on January 1 freed and genmo formed a partnership by contributing 405000 and 270000, respectively. On February 1. Fred contributed 135000 on May 1 genmo contributed machinery with fair market of 90000 and a net book value of 75000 when they contributed on July 1, Fred and Genmo each withdrew 40,000 what is the average capital of Fred and Genmo
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- On January 1, FRED and GEMMO formed a partnership by contributing cash of P300,000 and P360,000 , respectively . On August 1, Fred contributed an additional cash of P45,000 . On June 1 , Gemmo contributed machinery with a fair market value of P60,000 and a net book value of P90,000 when contributed . On July 1, Fred and Gemmo each withdrew 30,000 . 1. What is the average capital of Fred ? 2. What is the average capital of Gemmo?On January 1 , FRED and GEMMO formed a partnership by contributing cash of P300,000 and P360,000 , respectively . On August 1, Fred contributed an additional cash of P45,000 . On June 1, Gemmo contributed machinery with a fair market value of P60,000 and a net book value of P90,000 when contributed . On July 1, Fred and Gemmo each withdrew 30,000 . 1. What is the ending capital of Fred ? 2. What is the ending capital of Gemmo ?Griffin and Rhodes formed a partnership on January 1, 20X9. Griffin contributed cash of $120,000 and Rhodes contributed land with a fair value of $160,000. The partnership assumed the mortgage on the land which amounted to $40,000 on January 1. Rhodes originally paid $90,000 for the land. On July 31, 20X9, the partnership sold the land for $190,000. Assuming Griffin and Rhodes share profits and losses equally, how much of the gain from sale of land should be credited to Griffin for financial accounting purposes? Group of answer choices $0 $15,000 $35,000 $45,000
- Ahmed and Salim form a partnership on June 1. Ahmed contributes OMR 15,000 cash, inventory with a market value of OMR 40,000 , and Accounts Payable of OMR 80,000. Ahmed also contributed computer equipment with a cost of OMR 80,000 and accumulated depreciation of OMR 20,000 . Current market value is OMR 85,000 Ahmed's Capital will be Select one: O a. Credit, 30,000 O b. Credit, 60,000 O c. Debit, 30,000 O d. Debit, 60,000On January 1, FRED and GEMMO formed a partnership by contributing cash of 405,000 and 270,000, respectively. On February 1. Fred contributed an additional 135,000. On May 1, Gemmo contributed machinery with a fair market value of 90,000 and a net book value of 75,000 when contributed. On November 1, Gemmo contributed an additional 45,000 cash to the partnership. The partnership reported a net income of 257,400 for the year and the profit or loss agreement are as follows: Interest at 6% is allowed on average capital balances; Salaries if 2,700 per month to each partner; Bonus to Fred of 10% of net income after interest, salaries and bonus; and Balance to be divided in the ratio of 6:4 to Fred and Gemmo, respectively. Required: Prepare a schedule for the division of net profit for 2016 with supporting computations when appropriate.Winnie and Minnie form a partnership. Winnie contributed $5,000 cash and $20,000 in inventory. Minnie contributes $8,000 in cash and land with a current market value of $60,000. The land originally cost $30,000. Minnie also brings over a $20,000 liability to the partnership. Which of the following is correct? Select one: O a. Minnie, capital is credited for 68,000 b. Winnie, capital is debited for 25,000 c. Minnie, capital is credited for 48,000 O d. Winnie, capital is credited for $5,000
- On January 1, FRED and GEMMO formed a partnership by contributing cash of P810,000 and P540,000, respectively. On March 1, Fred contributed an additional P135,000. On August 1, Gemmo contributed machinery with a fair market value of P180,000 and a net book value of P150,000 when contributed. On October 1 Gemmo contributed an additional P90,000 cash to the partnership. Interest at 6% is allowed on average capital balances; Salaries if P6,000 per quarter to each partner; Bonus to GEMMO of 10% of net income; and Balance to be divided in the ratio of 6:4 to Fred and Gemmo, respectively. Required: Table showing the computation of average capital balances of each partner. Journal Entries to record Entry upon formation Additional investments Schedule/Table showing the distribution of Net Income for EACH ASSUMPTION. Journal Entry to record for EACH ASSUMPTION: NET Income/ NET Loss; and Distribution of Net IncomeOn January 1, FRED and GEMMO formed a partnership by contributing cash of 405,000 and 270,000, respectively. On February 1. Fred contributed an additional 135,000. On May 1, Gemmo contributed machinery with a fair market value of 90,000 and a net book value of 75,000 when contributed. On November 1 Gemmo contributed an additional 45,000 cash to the partnership. The partnership reported a net income of 257,400 for the year and the profit or loss agreement are as follows: • Interest at 6% is allowed on average capital balance; • Salaries if 2,700 per month to each partner; • Bonus to Fred of 10% of net income after interest, salaries and bonus; and • Balance to be divided in the ratio of 6:4 to Fred and Gemmo, respectively. Required: Prepare a schedule for the division of net profit for 2016 with supporting computations when appropriate.On November 1, Jackson and Kiln formed a partnership with Jackson contributing land valued at $320,000 and a building valued at $130,000. Kiln contributed $230,000 in cash. The partnership assumed the mortgage on Jackson’s property of $240,000. Profits and losses are to be shared equally. What are the balances of the partner’s capital accounts after recording these transactions?
- On January 1, FRED and GEMMO formed a partnership by contributing cash of P405,000 and P270,000, respectively. On February 1. Fred contributed an additional P135,000. On May 1, Gemmo contributed machinery with a fair market value of P90,000 and a net book value/cost of P75,000 when contributed. On November 1 Gemmo contributed an additional P45,000 cash to the partnership. Profit or loss agreement are as follows: • Interest at 6% is allowed on average capital balances; • Salaries of P2,700 per month to each partner; • Bonus to Fred of 10% of net income; and • Balance to be divided in the ratio of 6:4 to Fred and Gemmo, respectively. ASSUMPTIONS: 1. The company had a revenue of 458,300 and expenses of 227, 900 resulting in a profit of 257,400. 2. The company had a revenue of 227, 900 and expenses of 458,300 resulting in a loss of 257,400. 3. The company had a revenue of 458,300 and expenses of 406,325 resulting in a profit of 51,975. Required: 1. Table showing the computation of average…Taylor and Tanner formed a partnership. Taylor contributed $50,000 in cash. Tanner contributed land and buildings he purchased for $50,000 some time ago. His tax basis in the property is now $30,000, although it was recently appraised for $70,000. There is a $15,000 mortgage attached to the building that the partnership will assume. What is the amount of Tanner’s capital account after his contribution? a. $50,000 b. $30,000 c. $35,000 d. $55,000On January 1 , FRED and GEMMO formed a partnership by contributing cash of P405,000 and P270,000 , respectively . On February 1. Fred contributed an additional P135,000 . On May 1 , Gemmo contributed machinery with a fair market value of P90,000 and a net book value of P75,000 when contributed . On November 1 Gemmo contributed an additional P45,000 cash to the partnership . The partnership reported a net income of P257,400 for the year and the profit or loss agreement are as follows: Interest at 6% is allowed on average capital balances Salaries if P2,700 per month to each partner Bonus to Fred of 10% of net income and Balance to be divided in the ratio of 6:4 to Fred and Gemmo , respectively Required: 1. Table showing the computation of average capital balances of each partner . 2. Schedule for the division of net profit for 2016 3. Journal Entries to record a . Entry upon formation A. Entry upon formation B. Additional formation C. Net Income D. Distribution of Income