Prepare the journal entries for the formation of partnership

Assignment Help Financial Accounting
Reference no: EM132944042

Question - On January 1, 2021, Colby, Smith and Nagel formed a partnership. Colby contributes $40,000 cash, Smith contributes a small building with a fair market value of $20,000 and Nagel contributed a parcel of land valued at $20,000. When they signed their partnership agreement, they decided to share profit and losses based on a ratio of 2:1:1. On September 4, 2021, Nagel decides to leave the partnership and agrees to accepts $26,000 for her share of the partnership. 

Required - Prepare the journal entries for the formation of partnership on January 1, 2021 and the Nagel's withdrawal on September 4, 2021. You may omit explanations but include all calculations.

Reference no: EM132944042

Questions Cloud

Calculate Southfield Corporation weighted average cost : Use the following information to calculate Southfield Corporation's weighted average cost of capital: The risk free interest rate is 4%
Calculate the new confidence index : Suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.0%. Calculate the new confidence index
Submit a Bank Reconciliation Statement as at July : July bank service charge not recorded by the depositor $28. Submit a Bank Reconciliation Statement as at July 31
Why was DPCX stock overvalued or undervalued : Explain ABC's stock volatility over the last six months, which was about percent. Why was DPCX stock overvalued or undervalued
Prepare the journal entries for the formation of partnership : Prepare the journal entries for the formation of partnership on January 1, 2021 and the Nagel's withdrawal on September 4, 2021
CIS 462 Security Strategy and Policy Assignment : CIS 462 Security Strategy and Policy Assignment Help and Solution - Strayer University, USA - Homework Help - Case Study - Acceptable Use Policy
Explain the communication frame work : 1. Analyse the likely causes of resentment over the employee manual and uniforms in reference to the communication frame work discussed in the class.
Make the purchases, sales and returns entries : Make the following purchases, sales and returns entries. Ferreteria Amigos carried out the following transactions during the month of March
Who are the main competitors of Accent Group Limited : Who are the main competitors of Accent Group Limited? What five financial ratios can I use to compare Accent Group Limited to its peers over a historical period

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare a sales budget for the la store for fourth quarter

Prepare a Sales Budget for the LA store for 4th quarter of 2016 for babycakes. Present the number of units, sales price, and total sales for each month; October, November, and December, and a total for the quarter.

  Grania companys income statement

Prepare the operating activities section of the statement of cash flows using the direct method - Grania Companys income statement contained the condensed information.

  Prepare bachinos pizzas income statement and balance sheet

Prepare Bachino's Pizza's income statement, statement of owner's equity, and balance sheet. Why would Bachino's Pizza's owner set his business up as a sole proprietorship and not a partnership?

  What distinguishes a current liability

What distinguishes current liability from non-current liability? In term of current liabilities what distinguishes accrued liabilities from deferred liabilities

  Evaluate what is the value of the abandonment option

What is the value of the abandonment option? Also show when would be optional for the company to abandon this project. Show all formulas

  How much is the loss on reclassification on january

How much is the loss on reclassification on January 1, 2024? ABC Company has an equipment that has a book value of Php 384,000 as of December 31, 2019.

  Construct new manufacturing facility

Suppose your company needs to raise $10 million to construct a a new manufacturing facility. You are the Treasurer and have recommended to the CFO that the company raise $10 million by selling 30-year, $1,000 par value bonds with a coupon rate of 6% ..

  Equilibrium price and quantity after imposition of xed tax

The demand and supply functions of a good are given by P = -2Q D + 48 P =1/2Q S + 23 (a) Find the equilibrium price and quantity. (b) Graph and label the two functions on the same diagram. (c) Find the new equilibrium price and quantity after the imp..

  Find what the company before-tax cost of retained earnings

Find what the company's before-tax cost of retained earnings is? A company's share price is currently $4.90. Its most recent dividend was 60 cents per share

  Assuming a linear cost behavior pattern

At a sales volume of 50 units, the average cost is $410 per unit and the variable cost is $10 per unit. Assuming a linear cost behavior pattern, if sales double to 100 units the average cost will be:

  What is the firms disbursement float

On an average day, a company writes checks totaling $1,500. These checks take seven days to clear. The company receives checks totaling $1,800. These checks take four days to clear. The cost of debt is 9%. What is the firm's disbursement float?

  Prepare the accounting entry on july

Prepare the accounting entry on July 01, 2014 if the policy of the Tina Thi Thuy Le Corporation had been to carry the bonds at fair market value.

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!

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