User Account

All Pages

Record the admission of corrales

Assignment Help Accounting Basics
Reference no: EM132722912

Question - Give the required entries on the partnership books to record the admission of Corrales under each of the following assumptions. Support your answers with computations.

Carmen and Centeno are partners with capital balances of P160,000 and P80,000. They share profits 60%, 40%, respectively. The partners agree to admit Corrales as a member of the firm.

Assumption 1. Corrales purchases a 1/4 interest in the firm. One-fourth of each partner's capital is to be transferred to the new partner. Corrales pays the partners P60,000, which is divided between them in proportion to the equities given up.

Assumption 2. Corrales purchases a 1/3 interest in the firm. One-third of each partner's capital is to be transferred to the new partner. Corrales pays the partners P120,000, which is divided between them in proportion to the equities given up. Before Corrales admission, asset revaluation is undertaken and recorded on the firm books so that Corrales' 1/3 interest will be equal to the amount of his payment.

Assumption 3. Corrales invests P120,000 for a 1/4 interest in the firm. Asset revaluation is recorded on the firm books prior to the admission.

Assumption 4. Corrales invests P120,000 for a 50% interest in the firm. Carmen and Centeno transfer part of their capital to that of Corrales as a bonus.

Assumption 5. Corrales invests P160,000 in the firm. P40,000 is to be considered a bonus to partners Carmen and Centeno.

Assumption 6. Corrales invests P160,000 in the firm and allowed a bonus to Carmen and Centeno of P20,000 upon his admission.

Assumption 7. Corrales invests P100,000 for a 1/4 interest in the firm. The total firm capital after his admission is to be P340,000.

Assumption 8. Corrales invests P110,000 for a 1/4 interest in the firm. The total firm capital after his admission is to be P440,000.

Assumption 9. Corrales invests sufficient cash for a 1/5 interest.

Reference no: EM132722912

Questions Cloud

Calculate the profit margin for both chairs and desks : Manufacturing overhead for year 1 totaled $765,000. Based on the CFO's new policy, calculate the profit margin for both chairs and desks
Health care leaders to understand leadership style : Define leadership style and explain why it is important to for health care leaders to understand their leadership style.
Discuss the inductive and pragmatic research methods : Discuss the deductive, inductive, and pragmatic research methods. Include in your discussion examples of accounting research that used each method
Type of tools are used for big data and data analytics : I would like to know what type of tools are used for big data and data analytics.
Record the admission of corrales : Give the required entries on the partnership books to record the admission of Corrales under each of the following assumptions
Speaking with confidence : "Speaking With Confidence", describes multiple techniques that you can adopt in order to approach your speaking with more self-assuredness and calm.
Discuss the implications of illegal act by mine management : Discuss the implications of this illegal act by MINE's management. Describe the courses of action that are available to your CPA firm regarding this matter
Moral of the tale from the thousand and one nights : What is the moral of the tale from The Thousand and One Nights?
What is the net income for the current year : Selected information for GORAN Company for the current year is as follows: Cash balance, Jan 1 P130,000. What is the net income for the current year

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