1. Max, Jones, and waters shared profits and losses 20%, 40%, and 40% respectively and their partnership capital balance is 10,000, 30,000, and 50,000 respectively. Max had decided to withdraw from the partnership. An appraisal of the business and its property estimates the fair value to be 200,000. Land with book value of 30,000 has a fair value of 45,000. Max has agreed to receive 20,000 in exchange for her partnership interest. What amount should land be recorded on the partnership books?

. Max , Jones , and waters shared profits and losses 20% , 40% , and 40% respectively andtheir partnership capital balance is 10 , 000 , 30 , 000 , and 50, 000 respectively . Max hasdecided to withdraw from the partnership . An appraisal of the business and its propertyestimates the fair value to be 200, 000 . Land with book value of 30, 000 has a fair value of45, 000 . Max has agreed to receive 20, 000 in exchange for her partnership interest . Whatamount should land be recorded on the partnership books ?2 .On July 1 , ML and PP formed a partnership , agreeing to share profits and losses in theratio of 4:6 respectively . ML contributed a parcel of land that cost her 25 , 000 . PPcontributed 50 , 000 cash . The land was sold for 50, 000 0 July 1 four hours after formationof the partnership . How much should be recorded in ML's capital account on thepartnership formation .3 .Paul , Jeremy , and Juan are forming a partnership . Juan contributes a building having ahistorical cost , accumulated depreciation , and market value of 290 , 000 , 100 , 000 , and400, 000 respectively . The building is initially recorded on the partnership books at Juan'sbook value ( 190 , 000 ) Two years later the building is sold for a 270, 000 gain . What portionof the profit or loss should be allocated to Juan ?"4 .Albert , Claude , and Jamie form a partnership by contributing 25 , 000 , 70 , 000 , and 80 , 000respectively . In addition , the partners agree that albert should receive 20 , 000 of goodwillbecause of his special skills relevant to this business . What amount of capital will exist forClaude when the partnership is formed ?"5 .Max , Ike , and Tony are forming a partnership . The appraised value of assets contributedis 60 , 000 , 80 , 000 , and 100 , 000 respectively . In addition , Max and Tony agree that Ike'sexperience is worth 30, 000 . The partners desire to apply the bonus method whereapplicable . What is the total capital recorded at the date the partnership is formed ?.Richardson , Peterson , and Wilkerson are forming a partnership . The partners contributecash and non cash assets valued at 30, 000 , 50, 000, and 25, 000 respectively . The partnerschoose to apply the bonus method where applicable . If the partners agree to establishequal capital account balances when the partnership is formed , how much of a bonus isreceived by Richardson ?Bill and Ken enter into a partnership agreement in which Bill is to have a 60% interest incapital an profits and Ken is to have a 40% interest in capital and profits . Bill contributesthe following :"CostFair ValueLand10 , 000Building20 , 00060 , 000Equipment100 , 00020, 00015, 000There is a 30, 000 mortgage on the building that the partnership agrees to assume . Ken8 . WWW and MM drafted a partnership agreement that list the following assets contributedof the partnership's formation :"contributes 50, 000 cash to the partnership . Bill and Ken agree that Ken's capital accountGoodwill should be recorded in the amount of ?should equal Ken's 50, 000 cash contribution and that goodwill should be recorded . Accounts PayableCC, Capital\8, 000\33 , 000be made :It is agreed that for purposes of establishing CC's interest the following adjustments shall_An allowance for doubtful accounts of 3%% of accounts receivable is to beestablished .The merchandise inventory is to be valued at 23 , 000Prepaid salary expenses of 600 and accrued rent expense of 800 are to berecognized .Question No . 1 DD is to invest sufficient cash to obtain a 1/3 interest in thepartnership . CC's Adjusted capital before the admission of CC ?"Question No . 2 The amount of Cash invested by DD ?12 . On March 1 , 2014 CC and FF formed a partnership with each contributing the followingassets :`CCFFCash30, 000 |70 , 000Machinery75 , 000Buildings225, 000Furniture and Fixture1 10 , 000The building is subject to a mortgage loan of 90, 000, which is to be assumed by thepartnership agreement provides that CC and FF share profits and losses 30 percent and70 percent respectively\Question No . 1 On March 1 , 2014 , the capital account of FF would show a balanceof ?Question No. 2 Assuming that the partners agreed to bring their respective capitalin proportion to their respective profit and loss ratio , and using FF's capital as thebase , how much cash is to be invested by CC ?`13 . John , Jeff and Jane decided to engage in a real estate venture as a partnership . Johninvested 100 , 000 cash and Jeff provided office equipment that is carried on his books at82, 000 . The partners agree that the equipment has a fair value of 1 10 , 000 . There is a30,000 note payable remaining on the equipment to be assumed by the partnership .Although Jane has no physical assets to invest in the partnership , both John and Jeffbelieve that her experience as a real estate appraiser is a valuable skill needed by thepartnership and is a basis for granting her a capital interest in the partnership . Assumingthat each partner is to receive an equal capital interest in the partnership .Question No . 1 Under the bonus method what amount should be recorded asthis date :"capital for John , Jeff , and Jane at the formation of the partnership ?\Merchandise InventoryAccounts Receivable54, 000\Question No . 2 Under the goodwill method , what amount should be recorded asCash1 , 500FFcapital for John , Jeff , and Jane at the formation of the partnership ?3 , 75022 , 500GG14 . AS of July 1 , 2014 , FF and GG decided to form a partnership . Their balances sheets on20 , 250 Machinery and Equipment15,00027,00070,500 73,500Accounts payableFF, Capital13,50024,000GG, Capital57,00049,50070,500 73,500The partners agreed that the machinery and equipment of FF is under depreciated by1,500 and that of GG by 4,500. Allowance for doubtful accounts is to be set up amountingto 12,000 for FF and 4500 for GGQuestion No. 1 If the capital contribution of each partner is the net amount of hisassets and liabilities taken over by the partnership, the capital accounts of FF and GGwould be?Question No. 2 Assume that the partnership agreement provides for profit and losssharing of 60% to FF and 40% to GG, and that the new capital of the partnership is to bebased on the adjusted capital of GG. How much additional cash must be invested by FFin order to bring the partner's capital balances proportionate to the profit and loss ratio?15. 00 and PP are partners sharing profits in this proportion 60:40. A balance sheet preparedfor the partners on April 1, 2014 shows the following:Cash48,000 |Accounts Payable89,000Accounts Receivable92,000 OO, Capital133,000Inventories165,000 PP, Capital108,000Equipment70,000Accumulated Depreciation(45,000)Total Assets330,000 Total Liabilities and Capital330,000On this date, the partners agree to admit RR as a partner, the Terms of the agreementare summarized below:Assets and Liabilities are to be restated as follows:An allowance for possible uncollectible of 4,500 is to be established.Inventories are to be restated as their present replacement value of 170,000Accrued expenses of 4,000 are to be recognized.00 and PP and RR will divide profits in the ratio of 5:3;2. Capital balances of the partnersafter the formation of the new partnership are to be in the aforementioned ratio with OOQuestion No. 1 The cash to be invested by RR is?Question No. 3 Cash settlement between OO and PP is?Question No. 2 The total capital of the partnership after the admission of RR is?capitals and RR investing cash in the partnership for his interest.and PP making cash settlement between them outside of the partnership to adjust their WWMMCash20,00030,000Inventory15,000Building40,000Furniture and Equipment15,000The building is subject to a 10,000 mortgage, which the partnership has assumed. Thepartnership agreement also specifies that profits and losses are to be distributed evenly.What amounts should be recorded as capital for WW and MM at the formation of thepartnership.9. On March 1, 2014, Evan and Helen decide to combine their business and form apartnership. The balance sheets of Evan and Helen on March 1, 2014 before adjustments:EvanHelenCash9,0003,750Accounts Receivable18,50013,500Inventories30,00019,500Furniture and Fixtures (net)30,0009,000Office Equipment (net)11,5002,750Prepaid Expenses6,3753,000The105,375 51,500theAccounts payable45,750 18,000Evan, Capital59,625andHelen, Capital33,500105,375 51,500They agreed to provide 3% for doubtful accounts of their accounts receivables and foundHelen's furniture and fixtures to be under-depreciated by 900. If each partners share inequity is to be equal to the net assets invested, the capital accounts of Evan and Helenwould be?10. Jones and Smith formed a partnership with each partner contributing the following items:JonesSmithCash80,00040,000Building Cost to Jones300,000Fair Value400,000Inventory Cost to Smith200,000Fair Value280,000Mortgage Payable120,000Accounts Payable60,000Assume that for tax purposes Jones and Smith agree to share equally in the liabilitiesassumed by the Jones and Smith Partnership. What is the balance in each partner's capital11. CC Admits DD as a partner in business. Accounts in the ledger for CC on November 30,account for financial accounting purposes?2016, just before the admission of DD, show the following balances;14,200Merchandise Inventory 20,000Accounts receivablesCash6,800