Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Question
Chapter 12, Problem 1QS
a)
To determine
Whether the
b)
To determine
Whether Person A’s personal assets are taken to pay for the merchandise in a general partnership.
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Students have asked these similar questions
The Calvin-Dogwood Partnership plans to form a new partnership with Alexis. The existing partnership owns inventory that was purchased for $67,900, has a current
replacement cost of $56,700, and is priced to sell for $91,400. At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to
be admitted?
a. $56,700
b. $91,400
c. $67,900
O d. $34,700
Gibbs and Reed Partnership owns merchandise that was purchased for $109,00o. The
merchandise has a current replacement cost of $90,500, and is priced to sell for $127,000.
Gibbs and Reed are admitting a new partner, Jay. At what amount should the
merchandise be recorded in the accounts of the new partnership if Jay is to be admitted
to the partnership?
a. $127,100
b. $109,000
c. $90,500
d. $127,000
e. None of the above.
QUESTION 1
Kumaresan and Cheng are watch repairmen who want to form a partnership and open a
jewellery store. An attorney prepares their partnership agreement, which indicates that assets
invested in the partnership will be recorded at their fair market value and that liabilities will be
assumed at book value.
The assets contributed by each partner and the liabilities assumed by the partnership are as the
following:
Assets
Kumaresan
Cheng
Total
40,000
52,000
4,000
1,000
20,000
30,000
20,000
3,000
500
70,000
72,000
7,000
1,500
30,000
Cash
Accounts receivable
Allowance for uncollectable accounts
Supplies
Equipment
Liabilities
Accounts payable
10,000
32,000
9,000
41,000
REQUIRED:
Prepare the journal entries necessary to record the original investments of Kumaresan and
Cheng in the partnership.
Chapter 12 Solutions
Principles of Financial Accounting.
Ch. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - The Field, Brown Snow partnership was begun with...Ch. 12 - Prob. 10QSCh. 12 - Determine whether each characteristic describes a...Ch. 12 - For each separate case, indicate which type of...Ch. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 1APCh. 12 - Prob. 2APCh. 12 - Prob. 3APCh. 12 - Prob. 4APCh. 12 - Prob. 5APCh. 12 - Prob. 6APCh. 12 - Prob. 1BPCh. 12 - Prob. 2BPCh. 12 - Prob. 3BPCh. 12 - Prob. 4BPCh. 12 - Prob. 5BPCh. 12 - Prob. 6BPCh. 12 - Prob. 12SPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Review Samsungs 1938 to 1970 history at...Ch. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 5BTN
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