User Account

All Pages

Prepare the journal entries required to record ahmed

Assignment Help Financial Accounting
Reference no: EM132942781

Ali and Fatima are partners whose capital balances are $400,000 and $300,000 and who share profits 3:2. Due to a shortage of cash, Ali and Fatima agree to admit Ahmed to the firm.

Instructions:

Problem 1: Prepare the journal entries required to record Ahmed's admission under each of the following independent assumptions:

1. Ahmed invests $200,000 for a 1/4 interest. The total firm capital is to be $900,000.

2. Ahmed invests $300,000 for a 1/4 interest. Goodwill is to be recorded.

3. Ahmed purchases a 1/4 interest in the firm, with 1/4 of the capital of each old partner transferred to the account of the new partner. Ahmed pays the partners cash of $250,000, which they divide between themselves.

Reference no: EM132942781

Questions Cloud

How the events should be shown in the financial statements : Discuss how the above events should be shown in the financial statements of Trademark for the year ended 30 November 2020.
Discuss circumstances where an entity may change : Discuss circumstances where an entity may change its accounting policies, setting out how a change of accounting policy is applied and the difficulties faced
What will be the ebit if john renegotiates the contract : If John renegotiates the contract at a price of R10,00 per figurine, what will the EBIT be? John got into the novelties business almost by accident
Determine the amount that should be distributed : Nolt Ltd is a growth-oriented company, Apply the residual dividend policy and determine the amount (if any) that should be distributed as a dividend.
Prepare the journal entries required to record ahmed : Prepare the journal entries required to record Ahmed's admission under each of the Ahmed invests $300,000 for a 1/4 interest. Goodwill is to be recorded.
Calculate the parent company from the subsidiary net income : Calculate the Parent company from the subsidiary's net income? In 2019, X company (the 90%-owned subsidiary) sold merchandise to Y Company.
Prepare journal entries for y corporation to record : Prepare journal entries for Y Corporation to record the Fiscal Year 2020 operating results of X Company under the equity method.
What is the value of an american call option on xyz shares : What is the value of an American call option on XYZ shares, with an exercise price of $125 and two months to expiration? Use the binomial model
Explain how the crisis would have been prevented : Using the principles and examples from the 2008 financial crisis in the USA, critically explain how the crisis would have been prevented

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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