Partnerships - Assignment Question 1: Ren Li and Chen Guo decide to organize the ALL-Star partnership. Li invests HK$160,000 cash, and Guo contributes HK$110,000 cash and equipment having a book value of HK$32,000. Prepare the entry to record Guo's investment in the partnership, assuming the equipment has a fair value of HK$65,000. Question 2: Guang-Qing Ltd. reports net income of NT$200,000. The income ratios are Guang 65% and Qing 35%. Indicate the division of net income to each partner, and prepare the entry to distribute the net income. Question 3: Liu Jiqin has owned and operated a proprietorship for several years. On January 1", he decides to terminate this business and become a partner in the firm of Feng and Jiqin. Jiqin's investment in the partnership consists of HK$140,000 in cash, and the following assets of the proprietorship: accounts receivable HK$ 130,000 less allowance for doubtful accounts of HK$20,000, and equipment HK$200,000 less accumulated depreciation of HK$45,000. It is agreed that the allowance for doubtful accounts should be HK$28,000 for the partnership. The fair value of the equipment is HK$175,500. Instructions Journalize Jiqin's admission to the firm of Feng and Jiqin. Question4: In Royweb Co., beginning capital balances on January 1, 2017, are Ken Rory 20,000 and Diane Webb 18,000. During the year, drawings were Rory 7,000 and Webb 3,000. Net income was 29,000, and the partners share income equally. Instructions Prepare the partners' capital statement for the year to calculate the partners' capital balances as on Dec, 31 2017