Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 15, Problem 7Q
On February 3, 2016 Sam Singh invested $90,000 cash for a 1/3 interest in a newly formed
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On 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 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?
On May 1, 2018, Jose and Pedro formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Jose contributed a computer that cost himP50,000. Pedro contributed P200,000 cash. The computer was sold for P55,000 on May 1, 2018 immediately after the formation of the partnership. What amount should be recorded in Jose’s capital account on formation of the partnership?a. P55,000 b. P51,500 c. P60,000 d. P50,000
Chapter 15 Solutions
Principles of Accounting Volume 1
Ch. 15 - A partnership ________. A. has one owner B. can...Ch. 15 - Any assets invested by a particular partner in a...Ch. 15 - Which of the following is a disadvantage of the...Ch. 15 - Mutual agency is defined as: A. a mutual agreement...Ch. 15 - Chani contributes equipment to a partnership that...Ch. 15 - Juan contributes marketable securities to a...Ch. 15 - Which one of the following would not be considered...Ch. 15 - A well written partnership agreement should...Ch. 15 - What type of assets may a partner not contribute...Ch. 15 - How does a newly formed partnership handle the...
Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - When a partnership dissolves, the first step in...Ch. 15 - When a partnership dissolves, the last step in the...Ch. 15 - Prior to proceeding with the liquidation, the...Ch. 15 - Does a partnership pay income tax?Ch. 15 - Can a partners personal assets in a limited...Ch. 15 - Can a partnership assume liabilities as part of...Ch. 15 - Does each partner have to contribute an equal...Ch. 15 - What types of bases for dividing partnership net...Ch. 15 - Angela and Agatha are partners in Double A...Ch. 15 - On February 3, 2016 Sam Singh invested $90,000...Ch. 15 - Why do partnerships dissolve?Ch. 15 - What are the four steps involved in liquidating a...Ch. 15 - When a partner withdraws from the firm, which...Ch. 15 - What is the first step in a partnership...Ch. 15 - When a partnership liquidates, do partners get...Ch. 15 - Coffee Partners decides to close due to the...Ch. 15 - On May 1, 2017, BJ and Paige formed a partnership....Ch. 15 - The partnership of Chase and Chloe shares profits...Ch. 15 - The partnership of Tasha and Bill shares profits...Ch. 15 - Cheese Partners has decided to close the store. At...Ch. 15 - The partnership of Michelle, Amal, and Maureen has...Ch. 15 - The partnership of Tatum and Brook shares profits...Ch. 15 - Arun and Margot want to admit Tammy as a third...Ch. 15 - When a partnership is liquidated, any gains or...Ch. 15 - The partnership of Magda and Sue shares profits...Ch. 15 - The partnership of Arun, Margot, and Tammy has...Ch. 15 - Match each of the following descriptions with the...Ch. 15 - While sole proprietorships and corporations are...Ch. 15 - A partnership is thriving. The three partners get...
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