Question
In: Accounting
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income...
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $22,000. The capital balances of each partner are $74,000 and $101,000, respectively, prior to the revaluation.
a. Provide the journal entry for the asset revaluation. For a compound transaction, if an amount box does not require an entry, leave it blank.
b. Provide the journal entry for Ortiz’s admission under the following independent situations:
1. Ortiz purchased a 20% interest for $33,000. For a compound transaction, if an amount box does not require an entry, leave it blank.
2. Ortiz purchased a 30% interest for $83,000. For a compound transaction, if an amount box does not require an entry, leave it blank.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income...
L. Bowers and V. Lipscomb are partners in Elegant Event
Consultants. Bowers and Lipscomb share income equally. M. Ortiz
will be admitted to the partnership. Prior to the admission,
equipment was revalued downward by $8,800. The capital balances of
each partner are $93,400 and $41,500, respectively, prior to the
revaluation. Required: A. On December 31, provide the journal entry
for the asset revaluation. Refer to the Chart of Accounts for exact
wording of account titles. B. On December 31, provide...
Alert Medical, LLC, consists of two doctors, Abrams and Lipscomb, who share in all income and...
Alert Medical, LLC, consists of two doctors, Abrams and
Lipscomb, who share in all income and losses according to a 2:3
income-sharing ratio. Dr. Lin has been asked to join the LLC. Prior
to admitting Lin, the assets of Alert Medical were revalued to
reflect their current market values. The revaluation resulted in
medical equipment being increased by $37,000. Prior to the
revaluation, the equity balances for Abrams and Lipscomb were
$355,000 and $407,000, respectively.
Provide the journal entry for...
Alert Medical, LLC, consists of two doctors, Abrams and Lipscomb, who share in all income and...
Alert Medical, LLC, consists of two doctors, Abrams and
Lipscomb, who share in all income and losses according to a 2:3
income-sharing ratio. Dr. Lin has been asked to join the LLC. Prior
to admitting Lin, the assets of Alert Medical were revalued to
reflect their current market values. The revaluation resulted in
medical equipment being increased by $40,000. Prior to the
revaluation, the equity balances for Abrams and Lipscomb were
$164,800 and $223,800, respectively.
Required:
A.
On December 31,...
Alert Medical, LLC, consists of two doctors, Abrams and Lipscomb, who share in all income and...
Alert Medical, LLC, consists of two doctors, Abrams and
Lipscomb, who share in all income and losses according to a 2:3
income-sharing ratio. Dr. Lin has been asked to join the LLC. Prior
to admitting Lin, the assets of Alert Medical were revalued to
reflect their current market values. The revaluation resulted in
medical equipment being increased by $40,000. Prior to the
revaluation, the equity balances for Abrams and Lipscomb were
$154,000 and $208,000, respectively.
a. Provide the journal entry...
89. Barber and Atkins are partners in an accounting firm and share net income and loss...
89. Barber and Atkins are partners in an accounting firm and
share net income and loss equally. Barber's beginning partnership
capital balance for the current year is $203,000, and Atkins'
beginning partnership capital balance for the current year is
$351,000. The partnership had net income of $107,000 for the year.
Barber withdrew $53,000 during the year and Atkins withdrew
$25,000. What is Barber's return on equity?
89B. Wallace and Simpson formed a partnership with Wallace
contributing $60,000 and Simpson contributing...
Barber and Atkins are partners in an accounting firm and share net income and loss equally....
Barber and Atkins are partners in an accounting firm and share
net income and loss equally. Barber's beginning partnership capital
balance for the current year is $213,000, and Atkins' beginning
partnership capital balance for the current year is $237,000. The
partnership had net income of $175,000 for the year. Barber
withdrew $76,000 during the year and Atkins withdrew $60,000. What
is Barber's return on equity?
Multiple Choice
20.0%
40.0%
41.1%
39.0%
37.9%
Barber and Atkins are partners in an accounting...
1/ Fellows and Marshall are partners in an accounting firm and share net income and loss...
1/ Fellows and Marshall are partners in an accounting firm and
share net income and loss equally. Fellows' beginning partnership
capital balance for the current year is $304,000, and Marshall's
beginning partnership capital balance for the current year is
$135,000. The partnership had net income of $139,000 for the year.
Fellows withdrew $32,000 during the year and Marshall withdrew
$108,000. What is Marshall's return on equity?
Multiple Choice
51.5%
30.0%
72.0%
34.7%
60.0%
2/ The partnership
agreement for Wilson, Pickett...
JK and MN are partners who share income and losses in the ratio of 3:2, respectively....
JK and MN are
partners who share income and losses in the ratio of 3:2,
respectively. On May 31, their capital balances were: JK $220,000
and MN $150,000. On that date, they agree to admit ST as a partner
with a one quarter capital interest. ST invests $180,000 in the
partnership under the bonus method:
a. What is
JK’s capital balance after ST’s admittance?
b. What is
MN’s capital balance after ST’s admittance
c. What
capital amount is recorded for ST
Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio (in...
Meir, Benson, and Lau are partners and share income and loss in
a 1:4:5 ratio (in percents: Meir, 10%; Benson, 40%; and Lau, 50%).
The partnership's capital balances are as follows: Meir, $28,000;
Benson, $119,000; and Lau, $153,000. Benson decides to withdraw
from the partnership.
1. Prepare the journal entry to record Benson's
withdrawal under each independent assumptions. (Do not
round intermediate calculations.)
(a) Benson sells her interest to North for $160,000 after
North is approved as a partner;
(b)...
Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in...
Meir, Benson, and Lau are partners and share income and loss in
a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50%).
The partnership's capital balances are as follows: Meir, $48,000;
Benson, $74,000; and Lau, $128,000. Benson decides to withdraw from
the partnership. 1. Prepare the journal entry to record Benson's
withdrawal under each independent assumptions. (Do not round
intermediate calculations.) (a) Benson sells her interest to North
for $160,000 after North is approved as a partner; (b)...
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