College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 19, Problem 8SPA
1.
To determine
Prepare the general
2.
To determine
Prepare the necessary journal entry by assuming that Person D is paid $50,000 for the book value of Person D’s capital account.
3.
To determine
Prepare the general journal entry for the partnership.
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Apel, Ere and Inie have been in partnership since school days, sharing profits and losses in the ratio 3:2:1. On 31/12/2020, they have decided to dissolve their partnership. Below is their last statement of financial position prior to dissolution of the partnership.
Statement of financial position as at 31/12/2020.
Non-current asset.
Premises 150000
Machinery 36000
Motor vehicles 14000
200,000
CURRENT ASSETS
Inventory 11000
Trade receivable 7600
Bank 1200 19800
Total Assets 219800
Liabilities & Capitals
Trade payables 6400
Capital…
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as
of December 31, 2023:
Account balances December 31, 2023
Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on
January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.
David
Olena
Accum.
Deprec. Accounts
Danny
Notes Wallace, Dunn,
Lin,
Equipment Equipment Payable Payable Capital Capital Capital
$19,300 $161,000 $92,000 $7,300 $15,000 $34,000 $17,000 $15,000
Cash
Required:
1. Complete the schedule. (Negative answers should be indicated by a minus sign.)
Account balances December 31, 2023
Sale of equipment
Balance
Payment of liabilities
Balance
Cash
Equipment
Accum.
Deprec.
Equipment
$ 19,300 $ 161,000 $
59,000
161,000
322,000 $
$ 78,300 $
$ 78,300 $
322,000 $
Accounts
Payable
92,000 $
92,000
184,000 $
184,000 $
Notes
Payable…
Admission of a New Partner: David Breck has a capital balance of $20,000 and he sells one half of his partnership interest to Cris Davis for $18,000 on January 4th, 2003. Breck is selling a $10,000 recorded interest in the partnership. Write the journal entry for this transaction.
Admission of a new partner : David Breck decides that he would like to remain in the business, and instead Cris Davis invests $18,000 cash in the business. Record the journal entry for this transaction.
Chapter 19 Solutions
College Accounting, Chapters 1-27
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
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