1.2.EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare andupload the journal entries to record contributions of Kim and Krislam into the partnershipunder the following independent assumptions:3.Page4.9Cash contribution amounting to P45,000 each.Kim contributed P35,000 cash and a store equipment with carrying value of $27,000.Krislam contributed P15,000 cash and a delivery vehicle with a fair market value of P195,000.Kim and Krislam agreed that each depreciable asset is overvalued by $4,000.Kim contributed P10,000 cash and furniture and fixtures with carrying value of P32,000.Krislam contributed P5,000 cash and a building with a fair market value of P295,000 and anunpaid mortgage of P27,500. Kim and Krislam agreed that building is undervalued byP9,000.Kim contributed P25,000 cash, a store equipment with fair market value of P47,000, anddelivery vehicle with a fair market value of P175,000. Krislam, an industrial partner, was tocontribute her expertise in marketing.EXERCISE 5. Journal Entries and Statement Preparation Two existing sole-O

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EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepar upload the journal entries to record contributions of Kim and Krislam into the partne under the following independent assumptions:

EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepar upload the journal entries to record contributions of Kim and Krislam into the partne under the following independent assumptions:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3SEB

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EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 1. Cash contribution amounting to $45,000 each. 2. Kim contributed $35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed $15,000 cash and a delivery vehicle with a fair market value of $195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. 3. Kim contributed $10,000 cash and furniture and fixtures with carrying value of $32,000. Krislam contributed $5,000 cash and a building with a fair market value of $295,000 and an unpaid mortgage of $27,500. Kim and Krislam agreed that building is undervalued by $9,000. 4. Kim contributed $25,000 cash, a store equipment with fair market value of $47,000, and delivery vehicle with a fair market value of $175,000. Krislam, an industrial partner, was to contribute her…
2. Hailley and Indie formed a partnership, with capital contributions, as follows: Hailley- Cash of P1,350,000 Indie -Equipment with an agreed value of P 1,500,000 Give the journal entry. Description P.R. Debit Credit
Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are as follows: Jane Kathy Book Value Fair Value Book Value Fair Value Receivable Inventories Equipment Payable P 22,500 22,500 37,500 11,250 P 22,500 33,750 30,000 11,250 P 60,000 67,500 7,500 P67,500 71,250 7,500 The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determine the total assets of the partnership.
On March 1, 20x4, CC and FF formed a partnership with each contributing the following assets: CC FF Cash... P 30,000 P70,000 Machinery. 25,000 75,000 Building.. 225,000 ******* Furniture and fixtures... 10,000 The building is subject to a mortgage loan of P90,000, which is to be assumed by the partnership agreement provides that CC and FF share profits and losses 30 percent and 70 percent, respectively. On March 1, 20x4, the capital account of FF would showa balance of:
Exercise 3-8. Distribution of Net Income to partners On March 1, 2023 Glenda and Harry formed GH Partnership with initial investment of P800,000 and P1,200,000, respectively. Glenda is appointed as the managing partner. The articles of co-partnership provides that profit or loss shall be distributed accordingly: 10% interest on original capital contribution ratio. Monthly salary of P10,000 and P5,000 respectively for Glenda and Harry. . Glenda shall be entitled to bonus equivalent to 10% of net income after interest, and salary. The remainder shall be distributed in ratio of 4:6 for Glenda and Harry, respectively. ● For the year ended December 31, 2023, the partnership reported net income of P1,000,000. Required: Compute for the share in net income of Glenda for the year ended December 31, 2023.
2. A and B formed a partnership. The following are their contributions: (in the picture below) Requirement: Provide the journal entry to record the contributions of the partners in the partnership books. A B Cash 500,000 Accounts receivable 100,000 Building Total 600,000 700,000 700,000 A, capital B, capital Total 600,000 700,000 600,000 700,000 Additional information: • The accounts receivable includes a P20,000 account that is deemed uncollectible. • The building is over-depreciated by P50,000. • The building has an unpaid mortgage P100,000, which is assumed by the partnership. Option 1 Clear selection
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)
Problem 1: On January 1, 20x1, Rody and Noy formed a partnership. Rody and Noy contributed the following assets at formation: Rody Noy Cash 25,000 37,500 Inventory 18,750 Building 50,000 Equipment 18,750 The building is subject to a P12,500 mortgage, which was assumed by the partnership. They share profit and loss in the ratio of 60:40. Assuming Rody will invest (withdraw) cash so that his capital balance will equal to his profit and loss ratio, what is the total asset of the partnership after formation? (The correct answer is 246,875 but I need a solution/explanation)
FINANCIAL ACCOUNTING AND REPORTING LEARNING MODULES 11. Under the bonus method, the asset contribution of the partner receiving a bonus is debited at a. fair value b. an increased amount with a corresponding decrease to the other partner's asset 12. Qand R formed a partnership. Q contributed cash of P500,000 while R contributed land with a carrying amount of P400,000 and a fair value of P800,000. The land has an unpaid mortgage of P200,000 which is assumed by the partnership. How much is the correct valuation of R's capital immediately after the partnership formation? a. P400,000 b. P500,000 C. P600,000 d. P800,000 contributions c. a decreased amount with a corresponding increase to the other partner's asset contributions d. bor c, depending on which partner is receiving the bonus 13. On July 1, a partnership was formed by Wand 14. Tingga contributes equipment to a B. W contributed the cash. B previously a sole proprietor, contributed property other than cash including realty subject…
The following is the current balance sheet for a local partnership of doctors: Cash and current assets $ 30,000 Liabilities $ 40,000 Land 180,000 A, capital 20,000 Building and equipment (net) 100,000 B, capital 40,000 C, capital 90,000 D, capital 120,000 Totals $ 310,000 Totals $ 310,000 The following questions represent independent situations: E contributes $42,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances?
D, E and F are partners sharing profits and losses in the ratio 5:3:2, respectively. The December 31, 2019 balance sheet of the partnership before any profit allocation is summarized as follows: ASSETS: Cash 90,000 Inventories 40,000 Furniture & fixtures – net 50,000 Patent 15,000 Total assets 195,000 LIABILITIES AND CAPITAL: Accounts payable 4,000 Loan from F 3,000 D, capital 70,000 E, capital 60,000 F, capital 30,000 F, drawings (2,000) Income summary 30,000 Total liabilities and capital 195,000 On January 1, 2020, F has decided to retire from the partnership and by mutual agreement among the partners, the following have been arrived at: Inventories amounting to 5,000 is considered obsolete and must be written off. Furniture and fixture should be adjusted to its current value of 65,000. The patent is considered worthless and must be written off immediately before the…
Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $15,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $3,500.Prepare the entry to record Nichols’s investment in the partnership, assuming the equipment has a fair value of $4,000. What is the account title and explanation? what is debit? what is credit?