User Account

All Pages

Journalize the withdrawal of irving from the partnership

Assignment Help Accounting Basics
Reference no: EM132727206

Cavalier Accountants is a partnership with three partners. On February28, 2018, the three partners, L. James, K. Irving, and K. Love, have capital balances of $85,000, $72,000, and $43,000 respectively. The profit and loss ratio is 4:3:1. On March 1, 2018, Irving withdraws from the partnership and they agree to pay him $90,000 cash from the partnership assets.

  • After Irving leaves, James and Love agree to a 4:2 profit ratio. During the year ended February 28, 2019, the partnership earns a profit of $24,000. Neither James nor Love makes any withdrawals because the partnership is short of cash after paying Irving. On March 1, 2019, James and Love agree to admit J. Cole to the partnership with a 45% interest for $75,000 cash. After Cole is admitted, the new profit ratio will be 4:2:5 for James, Love, and Cole, respectively.

Problem a) Journalize the withdrawal of Irving from the partnership.

Problem b) What are the balances in James' and Love's capital accounts after Irving leaves the partnership?

Problem c) Prepare the journal entry to close the income summary account on February 28, 2019.

Problem d) What is the total partnership capital on March 1, 2019, prior to admitting Cole?

Problem e) Prepare the journal entry to record the admission of Cole into the partnership.

Problem f) What is the balance in each of the partners' capital accounts after Cole is admitted to the partnership?

Reference no: EM132727206

Questions Cloud

Make journal entries to record the revaluation : The carrying amount of the asset will he recovered through use. Make journal entries to record the revaluation and related tax consequences.
Which tax legislation is primarily considered : In the U.S. Congress, tax legislation is primarily considered by which of the following? he House Finance Committee and the Senate Taxation Committee
What other stakeholders are involved in implementing policy : What other stakeholders are involved in implementing policy, strategy, or doctrine that address your topic area(s) - National Security Strategy
What type of lease is this for youngsun kim corporation : Prepare the required Journal entries for 20X1 and 20X2 for the Huaqiang Huang Corporation. What type of lease is this for Youngsun Kim Corporation?
Journalize the withdrawal of irving from the partnership : What are the balances in James' and Love's capital accounts after Irving leaves the partnership? Journalize the withdrawal of Irving from the partnership
Calculate the ending balance of each phone accounts : Calculate the ending balance of each phone accounts after journal entries are posted utility expense $365 accounts payable 3 and 65 hours number
Was it the result of satisficing or intuition : Decision making is the process of identifying and choosing alternative courses of action. While we want to make rational decisions, sometimes we don't-sometimes
Prepare the working paper eliminating entries related : Sketchy Shoes is a subsidiary of Pacific Brands. Prepare the working paper eliminating entries related to these intercompany transactions at December 31, 2017.
Make the financial statements present fairly : Make the financial statements present fairly, in all material respects, the financial position of ABC Company as at December 31, 2012, and the results

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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