User Account

All Pages

A partnership of attorneys in the st louis missouri area

Assignment Help Accounting Basics
Reference no: EM13376700

A partnership of attorneys in the St. Louis, Missouri, area has the following balance sheet accountsas of January 1, 2013:

Assets . . . . . . . . . . . . . . . . . $320,000        Liabilities . . . . . . . . . . . . . . . . . $120,000

Athos, capital . . . . . . . . . . . . . 80,000

Porthos, capital . . . . . . . . .. . . 70,000

Aramis, capital . . . . . . . . . . .. . 50,000

According to the articles of partnership, Athos is to receive an allocation of 50 percent ofall partnership profits and losses while Porthos receives 30 percent and Aramis, 20 percent.The book value of each asset and liability should be considered an accurate representation offair value.

For each of the following independent situations, prepare the journal entry or entries to berecorded by the partnership. (Round to nearest dollar.)

a. Porthos, with permission of the other partners, decides to sell half of his partnership interestto D'Artagnan for $50,000 in cash. No asset revaluation or goodwill is to be recordedby the partnership.

b. All three of the present partners agree to sell 10 percent of each partnership interest toD'Artagnan for a total cash payment of $25,000. Each partner receives a negotiated portionof this amount. Goodwill is recorded as a result of the transaction.

c. D'Artagnan is allowed to become a partner with a 10 percent ownership interest by contributing$30,000 in cash directly into the business. The bonus method is used to record thisadmission.

d. Use the same facts as in requirement (c) except that the entrance into the partnership isrecorded by the goodwill method.

e. D'Artagnan is allowed to become a partner with a 10 percent ownership interest by contributing$12,222 in cash directly to the business. The goodwill method is used to recordthis transaction.

f. Aramis decides to retire and leave the partnership. An independent appraisal of the businessand its assets indicates a current fair value of $280,000. Goodwill is to be recorded.

Aramis will then be given the exact amount of cash that will close out his capital account.

Reference no: EM13376700

Questions Cloud

Michael earned 10000 at the k-m resort golf club during the : michael earned 10000 at the k-m resort golf club during the summer prior to his senior year in college. he wants to
The partnership of frick wilson and clarke has elected to : the partnership of frick wilson and clarke has elected to cease all operations and liquidateits business property. a
March april and may have been in partnership for a number : march april and may have been in partnership for a number of years. the partners allocateall profits and losses on a
The following balance sheet is for a local partnership in : the following balance sheet is for a local partnership in which the partners have become veryunhappy with each
A partnership of attorneys in the st louis missouri area : a partnership of attorneys in the st. louis missouri area has the following balance sheet accountsas of january 1
Gray stone and lawson open an accounting practice on : gray stone and lawson open an accounting practice on january 1 2011 in san diegocalifornia to be operated as a
The partnership agreement of jones king and lane provides : the partnership agreement of jones king and lane provides for the annual allocation of thebusinesss profit or loss in
In 2014 mordica co issued 300000 of its 500000 authorized : in 2014 mordica co. issued 300000 of its 500000 authorized shares of 10 par value common at 35 per share. in january
On january 12014 oaken furniture co issued 700000 of 10 : on january 12014 oaken furniture co. issued 700000 of 10 bonds and received cash totaling 795141. interest is payable

Reviews

Write a Review

Accounting Basics Questions & Answers

  Identifiable assets acquired over liabilities

In a business combination in which the total fair value of the identifiable assets acquired over liabilities assumed is greater than the consideration paid, the excess fair value is:

  Determine pension expense for specific year

Pension data for Goldman Company included the following for the current calendar year: Determine pension expense for the year.

  Suburban lifestyles roi residual income

Suburban Lifestyles, Inc. has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers' lots. Suburban Lifestyles expanded into the precut housing market when it acquired Fairmont Com..

  Which reflects the appropriate length and sections

The Audit Report and Internal Control Evaluation. This paper should be posted as a Microsoft Word attachment in the Assignment Section and should adhere to APA formatting style.

  Compute the variable overhead variance

Compute the fixed overhead variance. (Indicate the effect of variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input the amount as positive value. Do not round your intermediate calculati..

  What controls should an organization

What controls should an organization like Tyco implement to ensure that such transactions do not take place in the future?

  Balance sheet and income statement for the year

Indicate the affect of the misstatement on Gentry Supplies Company's balance sheet and income statement for the year ended December 31, 2009.

  Auditor judgment or of a risk matrix

Use of auditor judgment or of a risk matrix is necessary in revising planned detection risk whenever

  Discuss allowance method and direct write-off method

Discuss the allowance method and the direct write-off method of accounting for bad debts. When is the expense for uncollected accounts receivable recognized under each method? Respond to at least two of your classmates' postings.

  Net accounting income and distributable net income

A trust has net accounting income and distributable net income (DNI) of $60,000, all from taxable sources. The trustee is required to distribute $40,000 of current income to Harry.

  Journalize the declaration of stock dividend on december

On January 1, 2008, Deweese Corporation had $ 1,000,000 of common stock outstanding. Journalize the declaration of a 15% stock dividend on December10, 2008, for the following independent assumptions

  Partnership interest at year-end

During the first year of partnership operations, JK had net taxable income of $50,000. The partnership distributed $20,000 cash to Julie. Julie's adjusted basis (outside basis) for her partnership interest at year-end is:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd