The first problem is splitting profit and losses among partners. all questions are from partnership chapter.
Problem II. Prepare the necessary schedule to split the profit/loss to partners Adam, Ben & Thomas: (30 pts.) ABT partnership capital amounts are $600.000 / $150,000 / $250,000 respectively. ABT partnership agreement states that profits/losses are to be split based on the following: Interest on capital of 5%/3% / 4% respectively Partner Allowance/Salaries of $10,000 / $25,000 / $55,000 respectively Remainder to be split based on a ratio of their respective capital balances Assume a profit of $20,000. Prepare a schedule to split the partnership profit. Problem III. Prepare the necessary journal entries to admit the new partner: (20 points) WXYZ partnership capital balance amounts are: W=$60,000 / X=$45,000 / Y=$30,000/ Z= $15,000. New partner Jones has various methods to join this partnership (2 separate problems): 5629 Part a.) Jones agrees to give X his car worth $22,000 and cash in the amount of $29,000 to purchase 80% of X's capital. (10 pts.) Part b.) Jones contributes a $12,000 car, $6,000 equipment, $27,000 merchandise inventory, and cash of $5,000 for a 40% interest in the partnership. Split any bonus based on a ratio of the starting capital balances. (10 pts.) Problem IV. Prepare the Liquidation schedule in good form: (30 pts.) 46 Judy, Mary, & Sue are partners share profits/losses in a ratio of 4:1:3 Cash = $30,000 Non-Cash Assets $75,000 Liabilities $12,000 Capital - Judy $15,000 Capital -Mary $25,000 Capital -Sue $53,000 Pay off all liabilities at 75%, in other words pay off the Liabilities at $0.75 on each dollar owed. Sell off all non-cash assets for $10,000. Any partner deficits will be covered by the remaining partners. Pay off the partner. Problem II. Prepare the necessary schedule to split the profit/loss to partners Adam, Ben & Thomas: (30 pts.) ABT partnership capital amounts are $600.000 / $150,000 / $250,000 respectively. ABT partnership agreement states that profits/losses are to be split based on the following: Interest on capital of 5%/3% / 4% respectively Partner Allowance/Salaries of $10,000 / $25,000 / $55,000 respectively Remainder to be split based on a ratio of their respective capital balances Assume a profit of $20,000. Prepare a schedule to split the partnership profit. Problem III. Prepare the necessary journal entries to admit the new partner: (20 points) WXYZ partnership capital balance amounts are: W=$60,000 / X=$45,000 / Y=$30,000/ Z= $15,000. New partner Jones has various methods to join this partnership (2 separate problems): 5629 Part a.) Jones agrees to give X his car worth $22,000 and cash in the amount of $29,000 to purchase 80% of X's capital. (10 pts.) Part b.) Jones contributes a $12,000 car, $6,000 equipment, $27,000 merchandise inventory, and cash of $5,000 for a 40% interest in the partnership. Split any bonus based on a ratio of the starting capital balances. (10 pts.) Problem IV. Prepare the Liquidation schedule in good form: (30 pts.) 46 Judy, Mary, & Sue are partners share profits/losses in a ratio of 4:1:3 Cash = $30,000 Non-Cash Assets $75,000 Liabilities $12,000 Capital - Judy $15,000 Capital -Mary $25,000 Capital -Sue $53,000 Pay off all liabilities at 75%, in other words pay off the Liabilities at $0.75 on each dollar owed. Sell off all non-cash assets for $10,000. Any partner deficits will be covered by the remaining partners. Pay off the partner
