Hi this problem is already done but I wanted to ask if you can show me or beak it down for me in notes on how all the problems on the attachment got their answers. For example, example 114 allowance for doubtful debts for Law is 1,000 but in his's journal entree it says 2,000.. I am clueless please help

./.Ex. 114 Ken Law and Jim Renn operate separate auto repair shops. On January 1, 2002, they decide to combine their separate businesses which were operated as proprietorships to form L & R Auto Repair, a partnership. Information from their separate balance sheets is presented below: Law Auto Repair Repair Cash Accounts receivable Allowance for doubtful accounts Accounts payable Notes payable Salaries payable Equipment Accumulated amortizationEquipment Renn Auto $ 8,000 9,000 1,000 5,000 1,000 12,000 2,000 $12,000 6,000 500 6,000 3,000 500 24,000 4,000 It is agreed that the expected realizable value of Law's accounts receivable is $7,000 and Renn's receivables is $5,000. The fair market value of Law's equipment is $15,000 and the value of Renn'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 Renn's balance sheet which he will pay himself. Instructions Prepare the journal entries necessary to record the formation of the partnership. Solution 114 (15 min.) Cash ....................................................................................................... Accounts Receivable .............................................................................. Equipment ............................................................................................... Allowance for Doubtful Accounts ................................................... Salaries Payable ............................................................................ Accounts Payable .......................................................................... K. Law, Capital ............................................................................... (To record K. Law's investment) Solution 114 (cont.) 8,000 9,000 15,000 Cash ....................................................................................................... Accounts Receivable .............................................................................. Equipment ............................................................................................... Allowance for Doubtful Accounts ................................................... Salaries Payable ............................................................................ Accounts Payable .......................................................................... J. Renn, Capital ............................................................................. 12,000 6,000 20,000 2,000 1,000 5,000 24,000 1,000 500 6,000 30,500 Ex. 115 Carr, Ellis, and Grand formed a partnership on January 1, 2002. Carr invested $30,000, Ellis $30,000 and Grand $70,000. Carr will manage the store and work 40 hours per week in the store. Ellis will work 20 hours per week in the store, and Grand will not work. Each partner withdrew 30 percent of his income distribution during 2002. If there was no income distribution to a partner, there were no withdrawals of cash. Instructions Compute the partners' capital balances at the end of 2002 under the following independent condition (Hint: use T accounts to determine each partner's capital balances.) (1) Net income is 33,000 and the income ratio is Carr 40%, Ellis 35%, and Grand 25%. Carr and Ellis receive salary allowances of $20,000 each, and each partner receives an interest allowance of 10% of their respective original investment. Solution 115 (25 min.) (1) Carr Interest 30000*10% 30000*10% 70000*10% Grand 20000 Salary Ellis 20000 0 Total 33000 40000 (7000) 3000 3000 7000 (8000) 15000 (7000) 16000 (5000) 2000 13000 (20000) 20000 33000 Ex. 119 The Grier and Otto Partnership has partner capital account balances as follows: Grier, Capital Otto, Capital $110,000 50,000 The partners share income and losses in the ratio of 60% to Grier and 40% to Otto. Instructions Prepare the journal entry on the books of the partnership to record the admission of Trent as a new partner under the following three independent circumstances. 1. Trent pays $70,000 to Grier and $30,000 to Otto for one-half of each of their ownership interest in a personal transaction. 2. Trent invests $170,000 in the partnership for a one-third interest in partnership capital. 3. Trent invests $35,000 in the partnership for a one-third interest in partnership capital. Solution 119 1. (20 min.) Grier, Capital .................................................................................. Otto, Capital ................................................................................... Trent, Capital ........................................................................ (To record admission of Trent by purchase) 55,000 25,000 80,000 Total net assets and total capital of the partnership do not change. 2. Cash ............................................................................................... Grier, Capital ......................................................................... Otto, Capital .......................................................................... Trent, Capital ........................................................................ 110,000 (To record admission of Trent and bonus to old partners) Solution 119 (cont.) 170,000 36,000 24,000 Total capital of existing partnership Investment by new partner, Trent Total capital of new partnership $160,000 170,000 $330,000 Trent's capital credit = $330,000 1/3 = $110,000 Trent's investment Trent's capital credit Bonus to old partners $170,000 110,000 $ 60,000 Allocation to old partners Grier (60% $60,000) Otto (40% $60,000) 3. Cash ........................................................................................... Grier, Capital .................................................................................. Otto, Capital ................................................................................... Trent, Capital ........................................................................ (To record Trent's admission and bonus) Total capital of existing partnership Investment by new partner, Trent Total capital of new partnership $36,000 24,000 $60,000 35,000 18,000 12,000 65,000 $160,000 35,000 $195,000 Trent's capital credit = $195,000 1/3 = $65,000 Bonus to Trent ($65,000 - $35,000) = $30,000 Reduction of old partners' capital Grier ($30,000 60%) Otto ($30,000 40%) $18,000 12,000 $30,000 Ex. 127 The ODS Partnership is to be liquidated when the ledger shows the following: Cash Noncash Assets Liabilities Owens, Capital Decker, Capital Short, Capital $20,000 80,000 20,000 30,000 40,000 10,000 Owens, Decker, and Short's income ratios are 6:3:1, respectively. Instructions Prepare separate entries to record the liquidation of the partnership assuming that the noncash assets are sold for $50,000 in cash. Solution 127 (15 min.) 1. Cash .................................................................................................. Loss on Realization .......................................................................... Noncash Assets ....................................................................... 50,000 30,000 2. Owens, Capital ($30,000 6/10) ...................................................... Decker, Capital ($30,000 3/10) ..................................................... Short, Capital ($30,000 1/10) ........................................................ Loss on Realization ................................................................. 18,000 9,000 3,000 3. Liabilities ........................................................................................... Cash ......................................................................................... 20,000 4. Owens, Capital ($30,000 - $18,000) ................................................ Decker, Capital ($40,000 - $9,000) ................................................. Short, Capital ($10,000 - $3,000) .................................................... Cash ($20,000 + $50,000 - $20,000) ..................................... 12,000 31,000 7,000 80,000 30,000 20,000 50,000 Ex. 118 Elston Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. During 2002, its first year of operation, the company has the following stock transactions. Jan. 1 Paid the state $2,000 for incorporation fees. Jan. 15 Issued 500,000 shares of stock at $6 per share. Jan. 30 Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $4,000. July 2 Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $7 per share. Sept. 5 Purchased 10,000 shares of common stock for the treasury at $10 per share. Dec. Sold 7,000 shares of the treasury stock at $12 per share. 6 Instructions Journalize the transactions for Elston Corporation. Solution 118 Jan. 1 Jan. 15 2,500,000 (12-14 min.) Organization Expense .......................................................... Cash ............................................................................. 2,000 Cash ...................................................................................... 3,000,000 Common Stock ............................................................ 2,000 Paid-In Capital in Excess of Par Value......................... 500,000 Jan. 30 July 2 Organization Expense .......................................................... Common Stock ............................................................ Paid-in Capital in Excess of Par Value ........................ 4,000 Land ...................................................................................... Common Stock ............................................................ 700,000 2,500 1,500 500,000 Paid-In Capital in Excess of Par Value ........................ 200,000 Sept. 5 Treasury Stock ...................................................................... Cash ............................................................................. 100,000 Cash ...................................................................................... Treasury Stock ............................................................. Paid-In Capital from Treasury Stock ........................... 84,000 100,000 Dec. 6 70,000 14,000