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Help me complete this please Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate
Help me complete this please
Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to combine their separate businesses which were operated as proprietorships to form M & B Auto Repair, a partnership. Information from their separate balance sheets is presented below: Marden Auto Repair $10,000 12,000 Baker Auto Repair $14,000 Cash Accounts receivable 10,000 Allowance for doubtful accounts 1,000 500 Accounts payable 5,000 6,000 Notes payable 3,000 1,000 1,500 Salaries and wages payable Equipment Accumulated depreciation-equipment 12,000 24,000 2,000 4,000 It is agreed that the expected realizable value of Marden's accounts receivable is $11,000 and Baker's receivables is $7,000. The fair value of Marden's equipment is $13,000 and the value of Baker's equipment is $20,000. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of the notes payable on Baker's balance sheet which he will pay himself. A partnership agreement is signed by both Marden and Barker to consummate this business venture. First year partnership financial operations are: Revenues were $15,000, expenses were $3,400, and Marden and Baker had drawings of $800 and $1,300, respectively. Answer the following questions using the information provided. ; allowance for doubtful accounts After the formation of M & B Auto Repair, January account balances are cash 10000 accounts receivable 12000 1000 equipment 13000 accumulated depreciation - equipment ; total assets 5000 salaries and wages payable 1000 notes payable ; total liabilities accounts payable ; Marden's capital ;Baker's capital and total equity of and Baker will receive Marden's ending capital will be After the first year of operations, Marden's share of net income is and Baker's ending capital is at the end of first year's operation. Assume on 1/1/2021 Bobby invests cash of $29,000 in M & B auto to become the third partner for a 20% interest stake, the capital balances are - Marden is Baker is and Bobby isStep by Step Solution
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