WHAT IS A PARTNERSHIP Exhin in your own words me Distribution During year 2, 2017 the following T accounts show the activity in the partners' Capital and Withdrawal accounts: On May 1, 2017 He withdrew $45,000 and JR withdrew $25,000 HH Capital JR Capital 1/1/2017 216540 1270 HH Drawings 45,000 JR Drawings 25,000 1 may Hi's additional capital contributions during the year is as follows Date Contribution 3/31/2017 $16.000 7/1/2017 $12.000 11/30/2017 $24,000 JR's Miditional capital contributions during the year is as follows: Date Contribution 4/1/2017 $12.000 9/1/2017 $12.000 11/30/2017 $24,000 Assume the partnership agreement states that profits and losses will be distributed as follows 1. JR will receive an annual salary of $30,000 2. Each partner receives a 20% interest on the weighted average captal balances 3. JR gets a bonus of 15 on net income over $50,000 4. HH and JR share remaining profits and losses equally (5050) 1. Calculate the weighted average capital balance for each partner intuse same method used for calculation of weghe average of outstanding stocks) 2. Calculate the distribution of the income or loss generated under the folowing assumptions a) The partnership had a net income of $150,000 at the end of 2017, how much is distributed to JR b) The partnership had a net income of $75,000 at the end of 2017, how much is distruted to c) The partnership had a net loss of $20,000 at the end of 2017, what is each partner's capital balance after distribution of the loss d) Prepare the closing entries for both capital and withdrawal accounts as of Dec 31, 2017 under each independent scenario Hand JR are fashion designers who agreed to form a partnership to open a dothing store An attomey prepares the partnership agreement, which ndicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value The assets contributed by each partner and the linbilities assumed by the partnership follow Assets B0000 Accounts receivable 104000 Alowance for uncollectible accounts-Book value Allowance for uncollectible accounts - Fair Value 6000 Supplies 2000 Euipment Book Value 60,000 - Far Value 40,000 Accumulated depreciation equipment (3.000 biries Accounts payable 64.000 Prepare the joumal entry to record the investment of each partner separately JR 60.000 40.000 2,500 4,000 1002 35.000 20.000 (10 000) 18000 The partners of the Hand JR partnership agree to admit a new partner into the partnership Below is the Information about the partnership at the time of LVs admission Capital balance Profit/loss sharing ratio (3:2) HH 200540 60% JR 145.450 40% Wagrees to pay $50poo for a 10% interest in the partnership Make the journal entry to admit LV assuming that a) LV purchases 10% of the business interest (assignment of interest) for $50,000 directly from it and JR and the bonus method is used Prepare the journal entry to record the sale LV purchases 10% of the business interest (assignment of interest) for $50,000 directly from the partnership under the bonus method The Partnership is giving a bonus to the new partner so LV gets 15% of the partnership for $50.000 Assume I decides to sell all of his Partnership interest directly to LV for $350000 Prepare the journal entry to record this sale Partners Ruby, Stanley and Thomas have folowing capital balances and income distribution ratios Ruby Stanley Thomas $50,000 $30,000 $20.000 3 2 1 Prepare the pure entry to record the withdrawal under the three assumptions below (1) Thomas retires and receives $9,000 from each of the remaining partners. Each remaining partner assume one half of Thomas interest (2) Thomas retires and receives $16000 from the partnership ) Thomas retires and receives $25.000 from the partnership Tom Sawyer retired from Tom Jerry and Mckay Partnership with the below capital and income sharing at Tom was paid $100.000 inful settlement of his interest in the partnership. What is the total agreed upon goodwill of the firm 100 10 107 103 Tom Sawyer Jerry Steward Mickey Stevens Beg Bal $60,000 $40.000 550.000 PyLato 25 35 40 100 108 FEE