User Account

All Pages

What is the equity of each of the remaining partners

Assignment Help Accounting Basics
Reference no: EM13488075

You can choose whether to admit a new partner or have a partner retire.

Include a narrative as described below.

Admission of a new partner

1. Include in the narrative: Who is the new partner? What was he/she doing before? Why was he/she invited to join the partnership? How much is the new partner contributing and what will be his or her share of partnership equity? What is the new profit sharing agreement?

2. What was the equity of the partnership before admission of the new partner? (If it is the day after Part C it will be the same. If it is later it will be different. Ensure it is not long afterwards). Prepare a worksheet to show the calculation of the new partner's capital and any bonus to or from the existing partners.

3. Prepare a journal entry to admit the new partner. Include a narration.

4. What is the equity of each partner and of the partnership after the admission of the new partner?

OR

Retirement of a partner

1. Include in the narrative: Who is retiring from the partnership? Why is he/she retiring? (Not working any more, moving away, dissatisfied with the other partners, setting up a new business etc). Is the retiring partner being paid any goodwill? How much? Or is the retiring partner leaving some equity behind? Why and how much?

3. Revalue/devalue at least one some partnership asset.

4. Calculate the equity owing to the retiring partner.

5. Prepare a journal entry to account for the payment to the retiring partner including bonus to or from the remaining partners. Include a narration.

6. What is the equity of each of the remaining partners and of the business after settlement to the retiring partner?

 

Reference no: EM13488075

Questions Cloud

What was the initial temperature of the copper : 10.0g of aluminum at 200?C and 22.0g of copper are dropped into 42.0cm3 of ethyl alcohol at 15?C. What was the initial temperature of the copper
What is the net rate of heat loss on a chilly : Radiation from the head is a major source of heat loss from the human body. Model a head as a 20-cm-diameter, 20-cm-tall cylinder with a flat top. what is the net rate of heat loss on a chilly
Compute the partnerships ordinary income : Compute Mark's and Pamela's ending basis in their partnership interests assuming their beginning balances are $150,000 each.
Determine the heat-loss rate through the slab : A 11m ×13m house is built on a 15cm -thick concrete slab. What is the heat-loss rate through the slab
What is the equity of each of the remaining partners : Prepare a journal entry to account for the payment to the retiring partner including bonus to or from the remaining partners. Include a narration.
Find the ratio of their average densities : The free-fall acceleration on the surface of Neptune is about one and one half times that on the surface of the Earth. Find the ratio of their average densities
What date did business commence : Write the details of each partner's contribution in narrative form. At least one of the partners must have contributed more than just cash. If other assets are introduced, they must be realistic. Explain where they came from if necessary.
Calculate the equity owing to the retiring partner : What is the equity of each of the remaining partners and of the business after settlement to the retiring partner?
Obtain the speed of the cart : A 500kg cart is rolling to the right at 3.70m/s. What is the speed of the cart if the man suddenly starts running to the left with a speed of 8.00 m/s relative to the cart

Reviews

Write a Review

Accounting Basics Questions & Answers

  Income tax journal entry for fairfax company

Fairfax Company had a balance in Deferred Tax Liability of $840 on December 31, 2014, resulting from depreciation timing differences. Make the income tax journal entry for the Fairfax Company for December 31, 2014.

  Advantages of recording system in small business

Why the small business need recording system in their business. What are the advantages of recording system in small business

  Discuss the purpose of the lcm rule and the accounting

the lower of cost or market lcm rule is used in the valuation of inventories. the lcm rule explains that if the

  Mucky corporation was just formed the given accounts of

mucky corporation was just formed. the following accounts of mucky corporation with code letters are needed to record

  Consequences of improper use of standard costs

There are several potential problems that can occur from the improper use of standard costs. Labor quantity standards and efficiency variances assume that production is labor-paced.

  Statements concerning measurement of gains and losses

In the accounting for forward exchange contracts, gains and losses are measured usind either spot or forward rates. Which of the following statements concerning measurement of gains and losses is true?

  Explain the distinction between deductions for agi and

discussion topic what is the distinction between deductions for agi and deductions from agi and why should this be

  Problem regarding lease or buy

Lease or buy: I can lease a building for $10,000 or buy for $800,000. The weighted average cost of capital is 12%. Which is cheaper buy or lease?

  On august 31 kravsnik company receives its bank statement

on august 31 kravsnik company receives its bank statement. the company deposits its receipts in the bank and makes all

  Problem related to leasing a copier

Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of $2,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% ..

  Company report as stockholder sequity?

Olmsted Company has the following items: common stock, $720,000; treasury stock, $85,000; deferred taxes, $100,000 and retained earnings, $363,000. What total amount should Olmsted Company report as stockholders' equity?

  Company acquistion-purchase and pooling methods

Axel Corporation acquires 100% of the stock of Wheal Company on December 31, Year 4. The following information pertains to Wheal Company on the date of acquisition:

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