8 ACCT 167 Partnership xlsx - Excel Formulas Data Review View Search EXPREP Draw Page Layout Help AutoSave On 2 File Home Insert X Cut Paste In Copy Format Painter Clipboard == = Gener Times New Roman - 11 BIU-B O A A -A Wrap Test Merge & Center - $ Alignment P13 Information Nick & Nora agree to form a partnership on January 1, 2018. Nick has operated a business a sole proprictorship for a number of years and will contribute the net assets of his business to the partnership. The 11 appraised value of the net assets in Nick's business are given below. Cash Receivables Inventory Property, plant & equipment Accounts payable Accrued liabilities Mortgage payable Net Assets 10.000 15.000 30.000 85.000 (8.000) (22,000) (40,000) 70,000 22 Nora has significant experience in marketing and will 23 contribute cash in the amount of 55,000 24 25 Nick and Nora agree to begin operations with equal capital balances. The partnership agreement also indicates 26 that the bonus method will be used to account for any changes in partner ownership The Articles of Partnership (the partnership agreement) provide that income and losses are to be allocated in 28 the following manner. 35.000 75,000 Nick is to receive a salary of Nora is to receive a salary of Interest is calculated on the beginning capital balances at a * rate of The remaining gain or loss is to be allocated to Nick and Sheet1 11% Type here to search Draw Page Layout File a Formulas Data Review View Help Home Insert X Cut [Copy Format Painter Clipboard Times New Roman 11 BIU E DU Paste A A A Wrap Text Merge & Cente Font Alignment -13 ID E F G $ 35,000 75,000 wn -- * Nick is to receive a salary of * Nora is to receive a salary of Interest is calculated on the beginning capital balances at a * rate of The remaining gain or loss is to be allocated to Nick and Nora in the ratio of 1,600 37 Each partner is provided a monthly draw of 38 39 Income for 2018 amounted to $ 260,000 40 41 On January 2, 2019, Jack joined the partnership by paying $220,000 to Nick and Nora directly. For this payment, Jack received a 42 partnership interest of 20% 65,000 44 The partnership agreement was revised to allow Jack 45 * a salary of Nick and Nora's salaries remain unchanged Interest is allowed on all partner's beginning capital balances at the rate previously stated The remaining gain or loss is to be to Nick Nora, and Jack in the ratio of: 3:2:5 1,650 52 Each partner is provided a monthly draw of 53 54 Income for 2019 amounted to 285.000 Sheet1 Ready Type here to search AutoSave of 6 File Home 8 Draw ACCT 167 Partnership .xlsx - Excel Formulas Data Review View Search EXPREP Insert Page Layout Help X Cut Copy 11 === Times New Roman BIU - AA A Paste Wrap Text Merge & Center - Gen $ 3 Format Painter Clipboard Alignment 13 A B C D D -1 on January 2, 2019, Jack joined the partnership by paying $220.000 to Nick and Nora directly. For this payment, Jack received a 12 partnership interest of 20% 65,000 44 The partnership agreement was revised to allow Jack * a salary of Nick and Nora's salaries remain unchanged * Interest is allowed on all partner's beginning capital balances at the rate previously stated The remaining gain or loss is to be to Nick Nora, and Jack in the ratio of: 3:2:5 S7 52 Each partner is provided a monthly draw of 1.650 285.000 54 Income for 2019 amounted to 55 On January 1, 2020. Nick decided to retire and sold his partnership interest directly to Jill. Nora and Jack agreed to the sale and admission of Jill into the partnership. The partnership agreement was changed to reflect Jill taking the place of Nick. All salary, interest and profit allocations previously provided to Nick now goes to 56 Jill. Jill is also allowed a monthly draw equal to Nick's prior draw. 58 Income for 2020 amounted to S 335,000 60 Required: 1. For each of the years 2018-2020, prepare a Statement of Partnership Capital Schedule of Income Allocation Sheet1 | Ready Type here to search AutoSave OB 2 8 ACCT 167 Partnership xlsx - Excel Search File Home Insert Draw Page Layout Formulas Data Review View Help EXPREP === Times New Roman 11 BIU AA A Wrap Text Merge & Center - Paste $ Clipboard 5 Alignment P13 A B C D E Statement of Partnership Capital Schedule of Income Allocation b. PART B (15 points) Ten years later, the partners Nora, Jack and Jill agree to liquidate the partnership. Their partnership capital and 68 profit loss percentages at that time are shown below: Nora 365.000 Jack 286.000 295.000 Jill Liquidation expenses are expected to be 28.000 75 Required: Prepare a Pro-Distribution Plan to be used during the liquidation process. Sheet1 Type here to search