Max nat and roberta formed a partnership to operate a

Reference no: EM13596715

Max, Nat and Roberta formed a partnership to operate a dry-cleaning business. They agreed to share initial capital and subsequent income in a 3:2:1 ratio. Each partner's contributions to the new venture are listed next.
Max: $20,000 cash, dry-cleaning equipment worth $150,000 and the ability to keep the equipment in good operating condition.
Nat: $40,000 cash and extensive experience in the dry-cleaning business.
Roberta: $9,000 cash and a 2-year $54,000 note, payable to the firm, with 12 percent interest on the unpaid balance.

(a) Record the formation using the goodwill approach.
Cash - $69000
Note receivable - $54000
Equipment - $150000

Goodwill - $$ ?
Capital - Max -- $$?
Capital - Nat --$$
Capital - Roberta -- $$

(b) Record the formation using the bonus approach.
Cash - $69000
Note receivable - $54000
Equipment - $150000

Capital - Max -- $$?
Capital - Nat --$$
Capital - Roberta -- $$

Reference no: EM13596715

Questions Cloud

Surf beach state college sbsc has a business school with : surf beach state college has a business school with three products undergraduate degrees graduate degrees and executive

Prior to the closing of the overapplied or underapplied : hults corporation has provided data concerning the companys manufacturing overhead account for the month of november.

A manufacturing company prepays its insurance coverage for : a manufacturing company prepays its insurance coverage for a three-year period. the premium for the three years is 2700

Assume instead that the existing partners all of whom : following is the condensed balance sheet of martinez oneill and clemens partners who share profits or losses in the

Max nat and roberta formed a partnership to operate a : max nat and roberta formed a partnership to operate a dry-cleaning business. they agreed to share initial capital and

Greivell manufacturing company has two production : greivell manufacturing company has two production departments cutting and assembly. july 1 inventories are raw

During august the company produced 6000 units of product : a company established a direct material standard of 2 pounds of material at a cost of 6 per pound for unit produced.

St marks hospital contains 450 beds the average occupancy : st. marks hospital contains 450 beds. the average occupancy rate is 80 per month. in other words on average 80 of the

Store equipment is purchased on january 1 2002 at a cost of : part 1 store equipment is purchased on january 1 2002 at a cost of 14000 and 1000 was spent on its installation. the

User Account

All Pages