabilities and partner capital $3,640,000 The partners wish to
liquidate the partnership. The noncash assets are sold for
$2,300,000 with the loss distributed to the partners in the ratio
of 30%/30%/40% to partner A, B, and C, respectively. The
liabilities are paid in full. Assume that any...
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...
In liquidation, just prior to the final distribution of cash to
the partners, the balance in...
In liquidation, just prior to the final distribution of cash to
the partners, the balance in the Cash account is $600,000; The
partners have capital balances as follows: Presley, $290,000
credit; Laswell, $250,000 credit, and Hunter, $60,000 credit. The
income ratio is 6:2:2, respectively. How much cash should be
distributed to Presley?
Partners Audrey, Betty, and Charles have capital account
balances of $210,000 each. The income and loss ratio is 5:2:3,
respectively. In the process of liquidating the partnership,noncash
assets...
The following is an example of partnership income
allocation:
Each partner receives 7% interest on his...
The following is an example of partnership income
allocation:
Each partner receives 7% interest on his or her
beginning capital account balances. Partner A receives a $20,000
salary and 30% of the profit or loss. Partner B receives a 15%
bonus on distributable income after interest and salaries and
shares in 25% of the profit and loss. Partner C has a profit and
loss ratio of 45%. The partners beginning capital balances are as
follows:
A = $25,000
B =...
Liquidation schedule—one negative capital account with no
capital contribution
The ABC partnership reports the following condensed...
Liquidation schedule—one negative capital account with no
capital contribution
The ABC partnership reports the following condensed balance
sheet:
Cash
$580,000
Liabilities
$800,000
Noncash assets
1,200,000
Partner A, capital
450,000
Partner B, capital
450,000
Partner C, capital
80,000
Total assets
$1,780,000
Total liabilities and partner capital
$1,780,000
The partners wish to liquidate the partnership. The noncash
assets are sold for $900,000 with the loss distributed to the
partners in the ratio of 30%/30%/40% to partner A, B, and C,
respectively. The...
6) The Hylands Hotels are liquidating their
partnership. Before selling the assets and paying liabilities, the...
6) The Hylands Hotels are liquidating their
partnership. Before selling the assets and paying liabilities, the
capital balances for the partners are: Martha $45,000; Nathan
$36,000 and Orin $26,000. The profit and loss sharing ratio has
been 2:2:1 for Martha, Nathan and Orin respectively. The
partnership has cash $68,000, $75,000 noncash assets and
$36,000Accounts payable.
6a. Assume the partnership sells the non-cash
assets and received $84,000 in cash.
6b. Assume the partnership sells the noncash
assets and received $35,000.
Instructions...
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...
Assume that there are three partners in a partnership, A, B, and
C. Partner C provides...
Assume that there are three partners in a partnership, A, B, and
C. Partner C provides services to the partnership and is entitled
to a salary of $90,000. Assume that the partnership revenues less
expenses (other than salary to Partner C) amount is $480,000.
Finally, assume that the Partnership Agreement provides for a
sharing ratio of 40:40:20 for Partners A, B, and C, respectively.
How much profit should be allocated to each partner?
a. Partner A gets $156,000, Partner B...