The Struter Partnership has total partners' equity of $340,000, which is made up of Main, Capital,...

The Struter Partnership has total partners' equity of $340,000, which is made up of Main, Capital, $238,000, and Frist, Capital, $102,000. The partners share net income and loss in a ratio of 77% to Main and 23% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption. (1) Record the admission of Adison with an investment of $85,000 for a 20% interest in the equity and a 20% share in any income and loss. (2) Record the admission of Adison with an investment of $120,000 for a 20% interest in the equity and a 20% share in any income and loss. (3) Record the admission of Adison with an investment of $55,000 for a 20% interest in the equity and a 20% share in any income and loss.

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The Struter Partnership has total partners' equity of $320,000, which is made up of Main, Capital,...

The Struter Partnership has total partners' equity of $320,000, which is made up of Main, Capital, $224,000, and Frist, Capital, $96,000. The partners share net income and loss in a ratio of 76% to Main and 24% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Adison for a 20% interest in the equity...

The Books Partnership has a total partners’ equity of $620,000 which is made up of Kit...

The Books Partnership has a total partners’ equity of $620,000 which is made up of Kit Kat capital $434,000 and Rick Rat capital $186,000. The partners share net income and loss in a ratio of 83% to Kat and 17% to Rat. On November 1, Jonny Cakes is admitted to the partnership and given a 20% share in any income and loss. • Prepare journal entries to record the admission of Jonny for a 20% interest in the equity and...

I. There are two main sources of capital - debt and equity. The total value of...

I. There are two main sources of capital - debt and equity. The total value of investments financed by bonds (debt) is about four times the value of investment financed by shares on global market I Discuss two reasons why you think this is the case. ii Discuss two largest borrowers of bonds iii Discuss two largest lenders of bonds

ABC capital structure is made up of; CAPITAL STRUCTURE DEBT • Bonds EQUITY • Preference Shares...

ABC capital structure is made up of; CAPITAL STRUCTURE DEBT • Bonds EQUITY • Preference Shares • Ordinary Shares • ABC Ltd. has 120,000 bonds outstanding with a face value of $100 each. These bonds have 5 years to maturity and pay an annual coupon of 7.5%. ABC’s statutory corporate tax rate is 30%. • Moody’s Corporation is one of a big ratings agency which has given ABC Ltd. a debt rating of AAA. The following table shows the current...

You are an accountant at a partnership. The partnership has four partners, and, according to the...

You are an accountant at a partnership. The partnership has four partners, and, according to the partnership agreement, all have an equal stake in the company. This partnership was approached by a corporation that would like to acquire them by a stock acquisition. The partnership has no authorized stock, and the corporation does not want to pay cash for the partnership. The partnership is valued at $4,000,000 today. Reading the partnership agreement, you find that the partnership can be terminated...

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...

partnership has three partners, Bell, Casey and Duffy, with capital balances of $50,000, $60,000, and $70,000...

partnership has three partners, Bell, Casey and Duffy, with capital balances of $50,000, $60,000, and $70,000 respectively. The partners share income equally. Duffy retires and is paid using the personal assets of Bell and Casey. Which statement is true concerning the accounting for this transaction? A. If the total paid to Duffy is more than $70,000, implied goodwill is recognized. B. Bell and Casey are required to pay Duffy equal amounts of personal assets, as specified in their income-sharing agreement....

A, B and C are equal partners in the ABC partnership which has the following balance...

A, B and C are equal partners in the ABC partnership which has the following balance sheet: Assets Partners’ Capital A.B. F.M.V. A.B. F.M.V. Cash $6,000 $6,000 A $12,000 $18,000 A/R 0 9,000 B 12,000 18,000 Inventory 18,000 18,000 C 12,000 18,000 Land & Building 6,000 12,000 Equipment 6,000 9,000 $36,000 $54,000 $36,000 $54,000 The partnership distributes the $9,000 worth of accounts receivable to A and $18,000 worth of inventory equally ($9,000 each) to B and...

1. We Hate Eachother Partnership has two partners, Hans and Gretal. Hans has an existing capital...

1. We Hate Eachother Partnership has two partners, Hans and Gretal. Hans has an existing capital balance as of January 1st of $10,000 while Gretal has a balance of $15,000. Each partner gets a monthly salary of $500, and also receive 2% of their start of their year capital balance as an extra share of income. The partnership had net income of the year of $30,000. All remaining net income after any necessary allocations is split evenly. Make the journal...

Coburn (beginning capital, $59,000) and Webb (beginning capital $95,000) are partners. During 2020, the partnership earned...

Coburn (beginning capital, $59,000) and Webb (beginning capital $95,000) are partners. During 2020, the partnership earned net income of $68,000, and Coburn made drawings of $17,000 while Webb made drawings of $25,000. Assume the partnership income-sharing agreement calls for income to be divided 40% to Coburn and 60% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit...

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