Total Assets 100,000 Total Liabilities 40,000 Lorna 10,000 Amy 20,000 Veronica 30,000 On December 31, 2018, Lorna decided to retire from the partnership. However, before the distribution of cash to Lorna, the following data errors were discovered during the pre-retirement audit

Total Assets 100,000 Total Liabilities 40,000 Lorna 10,000 Amy 20,000 Veronica 30,000 On December 31, 2018, Lorna decided to retire from the partnership. However, before the distribution of cash to Lorna, the following data errors were discovered during the pre-retirement audit

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section: Chapter Questions

Problem 1AFE

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On December 31, 2018, the unadjusted Statement of Financial Position of LAV Partnership shows the following data with profit and loss sharing agreement of 2:3:5. Total Assets 100,000 Total Liabilities 40,000 Lorna 10,000 Amy 20,000 Veronica. 30,000 On December 31, 2018, Lorna decided to retire from the partnership. However, before the distribution of cash to Lorna, the following data errors were discovered during the pre-retirement audit: • During the year, machinery was over depreciated by P15,000. • The net income for the year is overstated by P5,000. After the adjustment, Lorna received P15,000 for her capital interest. What is the capital of Amy after Lorna’s retirement? A. 27,500 B. 23,000 C. 21,875 D. 20,000
Kim, Nicolas, and Troy are general partners in KNT Partnership sharing profits and losses in the ratio of 2:4:4, respectively. The partnership suffered financial distress and the partners decided to liquidate the partnership in December 2019. Accounts, after revaluation, adjustment, and correction, had the following ledger balances: Cash P 90,000 Accounts Receivable 205,000 Allowance for Doubtful Accounts 5,000 Merchandise Inventory 180,000 Equipment Accumulated Depreciation Equipment Accounts Payable Kim, Loan [Loan Payable - Kim] Troy, Loan [Loan Payable Troy] Kim, Capital Nicolas, Capital Troy, Capital 600,000 102,000 182,000 18,000 90,000 100,000 213,000 365,000 For the independent cases that follow in the course of winding up, prepare a statement of liquidation and necessary journal entries to record the liquidation process: A. The entire net receivable was collected, all inventories were sold at cost, and equipment was sold at its carrying value. B. Only 90% of net receivable was…
1.) On December 31, 2018, the unadjusted Statement of Financial Position of LAV Partnership shows the following data with profit and loss sharing agreement of 2:3:5.Total Assets 100,000 Total Liabilities 40,000 Lorna 10,000 Amy 20,000 Veronica 30,000On December 31, 2018, Lorna decided to retire from the partnership. However, before the distribution of cash to Lorna, the following data errors were discovered during the pre-retirement audit:• During the year, machinery was over depreciated by P15,000.• The net income for the year is overstated by P5,000.After the adjustment, Lorna received P15,000 for her capital interest.What is the capital of Amy after Lorna’s retirement?A. 27,500 C. 21,875B. 23,000 D. 20,000 2.) The total of the partners’, capital accounts was P110,000 before the…
Capital balances in Grouper Co, are Dene S64,000, Aneta $38,200, and Harriet $25,500. The partners share income equally. Harriet receives $31,400 from partnership assets in withdrawing from the firm. Journalize the withdrawal of Harriet. (Credit account titles are automaticàlly indented when the omount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
The following balances as at October 31, 2016 for the Partnership of Kathy, Lilia and Minda were as follows: Cash P50,000 Non-cash assets 400,000 Liabilities 15,000 Kathy, Capital 127,500 Lilia, Capital 82,500 Minda, Capital 225,000 Kathy has decided to retire from the partnership on October 31. The estimated profit of October 31 is P100,000. Their profit and loss ratio is 3:3:4 to Kathy, Lilia and Minda, respectively. Required: - Compute for the Total Partners Equity after dissolution. - Compute New Capital Accounts of Remaining partner using Bonus Method and Revaluation Method under the following INDEPENDENT cases: a. Kathy will be paid by the partnership for P170,000 b. Kathy will be paid by the partnership for P100,000
Adjani, Malcolm, and Shanice have been in partnership for over forty years. They are now ready to retire and have decided to dissolve the partnership on March 31, 2021. The balance sheet at that date stood as follows: iii. iv. ASSETS Non-current assets Buildings Furniture Statement of Financial Position as at 31 March Current assets Inventory Trade receivables Allowance for doubtful accounts A. Bank Total current assets Total assets EQUITY AND LIABILITIES Capital -Adjani Capital - Malcolm Capital - Shanice C. Current a/c - Adjani Current a/c - Malcolm Current a/c - Shanice Additional information: Long-Term Liabilities Loan Current Liabilities Creditors Required: Prepare the following: a. Buildings realized $180,000 b. Debtors $233, 600 c. Inventory $83,000 Realization account B. Partners' capital accounts $ Bank account 2020 i. Adjani took over the furniture at an agreed value of $10,000 ii. Of the remaining assets: 250,000 15,000 $ 50,000 200,000.00 3,000 12,000.00 212,000.00 83,000…
The partnership of Anthony and Davis had an unprotitable year and agreed to liquidate their business on December 31, 2019. The Statement of Financial Position as of December 31, 2019 is presented below: ASSETS P 1,000 Cash P 80,000 20,000 Accounts Receivable Less Allowance for Bad Debts Merchandise Inventory Prepaid Advertising Office Equipment Less Accumulated Depreciation TOTAL ASSETS 60,000 50,000 2,000 P 100,000 60,000 40.000 P 153,000 LIABILITIES AND EQUITY Accounts Payable Notes Payable (due October 31, 2020) Anthony, Capital Davis, Capital P 20,000 86,000 30,000 17,000 P 153,000 TOTAL LIABILITIES AND EQUITY The information concerning liquidation are as follows: 1. Accounts receivable's net carrying value plus 20% of the estimated bad debts were collected. 2. Merchandise inventory were realized for P 25,000 3. The contract for Prepaid Advertising has a cancellation value of P 800. 4. Office Equipment were realized equal to 60% of their book value. 5. Unrecorded Accounts Payable…
On July 1, 2019, Lola wants to retire from JKL Partnership. The Statement of Financial Position of JKL Partnership before closing on that date shows the following: Cash 148,000 Receivables, net 72,000 Equipment, net 270,000 Prepaid expenses 60,000 Total assets 550,000 Liabilities 90,000 Jose, Capital 200,000 Kiko, Capital 96,000 Lola, Capital 84,000 Income summary 80,000 Total liabilities and equity 550,000 Jose, Kiko and Lola share profits and losses in the ratio 5:3:2, respectively. The partners agreed to write-off the prepaid expenses and to adjust the equipment to its fair value of 230,000. Lola is paid 110,000 cash for his total interest. What is the balance of each remaining partner’s account after Lola’s retirement?
See the problem in the photo. On May 31, 2018, with the consent of Rivadelo, Del Mundo, and Samson:a. Galvan retired from the partnership and was paid P50,000 cash in full settlement of his interest in thepartnership.b. Mamitag was admitted to the partnership with a P20,000 cash investment for a 10% interest in the net assets ofthe partnership. No goodwill will be recognized. Prepare the journal entries to record the foregoing events.
Ahmed, Amir and Almutaz are partners sharing profits and losses in the ratio of 1:1:1 respectively. Almutaz retires from the firm on 1st May 2020. After his retirement, his capital account shows a credit balance of RO 200,000 after necessary adjustments made. Identify from the following which journal entries the partnership firm pass, When the amount due is not paid immediately. a. Almutaz Capital A/c Dr 200,000 To Bank A/c Cr 50,000 To Almutaz Loan A/c Cr 150,000 O b. Almutaz Capital A/c Dr 200,000 To Bank A/c Cr 200,000 c. Almutaz Capital Dr 200,000 To Almutaz Loan A/c Cr 200,000 O d. None of the options
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2023: Account balances December 31, 2023 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. David Olena Accum. Deprec. Accounts Danny Notes Wallace, Dunn, Lin, Equipment Equipment Payable Payable Capital Capital Capital $19,300 $161,000 $92,000 $7,300 $15,000 $34,000 $17,000 $15,000 Cash Required: 1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Account balances December 31, 2023 Sale of equipment Balance Payment of liabilities Balance Cash Equipment Accum. Deprec. Equipment $ 19,300 $ 161,000 $ 59,000 161,000 322,000 $ $ 78,300 $ $ 78,300 $ 322,000 $ Accounts Payable 92,000 $ 92,000 184,000 $ 184,000 $ Notes Payable…
On October 31, Sally retires from the partnership of Sally, Blake, and Taylor. The partner capital balances are Sally, $36,000; Blake $47,000; and Taylor, $26,000. The profit-and-loss-sharing ratio has been 5:3:2 for Sally, Blake, and Taylor, respectively. Requirements 1. Journalize the withdrawal of Sally assuming she receives $75,000 cash. 2. Journalize the withdrawal of Sally assuming she receives $32,000 cash. ..... Requirement 1. Journalize the withdrawal of Sally assuming she receives $75,000 cash. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Oct. 31