User Account

All Pages

Prepare the journal entry to record jeffrey entrance

Assignment Help Accounting Basics
Reference no: EM131568479

Q1. The Distance Plus partnership has the following capital balances at the beginning of the current year:

Each of the following questions should be viewed independently.

a. If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

b. If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

c. If Sergio invests $72,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

Q2. A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabilities $240,000; Nixon, Capital (50 percent of profits and losses) $200,000; Hoover, Capital (20 percent) $120,000; and Polk, Capital (30 percent) $90,000. Each of the following questions should be viewed as an independent situation:

a. Grant invests $80,000 in the partnership for an 18 percent capital interest. Goodwill is to be recognized. What are the capital accounts thereafter?

b. Grant invests $100,000 in the partnership to get a 20 percent capital balance. Goodwill is not to be recorded. What are the capital accounts thereafter?

Q3. The Prince-Robbins partnership has the following capital account balances on January 1, 2015:

Prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to Robbins after interest of 10 percent is given to each partner based on beginning capital balances.

On January 2, 2015, Jeffrey invests $37,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 10 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2015, the partnership reports a net income of $15,000.

a. Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2015.

b. Determine the allocation of income at the end of 2015.

Reference no: EM131568479

Questions Cloud

Why is statement of cash flows divided into three sections : Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections?
Calculate the mc of producing an additional cycle : Calculate the MC of producing an additional engine. Calculate the MC of producing an additional cycle. Find the firm's profit maximizing quantity and price.
Integrating the field of developmental psychology : Analyze that developmental stage from the point of view of at least three developmental theorists
Explain difference in methods of accounting for expenditure : Also, give an example of each and explain the difference in the method of accounting for each expenditure.
Prepare the journal entry to record jeffrey entrance : Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2015. Determine the allocation of income at the end of 2015
Describe human beings across the life span and label : human beings across the life span and Label them according to whether they represent biological, cognitive and/or psychosocial / socioemotional changes
Explain why preferred stock is referred to as preferred : Write a 250- to 350-word paper explaining why preferred stock is referred to as preferred and what some of the features added to preferred stock are that make.
Cultural differences in communication : Consider the best ways of working together using what you know about your team's cultural differences. Think of how you might begin and end this meeting.
Recommend policies to avoid financial statement fraud : In this assignment, you will recommend policies to avoid financial statement fraud and ensure the quality of financial statements.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Full costs of running the business

Every sale must bear its share of the full costs of running the business. If we sell below our full cost,we'll be out of business in no time." What do you thinkof this remark?

  Why have strategic buyers traditionally

Why have strategic buyers traditionally been able to out bid financial buyers in auctions?

  Write short note on sampling risk

Write short note on: Sampling Risk.- or While planning the audit of ABC Ltd. you want to apply sampling techniques.- What are the risk factors you should keep in mind ?

  Drakes sales manager is convinced that if the company had

here is drake companys income statement for the most recent year sales 26000 units........................... 650000

  Narrowed down investment decision to three proposals

Money-Maker Hedge fund has narrowed down their investment decision to three proposals from which two are to be selected. The investment amounts, estimated annual cash flows, and estimated salvage values for the three proposals are shown below. A..

  Share partnership losses

Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Kasi's basis in the partnership interest is:

  Flip inc determines that 54000 pounds of direct materials

flip inc. determines that 54000 pounds of direct materials are needed for production in july. there are 3200 pounds of

  If fixed costs are 40500 per period variable costs are

if fixed costs are 40500 per period variable costs are 12.50 per unit are revenue is 20.00 per unit how many units must

  Prepare the general journal entries to record each of these

candro corp. began operations on may 12010 and completed the following transactions during its first month of

  Explain a few of the issues and considerations businesses

explain a few of the issues and considerations businesses should have when it comes to selection of long-term

  The company will continue to incur the total amount of its

diego company manufactures one product that is sold for 71 per unit in two geographic regions-the east and west

  Unadjusted trial balance

Wecker Company's year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be 1.5% of accounts receivable.

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