Question
In: Accounting
The capital accounts of Trent Henry and Tim Chou have balances of $142,900 and $85,800, respectively....
The capital accounts of Trent Henry and Tim Chou have balances of $142,900 and $85,800, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $31,400 and one-fourth of Chou’s interest for $20,200. Clarke contributes $74,500 cash to the partnership, for which she is to receive an ownership equity of $74,500. Required: a. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partners?
Solutions
Expert Solution
| Date | General Journal | Debit | Credit |
| A1 | Trent Henry, Capital (142900*1/5) | 28,580 | |
| Tim Chou, Capital (85800*1/4) | 21,450 | ||
| LeAnne Gilbert, Capital | 50,030 | ||
| ( To record the admission of Gilbert.) | |||
| A2 | Cash | 74,500 | |
| Becky Clarke, Capital | 74,500 | ||
| (To record the admission of Clarke.) |
Part 2
| Partner | Capital Balance |
| Trent Henry, Capital (142900-28580) | 114,320 |
| Tim Chou, Capital (85800-21450) | 64,350 |
| LeAnne Gilbert, Capital | 50,030 |
| Becky Clarke, Capital | 74,500 |
| Total capital balance | 303,200 |
ekkarill92 answered 1 year agoRelated Solutions
The capital accounts of Trent Henry and Tim Chou have balances of $146,000 and $93,800, respectively....
The capital accounts of Trent Henry and Tim Chou have balances
of $146,000 and $93,800, respectively. LeAnne Gilbert and Becky
Clarke are to be admitted to the partnership. Gilbert buys
one-fifth of Henry’s interest for $29,100 and one-fourth of Chou’s
interest for $21,300. Clarke contributes $69,400 cash to the
partnership, for which she is to receive an ownership equity of
$69,400.
Required:
A.
On December 31, journalize the
entries to record the admission of (1) Gilbert and (2) Clarke.
Refer...
Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry...
Admitting New Partners Who Buy an Interest and Contribute
Assets
The capital accounts of Trent Henry and Tim Chou have balances
of $142,500 and $102,800, respectively. LeAnne Gilbert and Becky
Clarke are to be admitted to the partnership. Gilbert buys
one-fifth of Henry’s interest for $32,800 and one-fourth of Chou’s
interest for $22,600. Clarke contributes $34,800 cash to the
partnership, for which she is to receive an ownership equity of
$34,800.
a1. Journalize the entry to record the
admission of...
Calculator The capital accounts of Heidi and Moss have balances of $90,000 and $65,000, respectively, on...
Calculator
The capital accounts
of Heidi and Moss have balances of $90,000 and $65,000,
respectively, on January 1, the beginning of the current fiscal
year. On April 10, Heidi invested an additional $8,000. During the
year, Heidi and Moss withdrew $40,000 and $32,000, respectively.
Revenues were $540,000 and expenses were $420,000 for the year. The
articles of partnership make no reference to the division of net
income.
Required:
1.
Prepare a statement of partners' equity for the partnership of
Heidi...
13. The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on...
13.
The capital accounts of Harrison and Marti have balances of
$160,000 and $110,000, respectively, on January 1, the beginning of
the current fiscal year. On April 10, Harrison invested an
additional $20,000. During the year, Harrison and Marti withdrew
$96,000 and $78,000, respectively, and net income for the year was
$264,000. The articles of partnership make no reference to the
division of net income.
Based on this information, the statement of partners' equity would
show what amount as total...
Question 1 The capital accounts of Hope and Indiana have balances of $230,000 and $190,000, respectively....
Question 1 The capital accounts of Hope and Indiana have
balances of $230,000 and $190,000, respectively. Clint and Casey
are to be admitted to the partnership. Clint buys one-fifth of
Hope’s interest for $60,000 and one-fourth of Indiana’s interest
for $40,000. Casey contributes $90,000 cash to the partnership, for
which he is to receive an ownership equity of $90,000. Required: a.
Journalize the entries to record the admission of Clint and Casey
b. What are the capital balances of each...
1) The capital accounts of Hope and Indiana have balances of $230,000 and $190,000, respectively. Clint...
1) The capital accounts of Hope and Indiana have balances of
$230,000 and $190,000, respectively. Clint and Casey are to be
admitted to the partnership. Clint buys one-fifth of Hope’s
interest for $60,000 and one-fourth of Indiana’s interest for
$40,000. Casey contributes $90,000 cash to the partnership, for
which he is to receive an ownership equity of $90,000.
Required:
a. Journalize the entries to record the admission of Clint and
Casey
b. What are the capital balances of each partner...
The capital accounts of Angel Alvarez and Emma Allison have balances of $47,740 and $71,570, respectively,...
The capital accounts of Angel Alvarez and Emma Allison have
balances of $47,740 and $71,570, respectively, on January 1, 20Y4,
the beginning of the fiscal year. On March 10, Alvarez invested an
additional $7,690. During the year, Alvarez and Allison withdrew
$31,410 and $39,630, respectively, and net income for the year was
$62,000. Revenues were $483,000, and expenses were $421,000. The
articles of partnership make no reference to the division of net
income.
Required:
A.
Journalize the entries to close...
The capital accounts of Angel Alvarez and Emma Allison have balances of $47,740 and $71,570, respectively,...
The capital accounts of Angel Alvarez and Emma Allison have
balances of $47,740 and $71,570, respectively, on January 1, 20Y4,
the beginning of the fiscal year. On March 10, Alvarez invested an
additional $7,690. During the year, Alvarez and Allison withdrew
$31,410 and $39,630, respectively, and net income for the year was
$62,000. Revenues were $483,000, and expenses were $421,000. The
articles of partnership make no reference to the division of net
income.
Required:
A.
Journalize the entries to close...
The capital accounts of Robert Jewell and Donald Kane have balances of $60,000 and $80,000 respectively....
The capital accounts of Robert Jewell and Donald Kane
have balances of $60,000 and $80,000 respectively. James Abbey and
George Bowman are to be admitted to the partnership. Abbey
purchases one-third of Jewell's interest for $25,000 and one-fifth
of Kane's interest for $20,000. Bowman contributes $40,000 cash to
the partnership, for which he is to receive an ownership equity of
$40,000.
INSTRUCTIONS: (a) Present the entries in general journal
form to record the admission to the partnership of (1) Abbey...
McGill and Smyth have capital balances on January 1 of $40,000 and $30,000, respectively. The partnership...
McGill and Smyth have capital balances on January 1 of $40,000
and $30,000, respectively. The partnership income-sharing agreement
provides for (1) annual salaries of $15,000 for McGill and $10,000
for Smyth, (2) interest at 10% on beginning capital balances, and
(3) remaining income or loss to be shared 60% by McGill and 40% by
Smyth.
Prepare a schedule showing the distribution of net income,
assuming net income is $65,000. (If an amount reduces
the account balance then enter with a...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Please write a paper about the qualification process to serve as an investment adviser. Does an...
- A property costs $100,000. A borrower can obtain an 80% loan with an 8% interest rate...
- Scenario 13‐2: Upgrading a Cluster to Windows Server 2016 As an administrator at the Contoso Corporation,...
- A 2.90-kg box is sliding along a frictionless horizontal surface with a speed of 1.8 m/s...
- At 650 K, the reaction MgCO3(s)<->MgO(s)+CO2(g) has Kp=0.026. A 10.1L container at 650 K has 1.0g...
- Knowledge Management has become a crucial component of a competitive organization and this argues that knowledge...
- History of world civilization: What does the Tao-te Ching influence, and reveal about the Chinese civilization?...
ADVERTISEMENT