On January 1, 2018 Jeff and Robert formed the Jeff and Robert Partnership. They made the following contributions to form the partnership: Adjusted Basis Fair Market Values Contributed by Jeff: Accounts Receivable $-0 $ 20,000 Land Used as a Parking Lot 12,000 50,000 Inventory 25.000 50,000 Contributed by Robert Cash 120,000 120,000 The parking lot had been held for nine months at the date of contribution. Within thirty days of the formation, the partnership collected the receivables and also sells the inventory for $50,000 cash. The partnership used the land for the next ten months as a parking lot then sells it for $35,000 cash. Question: Determine the amount of income or gain, if any, that the partnership would realize from the above transactions. SHOW ALL COMPUTATIONS
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- On January 1, 2020, Mr. Ann and Ms. Buoy agreed to form a partnership. The partnership contributions are as follows Mr. Ann Ms. Buoy Cash 50,000.00 120,000.00 Accounts receivable 360,000.00 1,080,000.00 Inventories 216,000.00 360,000.00 Land 1,080,000.00 Building 900,000.00 Equipment 90,000.00 90,000.00 Accounts Payable (336,000.00) (450,000.00) Capital P1,460,000.00 2,100,000.00 The partners agreed the following *The recovereable amount of the partners respective accounts receivable are P300,000 for Mr. Ann and P760,000 for Ms. Buoy *The inventory contributed by Ms. Buoy includes obselete items with recorded cost of P20,000.00 *The land has an attached mortgage of P180,000, which the partnership will assume *The equipment contributed by Ms. Buoy has a fair value of P130,000. *Mr. Ann has unrecorded accounts payable of P100,000. The partnership assumes the obligation How much is the initial capital of Ms. BuoyProblem Solving: On January 1,2018, John and Frank decided to form a partnership. At the end of the year, the partnership made a net income of P120,000. The capital accounts of the partnership show the following transactions: John, Capital Frank, Capital Dr. Cr. Dr. Cr. Jan. 1 P40,000 P25,000 a Apr. 1 P5,000 Jun. 1 10,000 Aug. 1 10,000 Sep. 1 P3,000 ta Oct. 1 5,000 1,000 Dec. 1 4,000 5,000 55. Assuming th at the partnership's net income is divided on the basis of the average capital ratio, the share of John in the profits is? 50. Assuming that the partnership's net income is divided on the basis of the average capital ratio, the share of Frank in the profits is? 57. Assuming that an interest of20% per annum is given on average capital and the balance of the profits is divided equally, the share of John in the profits shall be: 58. Assuming that an interest of 20% per annum is given on average capital and the balance of the profits is divided equally, the share of Frank in the profits…On January 1, 2019, David and Enrile decided to form a partnership. At the end of the year, the partnership had a credit balance in its income summary account of P 120,000. The capital accounts of the partnership show the following transactions below. David Balance, January 1 P 300,000 Additional Investment, July 16 80,000 Withdrawal, September 15 ( 30,000) Enrile Balance, January 1 P 250,000 Additional Investment, May 8 100,000 Withdrawal, October 15 ( 75,000) Assuming that an interest if 20% per annum is given on average capital and the balance of the profits is divided equally, how much is the share of Enrile and David in profits for the year 2019?
- Ethan and Louis had partnership and shared incomes and losses based on the agreement that gave Ethan a salary allowance of $115,000 and Louis $90,000 with any unallocated income or loss shared 3:2 Prepare the entry and at December 31, 2011. the net income having a debit balance of $80,000 Nicholas and Sarah began a partnership by investing $52,000 and $78,000. During the first year running, it had net income $180,000 A. allocation based on no agreement B. allocation based on partner initial investment C. allocation based on partnership conditions Nicholas Sarah 1) salary allowance 85000 65000 2) Interest allowance( 10% initial investment) 10% 10% 3) split rest of balance equallyOn January 01, 2020, Malachi and Haggai agreed to form a partnership. The following are their assets and liabilities. ACCOUNTS MALACHI HAGGAI Cash P 136,000 P 76,000 Accounts Receivable 88,000 48,000 Inventories 304,000 364,000 Machinery 480,000 440,000 Accounts Payable 216,000 144,000 Notes Payable 140,000 60,000 Malachi decided to pay-off his notes payable from his personal assets. It was also agreed that Haggai’s inventories were overstated by P24,000 and Malachi machinery was over-depreciated P20,000. Haggai is to invest/withdraw cash in order to receive a capital credit that is 20% more than Malachi’s total net investment in the partnership. Immediately after the formation, compute for the following: 1. Total cash of the partnership _______________ 2. Total assets of the partnership ______________ 3. Total capital of the partnership ______________On January 01, 2020, Malachi and Haggai agreed to form a partnership. The following are their assets and liabilities. ACCOUNTS MALACHI HAGGAI P 136,000 P 76,000 48,000 Cash Accounts Receivable 88,000 304,000 364,000 480,000 Inventories Machinery Accounts Payable Notes Payable 440,000 144,000 216,000 140,000 60,000 Malachi decided to pay-off his notes payable from his personal assets. It was also agreed that Haggai's inventories were overstated by P24,000 and Malachi machinery was over-depreciated P20,000. Haggai is to invest/withdraw cash in order to receive a capital credit that is 20% more than Malachi's total net investment in the partnership. Immediately after the formation, compute for the following: 1. Total cash of the partnership 2. Total assets of the partnership 3. Total capital of the partnership
- Joshua and Caleb formed partnership on May 1, 2018 and contributed the following assets: Joshua Caleb Cash P300,000 P100,000 Land 300,000 The land was subject to a mortgage of P50,000, which was assumed by the partnership. Under the partnership agreement, Joshua and Caleb will share profit and loss in the ratio of 1;2 respectively. Required: 1. Prepare journal entries to record the transactions on May 1, 2018.for each business serve as the basis for the partnership: Christine Udarbe and Vincent Trongco have been sole proprietors of separate animal relocation businesses for several years. On January 1, 2020, they form a partnership called C&V Animal Kingdom. The following balance sheets provided otal the Christine Udarbe Statement of Financial Position December 31, 2020 Assets Liabilities P46,000 Accounts payable Notes payable 30,000 Total liabilities Cash P136,800 Accounts receivable P38,80O 8,800 418,000 290,000 Less allow. for DA Office equipment Less: accum. dep. P426,800 Owner's Equity 398,000 C. Udarbe, capital 20,000 P485,200 538,000 100,000 Vehicles 438,000 Total liabilities and P912,000 owner's equity Less: accum. dep. P912,000 Total assets Vincent Trongco Statement of Financial Position December 31, 2020 Liabilities Assets P50,900 Accounts payable Notes payable P120,000 146,000 P266,000 Cash Accounts receivable P45,400 7,400 327,000 46,000 Less allow. for DA 38,000 Total…Items 34 and 35 are based on the following information: On January 2,2010, Jason and Melissa formed a partnership by contributing the following assets: Cash Accounts Receivable Merchandise Inventory Land Building Jason P ? 80,000 100,000 Melissa 34. On January 2, 2010, Melissa, Capital amounts to a. P440,000 b. P600,000 P 380,000 240,000 The Land invested by Melissa is subject to mortgage loan of P160,000, which is to be assumed by the partnership. The accounts receivable invested by Jayson are believed to be only 90% collectible. d. P1,040,000 35. Assuming that Jayson is to contribute enough cash to bring his capital equal to that of Melissa, required cash contribution of Jayson is a. P268,000 b. P420,000 d. P600,000 c. P760,000 c. P440,000
- Claire,Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets, measured at book values in their respective records, contributed by each partner: CLAIRE DOLLY ELLERY Cash 486,000 460,107 231,903 Accounts Receivable 109,620 - 141,000 Property, Plant and Equipment 2,094,390 450,000 - A part of Claire's cash contribution, P324,000, comes from personal borrowings. Also, PPE of Claire and Dolly are mortgaged with the bank for P1,458,000 and P108,000, respectively. The partnership is to assume responsibility for these PPE mortgages. The fair value of the accounts receivable contributed by Ellery is P137,000 while the PPE contributed by Dolly at this date is P510,300. The partners have agreed to share interests on a 5:3:2 ratio, to Claire, Dolly and Ellery, respectively. Required: Use Bonus and Goodwill Method in computing the Capital balances of Claire, Dolly and Ellery.Claire,Dolly and Ellery formed the CDE Partnership on September 1, 2016, with the following assets, measured at book values in their respective records, contributed by each partner: CLAIRE DOLLY ELLERY Cash 486,000 460,107 231,903 Accounts Receivable 109,620 - 141,000 Property, Plant and Equipment 2,094,390 450,000 - A part of Claire's cash contribution, P324,000, comes from personal borrowings. Also, PPE of Claire and Dolly are mortgaged with the bank for P1,458,000 and P108,000, respectively. The partnership is to assume responsibility for these PPE mortgages. The fair value of the accounts receivable contributed by Ellery is P137,000 while the PPE contributed by Dolly at this date is P510,300. The partners have agreed to share interests on a 5:3:2 ratio, to Claire, Dolly and Ellery, respectively.Nadine and Liza formed a partnership on January 1, 2019 below the details of your capital accounts for 2019: On the saviour the partnership gathered a profit of 200,000. Determine the profit ratio and the share on profits for nadine and liza on the following agreements: If agreement based on capital contributions:Nadine's Profit ratio?Nadine's Share on profit?Liza's Profit ratio?Liza's Share on profit? If agreement based on average capital:Nadine's Profit ratio?Nadine's Share on profit?Liza's Profit ratio?Liza's Share on profit?