Exercise 4-5. Record the entries of the partnership dissolution for the following independent cases: Case A - Snow and Sky are partners who share profits and losses in the ratio of 6:4. On March 1, 2023 the following data are available from the books of the partnership. Cash Accounts receivable Inventory Equipment, net Total 80,000 120,000 300,000 500,000 Accounts payable Snow, capital Sky, capital Snow, drawings Sky, drawings 1,000,000 Total 280,000 300,000 500,000 (50,000) (30,000) 1,000,000 The net income of the partnership prior to admission of Shadow is P50,000. Also, the partners agreed to revalue the inventory to P320,000 and equipment to P530,000. Shadow is to be admitted for 25% interest in the partnership by direct purchase from the partners for P250,000. Case B - Psalm and Trisha have capital balances of P150, 000 and P180, 000, respectively. Glenda is to invest P60, 000 for 15% in the partnership interest and also in the profit and loss. There is an undistributed net income in the amount of P80,000. Partners Psalm and Trisha share profit and loss 65:35. itostio Istigeo al

Exercise 4-5. Record the entries of the partnership dissolution for the following independent cases: Case A - Snow and Sky are partners who share profits and losses in the ratio of 6:4. On March 1, 2023 the following data are available from the books of the partnership. Cash Accounts receivable Inventory Equipment, net Total 80,000 120,000 300,000 500,000 Accounts payable Snow, capital Sky, capital Snow, drawings Sky, drawings 1,000,000 Total 280,000 300,000 500,000 (50,000) (30,000) 1,000,000 The net income of the partnership prior to admission of Shadow is P50,000. Also, the partners agreed to revalue the inventory to P320,000 and equipment to P530,000. Shadow is to be admitted for 25% interest in the partnership by direct purchase from the partners for P250,000. Case B - Psalm and Trisha have capital balances of P150, 000 and P180, 000, respectively. Glenda is to invest P60, 000 for 15% in the partnership interest and also in the profit and loss. There is an undistributed net income in the amount of P80,000. Partners Psalm and Trisha share profit and loss 65:35. itostio Istigeo al

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 29P

See similar textbooks

Similar questions

The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
Help me please
tnership s. Is th Chapter 2-Nature and Formation of a Partnership EXERCISES Exercise 2-1 (Cash and Non-cash Contributions) Give the entry to record the investment of Alonzo into the partnership under each of the following independent assumptions: a. ers int b. conter c. How d. does Cash of P400,000. 63 Accounts receivable of P500,000 with an allowance for uncollectible accounts of P50,000. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of 80% of average cost. Equipment that cost P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10-year useful life. Exercise 2-2 (Cash and Net Asset Contributions)
The CDG Carlos, Dan, and Gall Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: Assets Cash Accounts Receivable (net) Inventories Property, Plant and Equipment (net) Total Assets Liabilities and Capital Liabilities: Accounts Payable Capital: CDG PARTNERSHIP Balance Sheet At December 1, 20x6 Carlos, Capital Dan, Capital Gail, Capital Total Capital Total Liabilities and Capital $138,000 68,000 78,000 Personal assets Personal liabilities Personal net worth $ 34,000 93,000 118,000 336,000 $581,000 $297,000 284,000 $581,000 Additional Information 1. Each partner's personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow: Carlos Dan Gail $ 268,000 $310,000 $368,000 (239,000) (231,000) (340,000) $ 87,000 $ 28,000 $ 29,000 2. Carlos, Dan, and Gall share profits and losses in the ratio 15:45:40, 3. CDG sold all noncash assets on December 10, 20X6, for $276,000.
Problem 1. Alucard and Chou organized their partnership on 01/01/19. The following entries were made into their capital accounts during 2019. Required: If partnership profits for the year equaled P66,000, indicate the allocations between the partners under the following independent profit-sharing allocation conditions: Interest of 10% is allocated on weighted average capital balance and the remainder is divided equally. A salary of P9,000 will be allocated to Chou; 10% interest on ending capital is allocated to the partners; remainder is divided 60/40 to Alucard and Chou, respectively. Salaries are allocated to Alucard and Chou in the amount of P10,000 and P15,000, respectively and the remainder is allocated in the proportion to weighted average capital balances. A bonus of 10% of partnership profits after bonus is credited to Alucard, a salary of P35,000 is allocated to Chou, a P20,000 salary is allocated to Alucard, 10% interest on weighted capital is allocated, and remainder is…
Numbers 16, 17 and 18 (Partnership Liquidation – Installment Liquidation) On December 31, 2018, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners A, B and C. showed the following information: Cash Noncash assets 1,600,000 1,400,000 Total Liabilities 2,000,000 100,000 A, Capital В, Сарital С, Сарital 500,000 400,000 On January 1, 2019, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of January 31, 2019, the following transactions occurred: Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000. Liquidation expenses for the month of January amounting to P50,000 were paid. It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month of February, 2019. • 20% of the liabilities to third persons were settled. Available cash was distributed to the partners. As of February 28, 2019, the…
The following transactions are shown in the records of A partner's capital and drawing accounts: A, capital 1. Beginning balance, 100,000 2. Correction of understement of prior year's income, 10,000 3. Additional invetsment, 240,000 A, drawing 1. Temporary withdrawals, 60,000 2. Partnership debts paid by A, 90,000 3. Partnership claims collected and retained by A, 20,000 The partnership has a debit income summary balance amounting to 150,000 of which 1/3 is the hsare of A. Required: 1. Prepare the T-accountrs for A's capital and -account for A's drawing. Determine their respective ending balances. 2. Make the journal entries to close the income summary account and to close the drawing account. Problem II - Loans to and from Partners The loans to and…