User Account

All Pages

Journalize the additional cash investment by each partner

Assignment Help Accounting Basics
Reference no: EM131131929

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

John and Calvin decide to form a partnership, John-Calvin 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 John will invest an additional $3,500 in cash, and Calvin will invest an additional $16,000 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: EM131131929

Questions Cloud

How would you feel as an investor in a company that utilizes : Do you agree with this arrangement? How would you feel as an investor in a company that utilizes carbon credits to legally exceed its pollution limits?
Post to the cash and capitalaccounts : The partners in Apache Company decide to liquidate the firm when the balance sheet shows the following.
Journalize the entry to record the division of net income : Net income is $37,000. Each partner is allowed interest of 10% on beginning capital balances. Kirk is given an $20,000 salary allowance. The remainder is shared equally.
What issues and what benefits can the user derive : A Monte Carla simulation program requires the user to first build an Excel spreadsheet model that captures the input variables for the proposed project. What issues and what benefits can the user derive from this process?
Journalize the additional cash investment by each partner : Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.
The cash paid by the partnership to durham : Each of the continuing partners agrees to pay $18,000 in cash from personal funds to purchase Durham's ownership equity. Each receives 50% of Durham's equity.
Journalize the admission of atchley under each : Kensington's capital balance is $32,000 after admitting Atchley to the partnership by investment. If Kensington's ownership interest is 20% of total partnership capital, what were?
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.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the journal entry to record issuance

Sudoku Company issues 7,000 shares of $ 7 par value common stock in exchange for land and a building

  You have just been hired as a consultant to tangier

you have just been hired as a consultant to tangier industries a newly formed company. the company president john meeks

  Larsen corporation reported 100000 in revenues in its 2010

larsen corporation reported 100000 in revenues in its 2010 financial statements of which 44000 will not be included in

  What is meant by the separation of duties

What is meant by the separation of duties? When does this concept come into play? Provide a business situation where separation of duties is important.

  Martin is married and claims four exemptions on his w- 4

martin is married and claims four exemptions on his w- 4. what is his federal income tax withholding under the

  Explain how making more products that can be sold ina

explain how making more products that can be sold ina period can increase a companys operating income. shouldthis

  Is nepco more or less profitable than its competitor

Prepare an income statement and a statement of retained earnings for July, and a classified balance sheet as of July 31. (These financial statements would be considered preliminary because they use unadjusted balances.) Calculate the net profit marg..

  Tony matheson plans to graduate from college in may 2012

tony matheson plans to graduate from college in may 2012 after spending four years earning a degree in sports and

  What method yields the highest depreciation expense for

waldum company purchased packaging equipment on january 5 2012 for 135000. the equipment was expected to have a useful

  If income tax expense for the current year was 50600 and

cash flows from operating activities - direct methodthe cash flows from operating activities are reported by the direct

  Compare the performance of s amp s air to the industry for

chris guthrie was recently hired by samps air inc. to assist the company with its financial planning and to evaluate

  What is alexandra basis in the land

Dove Corporation had purchased the land as an investment three years ago for $375,000, and the land was distributed subject to a $270,000 liability. Alexandra took the land subject to the $270,000 liability. What is Alexandra's basis in the land?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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