1. Accounting for partner contributions Billy Bob and Junior want to develop a water park in Colorado. On Sept 20, 2021 Billy Bob contributes $2,000,000 cash and land with a current market value of $7,500,000. When Billy Bob purchased the land it cost $5,500,000. The partnership will also take over a Billy Bob's $3,000,000 note payable on the land. Junior contributes $2,000,000 cash and equipment with a current market value of $4,000,000. a) Journalize the partnership's receipt of assets and liabilities from Billy Bob and Junior. Date Accounts and Explanations Debit Credit b) Compute the partnership's total assets, total liabilities, and equity immediately after organizing. Use cell references. Total Assets Total Liabilities Total Equity Problem 2. Various partnership transactions Johann, Frederick, and Sebastian are in a partnership and currently have capital balances of $20,000, $37,000, and $48,000, respectively. The partnership agreement states the following instructions for the sharing of profits and losses: 1. The partners receive the following salary allowances: Johann, $25,000; Frederick, $46,000, Sebastian, zero. 2. The partners each receive 20% of their capital balance. 3. The remainder is allocated based on the partner's allocation according to their share of the capital balance. a) Determine each partner's share of year ending 2020 $80,000 net income. Net income (loss) Salary allowances: Johann Frederick Sebastian Capital allocation: Johann Frederick Sebastian Total salary and capital allocation. Net income (loss) remaining for allocation Remainder shared according to capital balance: Johann Frederick Sebastian Total allocation Net income (loss) remaining for allocation Net income (loss) allocated to each partner Johann Frederick b) Journalize the closing entry to allocate net income for the year 2020. Use cell references for the amounts. Date Accounts and Explanations Sebastian Total Debit Credit c) Johann decided to sell all of his share of the partnership to Eva for $50,000. The other partners approved. Journalize the transaction, which occurred on Jan 15, 2021. Date Accounts and Explanations d) Calculate the balance of each partner's capital account as of Jan 30, 2021. Johann, Capital Frederick, Capital Sebastian, Capital Eva, Capital Debit Credit e) Johann, Frederick, and Eva agreed to take on a new partner, Arnold. Arnold contributed $150,000 cash for a 1/4 share in the business. All partners will share profits and losses equally. Journalize the transaction to add Arnold to the new partnership as of Mar 30, 2021. Don't worry about crazy decimals. Date Accounts and Explanations Debit Credit f) On April 30, 2021, the partners decide they made a huge mistake and can't look at each other a single minute more. They liquidate the business, receiving $150,000 for all of the assets. 1) Complete the missing pieces of the company's balance sheet before the liquidation. Cash Equipment Inventory Assets Swiss Family Skaters Balance Sheet As of April 30, 2021 $ 250,000 Accounts payable 103,000 5,000 Liabilities $ 23,000 Partners' Equity Total Partners' Equity Total Assets $ 358,000 Total Liabilities and Partners' Equity $ 23,000 2) Journalize the liquidation of the business Date Accounts and Explanations Debit Credit