Instructions Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $150,600 and 560,730, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. Required: Assume the sale occurs on December 31. What entry is required by the partnership if the sales price is (a) $50,2007 (6) $71,200? Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Journal Assume the sale occurs on December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Scroll down to access parts (a) and (b) of the exercise (a) What entry is required by the partnership if the sales price is $50,200? PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 (b) What entry is required by the partnership if the sales price is $71,200? PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 Instructions The capital accounts of Trent Henry and Tim Chou have balances of $146,000 and 593,800, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for S29,100 and one-fourth of Chou's interest for $21,300. Clarke contributes 569,400 cash to the partnership, for which she is to receive an ownership equity of $69,400. Required: a. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for joumal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partners? Journal a. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 5 Final Question b. What are the capital balances of each partner after the admission of the new partners? Partner Capital Balance $ $ Trent Henry, Capital Tim Chou. Capital LeAnne Gilbert, Capital Becky Clarke, Capital $ $ Partner bonuses, statement of partnership equity The partnership of Angel Investor Associates began operations on January 1, 2045, with contributions from two partners as follows: Dennis Overton $105,840 Ben Testerman 31,360 The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $58,800 cash for a 30% interest. 2. Net income of $250,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $60,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell. 3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income. Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank. Angel Investor Associates Statement of Partnership Equity For the Year Ended December 31, 2045 Dennis Overton, Capital Ben Testerman, Capital Randy Campbell, Capital Total Partnership Capital Balances, January 1, 2045 Admission of Randy Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 2015 si Dividing Partnership Income Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $168,000 and that Shannon is to invest $56,000. Black is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 5% on original investments and the remainder equally. e. Interest of 5% on original investments, salary allowances of $60,000 to Black and $75,000 to Shannon, and the remainder equally. f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $136,000 and (2) net income of $225,000. Round answers to the nearest whole dollar. (2) (1) $ 136,000 $225,000 Plan Black Shannon Black Shannon a. s b. $ $ S $ s d. $ e. $ $ S f. $ $ Instructions Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $150,600 and 560,730, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. Required: Assume the sale occurs on December 31. What entry is required by the partnership if the sales price is (a) $50,2007 (6) $71,200? Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Journal Assume the sale occurs on December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Scroll down to access parts (a) and (b) of the exercise (a) What entry is required by the partnership if the sales price is $50,200? PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 (b) What entry is required by the partnership if the sales price is $71,200? PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 Instructions The capital accounts of Trent Henry and Tim Chou have balances of $146,000 and 593,800, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for S29,100 and one-fourth of Chou's interest for $21,300. Clarke contributes 569,400 cash to the partnership, for which she is to receive an ownership equity of $69,400. Required: a. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for joumal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partners? Journal a. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 5 Final Question b. What are the capital balances of each partner after the admission of the new partners? Partner Capital Balance $ $ Trent Henry, Capital Tim Chou. Capital LeAnne Gilbert, Capital Becky Clarke, Capital $ $ Partner bonuses, statement of partnership equity The partnership of Angel Investor Associates began operations on January 1, 2045, with contributions from two partners as follows: Dennis Overton $105,840 Ben Testerman 31,360 The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $58,800 cash for a 30% interest. 2. Net income of $250,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $60,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell. 3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income. Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank. Angel Investor Associates Statement of Partnership Equity For the Year Ended December 31, 2045 Dennis Overton, Capital Ben Testerman, Capital Randy Campbell, Capital Total Partnership Capital Balances, January 1, 2045 Admission of Randy Campbell Salary allowance Remaining income Partner withdrawals Balances, December 31, 2015 si Dividing Partnership Income Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $168,000 and that Shannon is to invest $56,000. Black is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 5% on original investments and the remainder equally. e. Interest of 5% on original investments, salary allowances of $60,000 to Black and $75,000 to Shannon, and the remainder equally. f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $136,000 and (2) net income of $225,000. Round answers to the nearest whole dollar. (2) (1) $ 136,000 $225,000 Plan Black Shannon Black Shannon a. s b. $ $ S $ s d. $ e. $ $ S f. $ $