There are about twenty questions.i need half only solved Most of them short answer questions.

14. If instead the partnership uses the bonus method, what is the balance of Manning's capital account after Clark withdraws? LO 1410 a. $100,000. b. $126,250. c. $130,000. d. $133,750. Problems 15 and 16 are independent problems based on the following capital account balances: 15. Darrow invests $270,000 in cash for a 30 percent ownership interest. The money goes to the original partners. Goodwill is to be recorded. How much goodwill should be recognized, and what is Darrow's beginning capital balance? LO 148 a. $410,000 and $270,000. b. $140,000 and $270,000. c. $140,000 and $189,000. d. $410,000 and $189,000. 16. Darrow invests $250,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jennings's capital balance? LO 149 a. $160,000. b. $168,000. c. $170,200. d. $171,200. 17. Lear is to become a partner in the WS partnership by paying $80,000 in cash to the business. At present, the capital balance for Hamlet is $70,000 and for MacBeth is $40,000. Hamlet and MacBeth share profits on a 7:3 basis. Lear is acquiring 40 percent of the new partnership. LO 149 a. If the goodwill method is applied, what will the three capital balances be following the payment by Lear? b. If the bonus method is applied, what will the three capital balances be following the payment by Lear? 18. The Distance Plus partnership has the following capital balances at the beginning of the current year: LO 149 Each of the following questions should be viewed independently. a. If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio invests $72,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used. 19. A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabilities $240,000; Nixon, Capital (50 percent of profits and losses) $200,000; Hoover, Capital (20 percent) $120,000; and Polk, Capital (30 percent) $90,000. Each of the following questions should be viewed as an independent situation: LO 149 a. Grant invests $80,000 in the partnership for an 18 percent capital interest. Goodwill is to be recognized. What are the capital accounts thereafter? b. Grant invests $100,000 in the partnership to get a 20 percent capital balance. Goodwill is not to be recorded. What are the capital accounts thereafter? 20. The PrinceRobbins partnership has the following capital account balances on January 1, 2015: LO 149 Prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to Robbins after interest of 10 percent is given to each partner based on beginning capital balances. On January 2, 2015, Jeffrey invests $37,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 10 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2015, the partnership reports a net income of $15,000. a. Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2015. b. Determine the allocation of income at the end of 2015. 21. The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: LO 146 Jones, the managing partner, receives a bonus equal to 20 percent of the business's profit. Each partner receives 15 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2015 were as follows: How much of the $90,000 partnership profit for 2015 should be assigned to each partner? 22. Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2015, capital balances were as follows: LO 144, 145, 146 Due to a cash shortage, Purkerson invests an additional $8,000 in the business on April 1, 2015. Each partner is allowed to withdraw $1,000 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: Each partner is given the following compensation allowance for work done in the business: Purkerson, $18,000; Smith, $25,000; and Traynor, $8,000. Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings. Any remaining profit or loss is allocated 4:2:4 to Purkerson, Smith, and Traynor, respectively. The net income for 2015 is $23,600. Each partner withdraws the allotted amount each month. What are the ending capital balances for 2015? 23. On January 1, 2014, the dental partnership of Left, Center, and Right was formed when the partners contributed $20,000, $60,000, and $50,000, respectively. Over the next three years, the business reported net income and (loss) as follows: LO 144, 145, 146 During this period, each partner withdrew cash of $10,000 per year. Right invested an additional $12,000 in cash on February 9, 2015. At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows: Each partner is entitled to interest computed at the rate of 12 percent per year based on the individual capital balances at the beginning of that year. Because of prior work experience, Left is entitled to an annual salary allowance of $12,000, and Center is credited with $8,000 per year. Any remaining profit will be split as follows: Left, 20 percent; Center, 40 percent; and Right, 40 percent. If a loss remains, the balance will be allocated: Left, 30 percent; Center, 50 percent; and Right, 20 percent. Determine the ending capital balance for each partner as of the end of each of these three years. 24. The E.N.D. partnership has the following capital balances as of the end of the current year: LO 1410 Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $190,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $280,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? 25. The partnership of Matteson, Richton, and O'Toole has existed for a number of years. At the present time the partners have the following capital balances and profit and loss sharing percentages: LO 1410 O'Toole elects to withdraw from the partnership, leaving Matteson and Richton to operate the business. Following the original partnership agreement, when a partner withdraws, the partnership and all of its individual assets are to be reassessed to current fair values by an independent appraiser. The withdrawing partner will receive cash or other assets equal to that partner's current capital balance after including an appropriate share of any adjustment indicated by the appraisal. Gains and losses indicated by the appraisal are allocated using the regular profit and loss percentages. An independent appraiser is hired and estimates that the partnership as a whole is worth $600,000. Regarding the individual assets, the appraiser finds that a building with a book value of $180,000 has a fair value of $220,000. The book values for all other identifiable assets and liabilities are the same as their appraised fair values. Accordingly, the partnership agrees to pay O'Toole $120,000 upon withdrawal. Matteson and Richton, however, do not wish to record any goodwill in connection with the change in ownership. Prepare the journal entry to record O'Toole's withdrawal from the partnership. 26. In the early part of 2015, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in 2014 but had never used an accountant's services. LO 142, 144, 146, 149 Hugh and Jacobs began the partnership by contributing $150,000 and $100,000 in cash, respectively. Hugh was to work occasionally at the business, and Jacobs was to be employed full time. They decided that yearend profits and losses should be assigned as follows: Each partner was to be allocated 10 percent interest computed on the beginning capital balances for the period. A compensation allowance of $5,000 was to go to Hugh with a $25,000 amount assigned to Jacobs. Any remaining income would be split on a 4:6 basis to Hugh and Jacobs, respectively. In 2014, revenues totaled $175,000, and expenses were $146,000 (not including the partners' compensation allowance). Hugh withdrew cash of $9,000 during the year, and Jacobs took out $14,000. In addition, the business paid $7,500 for repairs made to Hugh's home and charged it to repair expense. On January 1, 2015, the partnership sold a 15 percent interest to Thomas for $64,000 cash. This money was contributed to the business with the bonus method used for accounting purposes. Answer the following questions: a. Why was the original profit and loss allocation, as just outlined, designed by the partners? b. Why did the drawings for 2014 not agree with the compensation allowances provided for in the partnership agreement? c. What journal entries should the partnership have recorded on December 31, 2014? d. What journal entry should the partnership have recorded on January 1, 2015? 27. Following is the current balance sheet for a local partnership of doctors: LO 143, 149, 1410 The following questions represent independent situations: a. E is going to invest enough money in this partnership to receive a 25 percent interest. No goodwill or bonus is to be recorded. How much should E invest? b. E contributes $36,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances? c. E contributes $42,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances? d. E contributes $55,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A, 10 percent; B, 30 percent; C, 20 percent; and D, 40 percent. After E makes this investment, what are the individual capital balances? e. C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 125 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses equally. After the withdrawal, what are the individual capital balances of the remaining partners? LO 154 15. A partnership currently holds three assets: cash, $10,000; land, $35,000; and a building, $50,000. The partnership has no liabilities. The partners anticipate that expenses required to liquidate their partnership will amount to $5,000. Capital balances are as follows: The partners share profits and losses as follows: Ace (30 percent), Ball (30 percent), Eaton (20 percent), and Lake (20 percent). If a preliminary distribution of cash is to be made, what is the amount of safe payment that can be made to each partner? LO 154 16. The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $200,000. Prepare a proposed schedule of liquidation at this point in time. LO 155 17. The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? LO 154 18. A partnership's balance sheet is as follows: Babb, Whitaker, and Edwards share profits and losses in the ratio of 4:2:4, respectively. This business is to be terminated, and the partners estimate that $8,000 in liquidation expenses will be incurred. How should the $2,000 in safe cash that is presently held be disbursed? LO 153 19. A partnership has liquidated all assets but still reports the following account balances: The partners split profits and losses as follows: Black, 30 percent; White, 30 percent; Green, 10 percent; Brown, 20 percent; and Blue, 10 percent. Assuming that all partners are personally insolvent except for Green and Brown, how much cash must Green now contribute to this partnership? LO 154, 155 20. The following balance sheet is for a local partnership in which the partners have become very unhappy with each other. To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership's liquidation. a. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided? b. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided? c. The building is immediately sold for $70,000 to give total cash of $110,000. The liabilities are then paid, leaving a cash balance of $80,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? d. Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? LO 152, 154 21. Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. At the date the partnership ceases operations, the balance sheet is as follows: Part A Prepare journal entries for the following transactions: a. Distributed safe cash payments to the partners. b. Paid $40,000 of the partnership's liabilities. c. Sold noncash assets for $220,000. d. Distributed safe cash payments to the partners. e. Paid all remaining partnership liabilities of $40,000. f. Paid $8,000 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B Prepare a final statement of partnership liquidation. LO 155 22. The partnership of Larson, Norris, Spencer, and Harrison has decided to terminate operations and liquidate all business property. During this process, the partners expect to incur $8,000 in liquidation expenses. All partners are currently solvent. The balance sheet reported by this partnership at the time that the liquidation commenced follows. The percentages indicate the allocation of profits and losses to each of the four partners. Based on the information provided, prepare a predistribution plan for liquidating this partnership. LO 155 23. The following partnership is being liquidated: a. Liquidation expenses are estimated to be $12,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $28,000 are sold for $40,000. How is the available cash to be divided? LO 155 24. A local partnership is to be liquidated. Commissions and other liquidation expenses are expected to total $19,000. The business's balance sheet prior to the commencement of liquidation is as follows: Prepare a predistribution plan for this partnership. LO 153 25. The following information concerns two different partnerships. These problems should be viewed as independent situations. Part A The partnership of Ross, Milburn, and Thomas has the following account balances: This partnership is being liquidated. Ross and Milburn are each entitled to 40 percent of all profits and losses with the remaining 20 percent to Thomas. a. What is the maximum amount that Milburn might have to contribute to this partnership because of the deficit capital balance? b. How should the $19,000 cash that is presently available in excess of liabilities be distributed? c. If the noncash assets are sold for a total of $41,000, what is the minimum amount of cash that Thomas could receive? Part B The partnership of Sampson, Klingon, Carton, and Romulan is being liquidated. It currently holds cash of $9,000 but no other assets. Liabilities amount to $24,000. The capital balances are as follows: Profits and losses are allocated on the following basis: Sampson, 40 percent, Klingon, 20 percent, Carton, 30 percent, and Romulan, 10 percent. a. If both Klingon and Romulan are personally insolvent, how much money must Carton contribute to this partnership? b. If only Romulan is personally insolvent, how much money must Klingon contribute? How will these funds be disbursed? c. If only Klingon is personally insolvent, how much money should Sampson receive from the liquidation