Dennis Devlin, Gary Freemont, and Jean London started a partnership to operate a management consulting business. The
Question:
Dennis Devlin, Gary Freemont, and Jean London started a partnership to operate a management consulting business. The partnership (DFL Partners) had the following transactions:
2015
Jan. 2 Devlin, Freemont, and London formed the partnership by signing an agreement that stated that all profits would be shared in a 3:2:5 ratio and by making the following investments:
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Dec. 31 The partnership reported net income of $252,000 for the year.
2016
Jun. 7 Devlin and London agreed that Freemont could sell his share of the partnership to André Hughes for $390,000. The new partners agreed to keep the same profit-sharing arrangement.
Dec. 31 The partnership reported a net loss of $300,000 for the year.
2017
Jan. 3 The partners agreed to liquidate the partnership. On this date the balance sheet showed the following items, all at their normal balances:
Cash.............................................................................................. $ 78,000
Accounts receivable................................................................... 1,476,000
Allowance for uncollectible accounts...................................... 72,000
Office furniture........................................................................... 360,000
Computer equipment ................................................................. 600,000
Accumulated amortization (total) ............................................ 180,000
Accounts payable ........................................................................ 1,440,000
The assets were sold for the following amounts:
Accounts receivable .................................................................... $ 720,000
Office furniture ............................................................................ 390,000
Computer equipment ................................................................. 360,000
Devlin and Hughes both have personal assets, but London does not.
Required
Journalize all the transactions for the partnership.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
Step by Step Answer:
General Journal DATE 2015 ACCOUNT TITLES AND EXPLANATIONS POST REF DEBIT CREDIT Jan 2 Cash 204000 Accounts Receivable 390000 Office Furniture 66000 Co...View the full answer
Horngrens Accounting
ISBN: 978-0133855388
10th Canadian edition Volume 2
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
