11-36 CHAPTER 12 Accounting for Partnerships 1. Niented $18,000 2. Niested 520,000 Instructions 2. Journalize the entry to record the division of net income for the year 2022 under each of the follow ing independent cumption 1. Net Income is $30.000. Income is shared 6:1 2. Net Income l 540.000. Niensted and olen teglven salary allowances of 515.000 and 10.000 respectively. The remainder is shared equally 3. Net Income 519.000. Each partner is allowed interest of 10% on beginning capital balance Niensted is given a 315.000 salary allowance. The remainder is shared equally Prepare a schedule showing the division of net income under emption (3) above c. Prepare a partners' capital statement for the year under sumption (3) above. P122.3(LO), AP The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following Niensted 517,700 Niensted 542,700 pewno dengidson a partir GLS Crawford Company Balance Sheet May 11, 2022 Assets Liabilities and Owners' Equity Canh 5 27.500 Notes payable S 500 Accounts receivable 25.000 Accounts payable 27.000 Allowance for doubtful counts (1.000) Salaries and was payable 2000 Inventory 34,500 Alamism, capital 33.000 Equipment 21.000 S Moyer, capital 21.000 Accumulated depreciation--equipment 15.500 P. Roper, capital 1000 3101 300 $100 SCO Loss on realization $23.000 Cash paid tomson $21,500,to Moyer 514,100 The partners share income and loss 5:12. During the process of liquidation, the following transactions were completed in the following sequence 1. A total of $51.000 was received from converting noncash assets into cash 2. Gain or loss on realization was allocated to partners. 3. Liabilities were paid in full. 4. P. Roper paid his capital deliciency 5. Cash was paid to the partners with credit balances Instructions 2. Prepare the entries to record the transactions h. Post to the cash and capital account e. Assume that Roper is unable to pay the capital deficiency 1. Prepare the entry to allocate Roper's debit balance to Jumise and Mayer 2. Prepare the entry to record the final distribution of cash. *P124 (LOA), AP AT April 9, partners' capital balances in PDL Company are Dondy 332.000 C. Lamar 54.000, and J. Piston SIR.000. The income sharing rates are 541, respectively. On May 1 the PDLT Company is formed by admitting I Terrell to the firm as a partnet Instructions lournalue the admission of Terrell under each of the following independentasumption 1. Terrell purchases of Pinkstosownership interest by paying on 310.000 in cash 2. Terrell purchases of tama's ownership interest by paying Lamar 515.000 in cash 3. Terrell Invest: 562,000 for a 30ownership Interest and bonuses are given to the old puter 4. Terrell Invest 142,000 for OL ownership Interest, which includes a bonus to the te parte b. Laman capital balances 112.000 after admitting Terrell to the partnership bylovestment Lama's ownership Interest is 2011 of total partnership capital what were (1) Termell cash Love ment and the bonus to the new partner Jump unded 3.1. Terrell 9.000 2 Terrel 516.000 3. Terrel 5.000 4. Terrell $45.000 12-36 CHAPTER 12 Accounting for Partnerships 1. Niensted 518,000 2. Niensted $20.000 3. Niensted $17,700 Instructions a Journaline the entry to record the division of net income for the year 2022 under each of the follow ing independent assumptions 1. Net Income is $30,000. Income is shared 63:1. 2. Net income is $40,000. Niensted and Bolen are given salary allowances of 515,000 and 510.000, respectively. The remainder is shared equally 3. Net income is $19.000. Each partner is allowed interest of 10% on beginning capital balances Niensted is given a 315.000 salary allowance. The remainder is shared equally b. Prepare a schedule showing the division of net income under assumption (3) above. c. Prepare a partners' capital statement for the year under assumption (3) above. P12.3 (LO 3), AP The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following Niensted 542,700 Prepare entries with a capital deficiency in liquidation a partnership GLS Assets Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation--equipment Crawford Company Balance Sheet May 31, 2022 Liabilities and Owners' Equity $ 27,500 Notes payable $ 13,500 25.000 Accounts payable 27.000 (1.000) Salaries and wages payable 4.000 34,500 A Jamison, capital 33,000 21,000 S. Moyer, capital 21,000 (5.500) P. Roper, capital 3,000 S101.500 $101,500