Jaylin Smith and Heff Talas are forming a partnership, Vintage Leather Goods, to import merchandise from Spain.

Question:

Jaylin Smith and Heff Talas are forming a Vintage Leather Goods, to import merchandise from Spain. Smith is especially artistic and will travel to Spain to buy the merchandise. Talas is a super salesman and has already lined up several department stores to sell the leather goods.
Requirements
1. What is the purpose of the agreement?
2. If the agreement does not state the profit-and-loss-sharing ratios, how will profits or losses be shared?
3. Smith is contributing $215,000 in cash and of $35,000. Talas is contributing a building that cost Talas $95,000. The building's current market value is $120,000. Journalize the contribution of the two partners.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... 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...

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Requirement 1 The purpose of the partnership agreement is to delineate the operation of the partnership by establishing the rules of the partnership The partnership agreement should include a The name location and nature of the business b The name capital contribution and duties of each partner c The procedures for admitting new partners d The method of sharing profits and losses among the partners ...View the full answer

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