Reference no: EM132539520

A- Sierra and Jenson formed a partnership. Sierra contributed $25,000 cash and accounts receivable worth $11,000. Jenson's investment included cash, $5,000; inventory, $18,000; and supplies, $1,000. Prepare the journal entries to record each partner's investment in the new partnership.

B- On January 2, 2018, Smith and Jones agree to accept Johnson as a partner upon his investment of $60,000 cash in the partnership. Johnson is to receive a 20% ownership interest in the new partnership. Any bonus is attributable to the existing partners and is shared equally. The equity of Smith and Jones $174,000. Calculate the Johnson's equity share and prepare journal entries .

C- S, M and Z form a partnership and agree to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $ 2,000 to S and 1,500 $ to Z , Capital balances on January 1 were as follow : S $ 40,000 , M $25,000 and Z $30,000 .

Required :

1- Calculate the net income ( loss ) allocation to each partner if the Net losses for the year is $ 15,100 and Journalize the allocation of net losses .

After you solve the questions your answer must include the following items : - Explain in details the journal entries ( why its recorded in debit or credit side ) and the nature of account Dr or Cr and its classification Assets , liabilities , owner's equity , Revenue or expenses .

Question 1: Define partnerships and explain its types , characteristics and compare it with similar organizations .

Question 2: How to form a partnership in Egypt - legally and financially.

Question 3: Explain the methods of profits and losses allocation .

Question 4: Illustrate how the partners can admit or withdraw from the partnerships .

Question 5: Define The Fair value and re-evaluation for assets and liabilities .

Question 6: Explain how can grant a bonus to old and new partner.

Question 7: What are the steps of liquidation and its accounting methods ?

Question 8: How to evaluate the partnerships performance by ratios and explain its indications ?