The post-closing trial balances of two proprietorships

Assignment Help Accounting Basics
Reference no: EM131131922

The post-closing trial balances of two proprietorships on January 1, 2010, are presented below.

Patrick and Samuelson decide to form a partnership, Pasa Company, with the following agreed upon valuations for noncash assets.

 

All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Further, it is agreed that Patrick will invest an additional $5,000 in cash, and Samuelson will invest an additional $19,000 in cash.

Instructions

(a) Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.

(b) Journalize the additional cash investment by each partner.

(c) Prepare a classified balance sheet for the partnership on January 1,2010.  

Reference no: EM131131922

Questions Cloud

What are some factors to consider when prioritizing : What are some factors to consider when prioritizing and budgeting environmental compliance initiatives? It doesn’t matter whether you manufacture specialty chemicals or household cleansers, operate a paint shop, sell turf products, or dispose of comp..
Assume that snider is unable to pay the capital deficiency : The partners share income and loss 5 : 3 : 2. During the process of liquidation, the following transactions were completed in the following sequence.
Assuming that the two plans have the same risk as the firm : Assuming that the two plans have the same risk as the firm, use the following capital budgeting techniques and the firm's cost of capital to evaluate their acceptability and relative ranking. (1) Net present value (NPV).
The capital balance represents each partner : Net income is $19,000. Each partner is allowed interest of 10% on beginning capital balances. Caplin is given a $12,000 salary allowance. The remainder is shared equally.
The post-closing trial balances of two proprietorships : Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.
What is its goal in selecting projects : Once the firm has determined its projects’ relevant cash flows, what must it do next? What is its goal in selecting projects?
What is the highest cost of capital that the firm could have : Develop the relevant cash flows needed to analyze the proposed replacement. Determine the net present value (N.PV) of the proposal. Determine the internal rate of return (ERR) of the proposal. Make a recommendation to accept or reject the replacement..
Assume instead that carson leaves the partnership : Assume instead that Carson leaves the partnership. Carson is paid $120,000 with a bonus to the retiring partner. Prepare the journal entry to record Carson's withdrawal.
Journalize the withdrawal of fisk under each : H. Barrajas, T. Dingler, and R. Fisk have capital balances of $95,000, $75,000, and $60,000, respectively. They share income or loss on a 5 : 3 : 2 basis. Fisk withdraws from the partnership under each of the following conditions.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Compute return on total assets for polaris and arctic

Key figures for Polaris and Arctic Cat follow.

  Income statement for the year ended march

This material also is included in AF's Registration Document 2010-11,dated June 15, 2011 and is available at www.airfranceklm.com.

  Dry pavement stopping distance

Find a 95% confidence interval for the mean dry pavement stopping distance. Be sure to check the appropriate assumptions and conditions, and explain what your interval means.

  The interest is computed based on the beginning balance of

kasik co. budgeted the following cash receipts and cash disbursements for the first three months of next year.cash

  Current assets totaled 100000 and the current ratio was 15

current assets totaled 100000 and the current ratio was 1.5. assume that the following transactions were completed1.

  Merchandise available for sale

Based on the following data, estimate the cost of ending merchandise inventory:

  During 2009 gator leasing generated cash from leasing its

during 2009 gator leasing generated cash from leasing its major business activity and sold an office building. what

  Determine the tax treatment of the proposed premium

Determine the tax treatment of the proposed premium payments and write a memorandum to Horace summarizing your results.

  Dataspan inc automated its plant at the start of the

dataspan inc. automated its plant at the start of the current year and installed a flexible manufacturing system. the

  Saturn issues 65 five-year bonds dated january 1 2011 with

saturn issues 6.5 five-year bonds dated january 1 2011 with a 500000 par value. the bonds pay interest on june 30 and

  The following transactions adjusting entries

The following transactions, adjusting entries, and closing entries were completed by King Furniture Co. during a three-year period.

  Distributions firsttier or secondtier distributions

a. How much of the $150,000 distributed to Renee is included in her gross income? b. How much of the $30,000 distributed to Clare is included in her gross income? c. Are these distributions firsttier or secondtier distributions?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd