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1) Kaylee and Symone decided to start a partnership. Symone contributed $10,000 and a piece of...

1) Kaylee and Symone decided to start a partnership. Symone contributed $10,000 and a piece of equipment that had a fair market value of $20,000. There was a loan on the equipment of $5000 that the partnership assumed. Kaylee contributed $20,000 in cash. Prepare the necessary journal entries to account for the partnership formation.

Kaylee and Symone took distributions from the company this year in the amounts of $500 and $800 respectively. Prepare the necessary journal entry.

The profit for the company this year was $10,000. Kaylee and Symone have a partnership agreement that calls for a 45%/55% split of the profits. Prepare the necessary journal entry.

What if Kaylee and Symone’s partnership agreement called for a split based on an allocation of their Capital balance. Prepare the necessary journal entry.

Kaylee decides to sell her interest in the partnership to Dylan for $35,000. What would happen on the Partnership’s books? What would the journal entry be?

Symone and Dylan decide to let Cristian join the partnership. He contributes $10,000 into the partnership.

The partnership is being liquidated. The partnerships profit/loss agreement is Symone 50%, Dylan, 30% and Cristian 20%. The equipment can be sold for $25,000. Prepare the necessary journal entries.

The partnership has the following balances on its trial balance:

Cash DEBIT$50,000

Equipment DEBIT 30,000

Accumulated Depreciation CREDIT $10,000

Accounts Payable CREDIT 5,000

Note Payable CREDIT 1,000

Symone, Capital CREDIT 30,000

Dylan, Capital CREDIT 23,500

Cristian, Capital CREDIT 10,500

Totals $80,000 $80,000

Expert Solution

ekkarill92 answered 1 year ago

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