Question
In: Accounting
The capital accounts of the Lee, Monroe and Newport partnership at December 31, 2018, together with...
The capital accounts of the Lee, Monroe and Newport partnership at December 31, 2018, together with profit and loss sharing ratios are as follows:
Lee (20%) 130,000
Monroe (30%) 200,000
Newport (50%) 170,000
The partners agree to admit Olson into the partnership.
REQUIRED: Prepare the journal entry or entries to admit Olson into the partnership under each of the following independent assumptions.
- Monroe and Newport sell 30% of each of their interests to Olson for $120,000 paid directly to Monroe and Newport.
- Olson invests $120,000 cash in the partnership for a 25% interest in capital and profits and the partnership assets are not revalued.
- Same situation as Number 2 except partnership assets are revalued.
- Olson invests $100,000 cash in the partnership for a 15% interest in the capital and profits and partnership assets are revalued.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Problem 2 The capital accounts of the Lee, Monroe and Newport partnership at December 31, 2018,...
Problem 2
The capital accounts of the Lee, Monroe and Newport
partnership at December 31, 2018, together with profit and loss
sharing ratios are as follows:
Lee
(20%) 130,000
Monroe
(30%) 200,000
Newport
(50%) 170,000
The partners agree to admit Olson into the
partnership.
REQUIRED: Prepare the journal entry or entries to admit
Olson into the partnership under each of the following independent
assumptions.
Monroe and Newport sell 30% of each of their interests
to Olson for $120,000 paid directly to Monroe and...
On December 31, 2018, the accounts in the ledger of Monroe Entertainment Co. are listed below....
On December 31, 2018, the accounts in the ledger of Monroe
Entertainment Co. are listed below. All accounts have normal
balances. At the beginning of the year, retained earning beginning
balance is $3,000.
Cash
$
16,000
Accounts Receivable
6,000
Equipment
12,000
Accumulated Depreciation- Equipment
(Credit Balance)
(6,000)
Other Assets
1,000
Accounts Payable
1,800
Long-term Note Payable
10,000
Common Stock
1,000
Sales
50,000
Cost of Goods sold
21,000
Selling Salaries Expense
...
On December 31, 2018, the accounts in the ledger of Monroe Entertainment Co. are listed below....
On December 31, 2018, the accounts in the ledger of Monroe
Entertainment Co. are listed below. All accounts have normal
balances. At the beginning of the year, retained earning beginning
balance is $3,000. Cash $ 16,000 Accounts Receivable 6,000
Equipment 12,000 Accumulated Depreciation- Equipment (Credit
Balance) (6,000) Other Assets 1,000 Accounts Payable 1,800
Long-term Note Payable 10,000 Common Stock 1,000 Sales 50,000 Cost
of Goods sold 21,000 Selling Salaries Expense 3,000 Administration
Wages Expense 6,000 Depreciation Expense (Office Equipment) 5,000...
Accounting and Financial Reporting II On December 31, a partnership has total partnership capital as follows:...
Accounting and Financial Reporting II
On December 31, a partnership has total partnership capital as
follows:
Partner #1,
capital
100,000
Partner #2,
capital
150,000
Partner #3,
capital
200,000
Total partnership
capital
450,000
The partners allocate income and losses 20% to partner #1, 30%
to partner #2 and 50% to partner #3. On December 31, Partner #3
retires from the partnership and is paid $225,000 in PARTNERSHIP
cash to settle his interest in the partnership. Prepare any
necessary journal entries on...
Payne Corporation has the following accounts as of December 31, 2018:
Payne Corporation has the following accounts as of December 31, 2018:
Total Assets $ 60,000
Total Liabilities 20,000
Total Equity 40,000
Compute the debt to equity ratio at December 31, 2018.
The partnership of Barzini, Corleone, Stracci and Tataglia showed the following capital accounts as of December...
The partnership of Barzini, Corleone, Stracci and Tataglia
showed the following capital accounts as of December 31, 2016:
partnership capital balances
barzini, capital 100,000
corleone, capital 125,000
stracci, capital 175,000
taattaglia, capital 250,000
total 650,000
Sollozzo contributes $150,000 into the partnership for a 20%
interest. The four original partners share profits and losses
according to the following ratio: 2:2:3:3. Using the
bonus method:
determine the balances for each of the five partners after
Sollozzo joins the partnership and
prepare a...
The following is the ending balances of accounts at December 31, 2018 for the Valley Pump...
The following is the ending balances of accounts at December 31,
2018 for the Valley Pump Corporation.
Account Title
Debits
Credits
Cash
32,000
Accounts receivable
70,000
Inventories
95,000
Interest payable
17,000
Marketable securities
58,000
Land
134,000
Buildings
335,000
Accumulated
depreciation—buildings
107,000
Equipment
89,000
Accumulated
depreciation—equipment
32,000
Copyright (net of
amortization)
19,000
Prepaid expenses (next 12
months)
39,000
Accounts payable
72,000
Deferred revenues (next 12
months)
27,000
Notes payable
285,000
Allowance for uncollectible
accounts
7,000
Common stock
270,000
Retained earnings
54,000...
The following is the ending balances of accounts at December 31, 2018 for the Valley Pump...
The following is the ending balances of accounts at December 31,
2018 for the Valley Pump Corporation.
Account Title
Debits
Credits
Cash
31,000
Accounts receivable
68,000
Inventories
93,000
Interest payable
16,000
Marketable securities
56,000
Land
132,000
Buildings
330,000
Accumulated depreciation—buildings
106,000
Equipment
87,000
Accumulated depreciation—equipment
31,000
Copyright (net of amortization)
18,000
Prepaid expenses (next 12 months)
38,000
Accounts payable
71,000
Deferred revenues (next 12 months)
26,000
Notes payable
280,000
Allowance for uncollectible accounts
6,000
Common stock
260,000
Retained earnings
57,000...
The following is the ending balances of accounts at December 31, 2018 for the Valley Pump...
The following is the
ending balances of accounts at December 31, 2018 for the Valley
Pump Corporation.
Account
Title
Debits
Credits
Cash
35,000
Accounts
receivable
76,000
Inventories
101,000
Interest
payable
20,000
Marketable
securities
64,000
Land
140,000
Buildings
350,000
Accumulated
depreciation—buildings
110,000
Equipment
95,000
Accumulated
depreciation—equipment
35,000
Copyright (net
of amortization)
22,000
Prepaid expenses
(next 12 months)
42,000
Accounts
payable
75,000
Deferred
revenues (next 12 months)
30,000
Notes
payable
300,000
Allowance for
uncollectible accounts
5,000
Common
stock
300,000
Retained
earnings
50,000...
The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing...
The following is the ending balances of accounts at December 31,
2018 for the Weismuller Publishing Company.
Account Title
Debits
Credits
Cash
101,000
Accounts receivable
196,000
Inventories
303,000
Prepaid expenses
184,000
Machinery and equipment
356,000
Accumulated
depreciation—equipment
128,000
Investments
176,000
Accounts payable
78,000
Interest payable
38,000
Deferred revenue
98,000
Taxes payable
48,000
Notes payable
290,000
Allowance for uncollectible
accounts
34,000
Common stock
418,000
Retained earnings
184,000
Totals
1,316,000
1,316,000
Additional information:
Prepaid expenses include $156,000 paid on December 31, 2018,...
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