Reference no: EM132539794
A- Sierra and Jenson formed a partnership. Sierra contributed $25,000 cash and accounts receivable worth $11,000. Jenson's investment included cash, $5,000; inventory, $18,000; and supplies, $1,000. Prepare the journal entries to record each partner's investment in the new partnership.
B- On January 2, 2018, Smith and Jones agree to accept Johnson as a partner upon his investment of $60,000 cash in the partnership. Johnson is to receive a 20% ownership interest in the new partnership. Any bonus is attributable to the existing partners and is shared equally. The equity of Smith and Jones $174,000. Calculate the Johnson's equity share and prepare journal entries .
C- S, M and Z form a partnership and agree to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $ 2,000 to S and 1,500 $ to Z , Capital balances on January 1 were as follow : S $ 40,000 , M $25,000 and Z $30,000 . Required : 1- Calculate the net income ( loss ) allocation to each partner if the Net losses for the year is $ 15,100 and Journalize the allocation of net losses .
After you solve the questions your answer must include the following items :
Question 1: Explain in details the journal entries ( why its recorded in debit or credit side ) and the nature of account Dr or Cr and its classification Assets , liabilities , owner's equity , Revenue or expenses .
Question 2: Define partnerships and explain its types , characteristics and compare it with similar organizations .
Question 3: How to form a partnership in Egypt - legally and financially.
Question 4: Explain the methods of profits and losses allocation . - Illustrate how the partners can admit or withdraw from the partnerships.
Question 5: Define The Fair value and re-evaluation for assets and liabilities .
Question 6: Explain how can grant a bonus to old and new partner.
Question 7: What are the steps of liquidation and its accounting methods ?
Question 8: How to evaluate the partnerships performance by ratios and explain its indications ?