Question

In: Accounting

The partnership of Ace, Jack, and Spade has been in business for 25 years. On December...

The partnership of Ace, Jack, and Spade has been in business for 25 years. On December 31, 20X5, Spade decided to retire. The partnership balance sheet reported the following capital balances for each partner at December 31, 20X5:

Ace, Capital $ 151,600
Jack, Capital 201,800
Spade, Capital 121,200


The partners allocate partnership income and loss in the ratio 20:30:50, respectively.

Required:
Record Spade’s withdrawal under each of the following independent situations.

g. Because of limited cash in the partnership, Spade received land with a fair value of $100,200 and a partnership note payable for $51,500. The land’s carrying amount on the partnership books was $61,800. Capital of the partnership after Spade’s retirement was $361,300. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

A.

Land

Ace capital

Jack capital

spade capital

B

Spade capital

ace capital

jack capital

land credit: 100,200

Notes payable: 51, 500

Solutions

Expert Solution

ekkarill92 answered 10 months ago
Next > < Previous

Related Solutions

The partnership of Ace, Jack, and Spade has been in business for 25 years. On December...
The partnership of Ace, Jack, and Spade has been in business for 25 years. On December 31, 20X5, Spade decided to retire. The partnership balance sheet reported the following capital balances for each partner at December 31, 20X5: Ace, Capital $ 151,900 Jack, Capital 200,200 Spade, Capital 120,600 The partners allocate partnership income and loss in the ratio 20:30:50, respectively. Required: Record Spade’s withdrawal under each of the following independent situations. a. Jack acquired Spade’s capital interest for $151,900 in...
The Ace and Deuce partnership has been created to operate a law firm. The partners are...
The Ace and Deuce partnership has been created to operate a law firm. The partners are attempting to devise a fair system to allocate profits and losses. Ace plans to work more billable hours each year than Deuce. However, Deuce has more experience and can charge a higher hourly rate. Ace expects to invest more money in the business than Deuce. REQUIRED Build a spreadsheet that can be used to allocate profits and losses to these two partners each year....
The Ace and Deuce partnership has been created to operate a law firm. The partners are...
The Ace and Deuce partnership has been created to operate a law firm. The partners are attempting to devise a fair system to allocate profits and losses. Ace plans to work more billable hours each year than Deuce. However, Deuce has more experience and can charge a higher hourly rate. Ace expects to invest more money in the business than Deuce. Required Build a spreadsheet that can be used to allocate profits and losses to these two partners each year....
Jack and Diane are both 25 years old. They agree to the following contracts: Jack agrees...
Jack and Diane are both 25 years old. They agree to the following contracts: Jack agrees to buy Diane’s phone for $300. Jack agrees to buy Diane’s car for $6,000. Jack rents an apartment from Diane for 2 years. Jack buys a vacation house on .20 acres from Diane. Jack agrees that, if Diane has lunch with him every Saturday until Jack retires, Jack will pay Diane $2000. Jack helps Diane get a car loan. He promises Diane’s lender that...
Lonnie Davis has been a general partner in the Highland Partnership for many years and is...
Lonnie Davis has been a general partner in the Highland Partnership for many years and is also a sole proprietor in a separate business. To spend more time focusing on his sole proprietorship, he plans to leave Highland and will receive a liquidating distribution of $65,750 in cash and land with a fair market value of $113,500 (tax basis of $145,000). Immediately before the distribution, Lonnie’s basis in his partnership interest is $415,000, which includes his $85,000 share of partnership...
Lonnie Davis has been a general partner in the Highland Partnership for many years and is...
Lonnie Davis has been a general partner in the Highland Partnership for many years and is also a sole proprietor in a separate business. To spend more time focusing on his sole proprietorship, he plans to leave Highland and will receive a liquidating distribution of $50,500 in cash and land with a fair market value of $115,500 (tax basis of $145,250). Immediately before the distribution, Lonnie’s basis in his partnership interest is $412,000, which includes his $57,000 share of partnership...
Lonnie Davis has been a general partner in the Highland Partnership for many years and is...
Lonnie Davis has been a general partner in the Highland Partnership for many years and is also a sole proprietor in a separate business. To spend more time focusing on his sole proprietorship, he plans to leave Highland and will receive a liquidating distribution of $72,000 in cash and land with a fair market value of $135,500 (tax basis of $173,000). Immediately before the distribution, Lonnie’s basis in his partnership interest is $448,000, which includes his $79,500 share of partnership...
Jack, age 72, and Sydney, age 60, have been married for 20 years. Jack is unemployed...
Jack, age 72, and Sydney, age 60, have been married for 20 years. Jack is unemployed and Sydney earns $20,000. How much can Jack and Sydney contribute to each of their traditional IRA in 2020 respectively? Jack can contribute $   Sydney can contribute $ How will your answers change if Jack is 60 and Sydney is 48 years old now? Jack can contribute $   Sydney can contribute $
Use Excel.             A business has a mortgage of £200,000 for a term of 25 years,...
Use Excel.             A business has a mortgage of £200,000 for a term of 25 years, to be paid in equal monthly instalments. Assume an interest rate of 4.8% p.a. (calculated monthly) throughout the period. Determine the regular monthly payment. Construct a table showing the outstanding balance for each month for the full term of the mortgage. Determine the amount outstanding when the business is exactly half way through the term of the mortgage. Determine the time remaining when the...
Jack, a geologist, had been debating for years whether or not to venture out on his...
Jack, a geologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients and he believed that many of them would follow him if he were to leave his current employer. As part of a New Year’s resolution, Jack decided he would finally do it. Jack put his business plan together and, on January 1 of this year, Jack opened his...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT