Question

In: Accounting

The XYZ Partnership has the following balance sheet at January 1, 2018, prior to the admission...

The XYZ Partnership has the following balance sheet at January 1, 2018, prior to the admission of new partner, E.

Assets

Amount $

Liabilities + Capital

Amount $

Cash & CA

49,000

Liabilities

592,000

Land

534,000

A capital

55,000

PPE

394,000

B capital

32,000

C capital

107,000

D capital

191,000

977,000

977,000

E contributes $25,000 into the partnership for interest which is 30% of PPE as agreed. The four original partners share profits and losses equally. Use the bonus method for the calculations.

Requirement: (round off decimal places)

  1. Pass journal entry to record the admission of E.
  2. Draw the balance sheet dated December 2018.

Solutions

Expert Solution

ekkarill92 answered 9 months ago
Next > < Previous

Related Solutions

A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are...
A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses):             Cash $ 33,000 Liabilities $ 50,000 Other assets   100,000 Playa, capital (40%)   24,000       Bahia, capital (30%)   29,000       Arco, capital (30%)   30,000 Total $ 133,000 Total $ 133,000 During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are...
A summary balance sheet for Abdullah, Mohammed, and Meshal partnership on January 1, 2018 is shown...
A summary balance sheet for Abdullah, Mohammed, and Meshal partnership on January 1, 2018 is shown below. Partners Abdullah, Mohammed, and Meshal allocate profit/loss in their respective ratios of 2:1:1. The partnership agreed to pay partner Mohammed $135,000 for his partnership interest upon his retirement from the partnership on January 1, 2018. Assets Cash $75,000 Marketable securities 60,000 Inventory 85,000 Land 90,000 Building-net 110,000 Total assets $420,000 Equities Abdullah, capital                 $210,000 Mohammed, capital 105,000 Meshal, capital 105,000 Total equities $420,000...
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash...
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 44,000 Liabilities $ 44,500 Noncash assets 244,000 Drysdale, loan 27,500 Drysdale, capital (50%) 82,000 Koufax, capital (30%) 72,000 Marichal, capital (20%) 62,000 a. Liquidation expenses are estimated to be $23,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $82,000 are sold for $64,000. How is the available cash to be divided?
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash...
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 54,000 Liabilities $ 59,500 Noncash assets 294,000 Drysdale, loan 27,500 Drysdale, capital (50%) 97,000 Koufax, capital (30%) 87,000 Marichal, capital (20%) 77,000 Liquidation expenses are estimated to be $14,000. Prepare a predistribution schedule to guide the distribution of cash. Assume that assets costing $92,000 are sold for $69,000. How is the available cash to be divided? Assume that assets costing $92,000 are sold...
Partnership Income Allocation—Various Options The January 1, 2017, balance sheet of the partnership of Linda Kingston...
Partnership Income Allocation—Various Options The January 1, 2017, balance sheet of the partnership of Linda Kingston and Jeannette Allen is shown below. Assets Liabilities and Capital Cash $12,000 Liabilities $34,000 Other assets 108,000 Capital - Kingston 35,600 Capital - Allen 50,400 Total assets $120,000 Total liabilities and capital $120,000 The partnership reported revenues of $48,000 and expenses of $33,000 for 2017. Neither partner withdrew funds from the partnership during the year. Kingston invested $4,800 in the firm on June 28,...
XYZ Bank has the following balance sheet (in $million):                   Loans     100           &nbsp
XYZ Bank has the following balance sheet (in $million):                   Loans     100                   Securities              25 Inter-bank Lending            0                   Cash/Reserves     10 -        - Demand Deposits               110 Bonds                                        20 Equity                                        ? .   Here’s ABC Bank’s balance sheet (in $million):                   Loans     2000                   Securities              250                   Cash/reserves      12 -        - Demand Deposits               1000 Bonds                                        200 Inter-bank Borrowing      1040 Equity                                        ? Return to the original balance sheets for ABC and XYZ. Suppose reserve requirements are 3% against deposits....
1.The equal XYZ Partnership has the following balance sheets: Basis FMV Property A $39,000 $54,000 Property...
1.The equal XYZ Partnership has the following balance sheets: Basis FMV Property A $39,000 $54,000 Property B $60,000 $42,000 Inventory A $3,000 $15,000 Inventory B $15,000 $12,000 $117,000 $123,000 Capital, X $35,000 $41,000 Capital, Y $41,000 $41,000 Capital, Z $41,000 $41,000 $117,000 $123,000 XYZ has a Code Section 754 election in effect, and X sells her interest to W for $41,000 cash. The two Properties are both capital assets. Inventory A was contributed by X at a time when its...
XYZ Company recorded the following information related to their inventory accounts for 2018: January 1, 2018...
XYZ Company recorded the following information related to their inventory accounts for 2018: January 1, 2018 December 31, 2018 Direct materials 10,000 17,000 Work in process 11,000 ? Finished goods 16,000 9,000 Additional information is as follows: Direct materials purchased .......... $19,000 Direct labor ........................ 15,000 Actual manufacturing overhead ....... 16,000 Applied manufacturing overhead ...... 14,000 Net income .......................... 20,000 S&A expenses ........................ 30,000 Sales revenue ....................... 90,000 Calculate the work in process inventory balance on December 31.
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $...
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $ 160,000 Robbins, Capital 150,000 Prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to Robbins after interest of 8 percent is given to each partner based on beginning capital balances. On January 2, 2018, Jeffrey invests $91,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction,...
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $...
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $ 90,000 Robbins, Capital 80,000 Prince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to Robbins after interest of 9 percent is given to each partner based on beginning capital balances. On January 2, 2018, Jeffrey invests $49,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT