Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Lion and Tiger had operated as a partnership for a number of years. At June 30, 20XX their balance sheet appeared as below:
LION & TIGER
Balance Sheet, June 30, 20XX
Assets:
Cash
$5,000
Receivables
$30,000
Inventories
$60,000
Equipment (net)
$80,000
Building (net)
$90,000
$265,000
Liabilities:
Accounts Payable
$34,000
Accrued Liabilities
$6,000
Mortgage Payable
Lion, Capital
$75,000
Tiger, Capital
$70,000
Peters is interested in becoming a partner on equal terms with Lion and Tiger. The partners do not wish to have any goodwill exist on their books, and they have carefully studied their various asset values to determine the basis for Peters' investment. It is agreed that prior to admission of Peters, the receivables $66,000. Peters agrees to invest $75,000 for a one-third interest in the partnership. The partners agree that all capital accounts shall be equal after this investment. Assume an expansion.
Required:
1. Prepare Journal entries necessary to reflect the above. How much cash should Tiger pay Lion on a personal basis?
2. Assume the partners DO wish to record goodwill and no adjustments are necessary to the asset values other than goodwill. Prepare journal entries to record transactions. (Do not assume capital accounts are to be equal after entry.)
The difference between the selling price and the variable cost per unit.
Spencer Duck (SSN 277-31-7264) is single and his eight-year-old son, Mitch, lives with him nine months of the year in a rented condominium at 321 Hickory Drive in Ames, Iowa. Mitch lives with his mother, Spencer's ex-wife, during the summer mo..
on july 1 2014 bamazon corporation issued 1000000 of 6 debentures to yield 7. the entire bond issue was purchased by
Is it true that the "flatter" or more nearly horizontal, the demand curve for a particular firm's stock, and the less important investors regard the signaling effect of the offering, the more important the role of investment bankers when the compa..
Does the budget suggest that additional workers are needed? Suppose the wage rate is $20 per hour. How many additional labor hours are needed in May?
on april 1 2014 cruz corp. purchased 50 of chapman inc.s 8 1000 bonds that mature in 15 years at a price that yielded a
job order cost accounting battle manufacturing uses a job order cost accounting system. on october 1 the company has a
Cynthia gives her son stock with a basis in her hands of $65,000 and a fair market value of $60,000. No gift tax is paid. Son subsequently sells the stock for $63,000. What is his recognized gain or loss?
Dee Corporation's profits on the land will be ordinary income. What are the tax consequences of the asset transfer and land sales if Gene contributes the land to Dee Corporation in exchange for all of its stock? What alternative methods can be use..
Texon Oil is being sued for price fixing and environmental damage. The litigation started this year and is expected to last five years. There is no doubt that Texon is guilty but the settlement cost will be between $3 billion and $22 billion. Brie..
What is a "conceptual framework" and why is it important in the standard setting process?
a retail department store used the following cost-volume relationship were used in developing a flexible budget for the
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd