Answered step by step
Verified Expert Solution
Question
1 Approved Answer
complete all please PART A-Starting partnerships and dividing Income On January 1, 2022, Steve Pippy and Mark Furlong agreed to pool their assets and form
complete all please
PART A-Starting partnerships and dividing Income On January 1, 2022, Steve Pippy and Mark Furlong agreed to pool their assets and form a partnership called F&P Consulting. They agree to share all profits in a 3:2 ratio and make the following initial investments. Pippy Furlong Cash $ 58,000 $33,000 Accounts receivable 2,000 8,000 Equipment 13,000 8,800 Software & Computers 7,500 3,200 On December 31, 2022, the partnership reported a net income for the year of $63,000. Instructions Journalize the following transactions: (1) the initial contributions to the partnership by Furlong and Pippy on Jan 1, 2022. (2) the division of the net income to the partners at the end of December 2022. (3) Based on starting Capital, what is a more appropriate income ratio? (no journal entry needed, just explain your answer) !!! Focus Pane - PART B - Statement of Partnership Equity Grow Rite is a partnership owned by T. Tree and B. Branch. At January 1, 2022 the partner's capital accounts were: T. Tree, $26,500 and B. Branch $19,300. During 2022, Tree contributed $5,500 in cash to the business and Branch contributed $7000. Each partner withdrew $2,000 during the year and the net income was $60,000. The partners share net income based on the following income ratio: $8000 each (Salary) 2:1 ratio (Tree:Branch) for the remainder. Instructions Prepare the Statement of Partners' Equity for the year ended December 31, 2022. Focus (Canada) - PART C -Admitting Partners Gus Winstaff and Kiana Chabot are partners who share income on a 2:1 basis, and on July 1, their capital account balances are $60,000 and $50,000 respectively. On July 1, Ella Ng is admitted to the partnership. Instructions Prepare the entry to record Ingram's admission to the partnership under the following independent situations: (a) Ng purchases 50% of Winstaffs partnership interest from him for $40,000. Winstaff keeps this money personally. (b) Ng contributing cash of $40,000 to the partnership. Partners PART D-Withdrawal of Partners Baker, Gregg, and Stine share income and losses in a ratio of 2:1:3, respectively. The capital account balances of the partners are as follows: Baker, Capital $150,000 Gregg, Capital 90,000 Stine, Capital 60,000 Instructions Prepare the journal entries to record the withdrawal of Stine under the following Independent circumstances:(a) The partners agree that Stine should be pald $60,000 by the partnership for his equity. (b) Baker and Gregg each agree to pay Stine $25,000 for one-half of his capital in a personal transaction among the partners. 23 PART E-Liquidation Marchand, Bergeron and Pastmak are partners with capital balances of $200 000, $230 000 and $150 000 respectively. They share profits and losses in a 2:1:1 ratio. The business has a Bank Loan of $25000 and some Accounts Payable that total $8000. On October 31, the partners have decided to close down the business. They manage to liquidate all of the assets at a gain of $10 000. At close, there is a cash balance of $700,000 after the disposal of the assets (step 1). a) Show the journal entry to allocate the gain to the partners b) Show the journal entry to pay off creditors. c) Show the entry to dissolve the business Foc Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started