Record the journal entry to establish the partnership

Assignment Help Accounting Basics
Reference no: EM132435838

Question -

February 1 - Brady and Manning decide to start up a partnership. Brady brings in $10 000 cash and equipment costing $60 000, with $17 000 in the accumulated depreciation account. The fair market value of the equipment is $37 000. Manning brings $54 000 in cash. They agree to an income ratio of 5:4.

December 31 - The business records a net income of $24 000, and Brady has a debit balance of $16 000 in his drawings account.

a) Record the journal entry to establish the partnership.

b) Record the entry to allocate the net income to the partners' capital accounts.

c) Record a Statement of Partners' Equity for 2014.

Reference no: EM132435838

Questions Cloud

What were the nobles complaints : What were the nobles' complaints?How did the nobles' interests differ from the king's interests? What interests did the nobles have in common with the king
Record the entry to allocate the net income : Record the entry to admit the new partner into the business. Record the entry to allocate the net income to the partners' capital accounts
Discuss the three forms of market efficiency : What it means to have efficient capital market, Discuss the three forms of market efficiency. What are the implications to corporate finance?
Discuss August Coup and the destruction of the Soviet Union : Discuss the chance will have the chance to share your impressions of the August Coup and the destruction of the Soviet Union
Record the journal entry to establish the partnership : February 1 - Brady and Manning decide to start up a partnership. Brady brings in $10 000 cash. Record the journal entry to establish the partnership
Explain the immediate effect of her deposit : Assume that Jill deposits $20,000 in cash into Welcome National Bank and the central bank has set a required reserve ratio of 10%.
Discuss the suffragettes demonstrations and imprisonment : Why should today's women know about the Suffrage Movement and the women who brought us the first wave of feminist thought and action?
What is the corporate tax rate in the countries : What is the corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally?
Government to seek contractionary fiscal-monetary options : We can expect damaging inflation to start to occur and the government to seek contractionary fiscal and monetary options.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Initial investment in net working capital

The sausage system will save the firm $256,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $59,920.

  What is the total cost of building picture frames

What is the total cost of building 8 picture frames by a new employee using the cumulative average-time method? You may use an index of -0.1520

  A firm offers terms of 335 net 50 currently two-thirds of

a firm offers terms of 335 net 50. currently two-thirds of all customers take advantage of the trade discount the

  Explain the effect the stock dividend

Effect of Stock Dividend Travanti Company has a history of paying cash dividends on its common stock. Although the firm has been profitable this year, the board of directors is planning construction of a second manufacturing plant.

  What are the consequences of leaving a large estate

What are the consequences of leaving a large estate that will be divided among their children and grandchildren

  What is the amount of bond issue costs

On January 1, 2018, Bradbay, Inc. issued 10-year, $2,000,000 face value, 6% bonds, at par. What is the amount of bond issue costs

  Explain what the acid-test ratio of a company measures

Use the following information on current assets and current liabilities to compute and interpret the acidtest ratio.

  What is the interest

On January 1, 2016, Nantucket Ferry borrowed $15,300,000 cash from BankOne, What is the interest and how do I record the interest

  Journal and the cash disbursements

Use the purchases journal and the cash disbursements journal to record these transactions. Prepare a schedule of accounts payable. There were no accounts payable on May 1.

  During the month of april macon co had cash receipts from

during the month of april macon co. had cash receipts from customers of 85000. expenses totaled 78000 and accural basis

  Assume moes southwest grill has a break-even point of

assume moes southwest grill has a break-even point of 24000 units. at this point total sales are 1800000 and total

  Cryptographic basis of the enigma machine

A 2,000-bit message is used to generate a 256-bit hash. One the average, how many other messages could be expected to generate the same hash value? What does this tell us about the length of a hash as compared to the length of the message?

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