Jeremy and Eli are partners who share profits and losses equally. The capital accounts of the partners have the following balances: Jeremy 180,000 Eli 70,000 Thadez desires to join the firm and offered to invest 96,000 for a 1/3 interest. Jeremy and Eli declined his offer, but they extended a counter-offer to Thadez of 88,000 for a 25% interest in the capital and profits and losses of the firm. If Thadez accepted the offer, what would be the balance of Jeremy’s capital account after Thadez’s admission? Group of answer choices 178,250 187,000 199,000 181,750

Jeremy and Eli are partners who share profits and losses equally. The capital accounts of the partners have the following balances: Jeremy 180,000 Eli 70,000 Thadez desires to join the firm and offered to invest 96,000 for a 1/3 interest. Jeremy and Eli declined his offer, but they extended a counter-offer to Thadez of 88,000 for a 25% interest in the capital and profits and losses of the firm. If Thadez accepted the offer, what would be the balance of Jeremy’s capital account after Thadez’s admission? Group of answer choices 178,250 187,000 199,000 181,750

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Jeremy and Eli are partners who share profits and losses equally. The capital accounts of the partners have the following balances: Jeremy 180,000 Eli 70,000 Thadez desires to join the firm and offered to invest 96,000 for a 1/3 interest. Jeremy and Eli declined his offer, but they extended a counter-offer to Thadez of 88.000 for a 25% interest in the capital and profits and losses of the firm. If Thadez accepted the offer, what would be the balance of Jeremy's capital account after Thadez's admission? A. 178,250 B. 187.000 C. 199,000 D. 181,750
Jerry and Chan have formed a partnership. Jerry contributed cash of 630,000 and computer equipment that cost 225,000. The fair value of the computer is 180,000. Jerry has notes payable on the computer worth 60,000 to be assumed by the partnership. Jerry is to have 60% capital interest in the partnership. Gray contributed only 450,000. The partners agreed to share profits and losses equally. Jerry should make an additional investment or withdrawal at what amount?
Bruce, Parker and May formed a partnership. Their capital balances showed the following: Bruce, Capital P252,000; Parker, Capital- P126,000; May, Capital- P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in paetner Bruce's capital accounts?
Ali and Fatima are partners whose capital balances are $400,000 and $300,000 and who share profits 3:2. Due to a shortage of cash, Ali and Fatima agree to admit Ahmed to the firm. Instructions: Prepare the journal entries required to record Ahmed’s admission under each of the following independent assumptions: Ahmed invests $200,000 for a 1/4 interest. The total firm capital is to be $900,000. Ahmed invests $300,000 for a 1/4 interest. Goodwill is to be recorded. Ahmed purchases a 1/4 interest in the firm, with 1/4 of the capital of each old partner transferred to the account of the new partner. Ahmed pays the partners cash of $250,000, which they divide between themselves
Bruce, Parker and May formed a partnership. Their capital balances showed the following. Bruce Capital P252,000; Parker, Capital-P126,000; May, Capital-P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000 Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce’s capital account?
schnedider and samuels are parnters with capital balances of 15,000 and 25,000 respectively. They share profits in a ration 2:1. Goroff is to be admitted to the partnership. He agrees to be admitted with a cash investment to give him 1/3 interest in the capital and profits of the business. The good will to be granted to Goroff should be valued at $6000. The required cash to cover Goroff's investment is:
Bruce, Parker, and May formed a partnership. Their capital balances showed the following: Bruce, Capital – P252,000; Parker, Capital – P126,000; May, Capital – P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce’s capital account? Please provide a good accounting form in the solution
Batman and Robin agree to form a partnership. Batman is to contribute 135,600 cash and equipment that has a carrying value of 135,000 and a fair value of 115,000. The equipment however, has a mortgage attached to it and it is agreed by the partners that they will assume it. Robin, on the other hand contributed 240,000 cash. They share profits and losses in the ratio of 4:5. Furthermore, part of their agreement is to bring their initial capital in conformity with their profit and loss ratio.How much is the mortgage of the equipment? Pls provide solutionA. 58,600 B. 10,600 C. 78,600 D. 34,600
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Cindy, Casey, and Kara each invested $27,500 in a real estate venture. The partnership borrowed $216,000 and purchased a warehouse for $298,500. The note was secured by the building; there was no personal recourse against the partners. Required: What is each partner’s beginning at-risk amount in the venture? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)