Partnership assumes responsibility

Assignment Help Financial Accounting

Reference no: EM131204929

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $340,000; the partnership assumes responsibility for a $120,000 note secured by a mortgage on the property. Monroe invests $95,000 in cash and equipment that has a market value of $70,000. For the partnership, the amounts recorded for the building and for Fontaine's Capital account are:

Reference no: EM131204929

Questions Cloud

After brokerage fees and other costs of issuance : On December 31, 2017, Pina Company had $1,107,000 of short-term debt in the form of notes payable due February 2, 2018. On January 21, 2018, the company issued 26,800 shares of its common stock for $29 per share, receiving $777,200 proceeds after bro..

Tax consequences of transactions related to stock options : Frank is a lawyer who works for GT Law Firm in Dallas, Texas. Frank lives in Frisco, Texas which is 25 miles from his office in Dallas. Frank does not like Frisco and decides it would be best to move to Stephenville, Texas and commute the 109 miles t..

Financial accounting standards board : Everyone on the bus! It's time for a field trip. Travel to the site of the Financial Accounting Standards Board (FASB) and search for the Generally Accepted Accounting Principles (GAAP). What are some of the responsibilities of the FASB? What is the ..

Prepared personal financial statements : Jane Wilson has prepared personal financial statements in which her assets are valued at her historical cost, less appropriate depreciation. Is this presentation in conformity with generally accepted accounting principles? Can a public accounting fir..

Partnership assumes responsibility : Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $340,000; the partnership assumes responsibility for a $120,000 note secured by a mortgage on the property. Monroe invests $95,000 in cash and equip..

Presented in technical language and are incomprehensible : An accountant of an audit client made the following statement: “It is important to read the notes to financial statements, even though they are presented in technical language and are incomprehensible. areas of misconception, incompleteness, or falla..

Dollar savers report as gross profit in the current year : Dollar Savers Corporation perates general merchandise stores that feature quality merchandise at low prices. All stores are located in the United States, predominantly in small towns in 24 midwestern and southeastern states. In the current year, the ..

Dividends stock investments unrealized gain : Gambino Cosmetics acquired 10% of the 190,000 shares of common stock of Nevins Fashion at a total cost of $13 per share on March 18, 2017. On June 30, Nevins declared and paid a $40,000 dividend. On December 31, Nevins reported net income of $112,000..

Changing the various aspects of the accounting profession : Describing how information systems are changing the various aspects of the accounting profession. Include a description of a variety of new technologies and their effects on accounting processes. Discuss how these technologies have changed the way ac..

User Account

All Pages