K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $46,200 of...

 

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K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $46,200 of personal cash to the partnership. Rosen owns land worth $17,800 and a small building worth $82,500, which she transfers to the partnership. Toso transfers to the partnership cash of $11,400, accounts receivable of $33,800, and equipment worth $14,800. The partnership expects to collect $30,420 of the accounts receivable. Prepare the journal entries to record each of the partners' investments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record investment of Decker.) (To record investment of Rosen.) > > (To record investment of Toso.) Income Summary Decker, Drawings Land Accounts Payable Decker, Capital Cash Toso, Drawings Equipment Allowance for Doubtful Accounts Buildings Rosen, Capital Rosen, Drawings Salaries Expense Loss on Realization Accounts Receivable Toso, Capital Notes Payable Gain on Realization Inventory Accumulated Depreciation - Equipment Accumulated Depreciation - Equipment Net (Loss) Income Depreciation Expense What amount would be reported as total owners' equity immediately after the investments? Total owners' equity $ +A Suzy Vopat has owned and operated a proprietorship for several years. On January 1, she decides to terminate this business and become a partner in the firm of Vopat and Sigma. Vopat's investment in the partnership consists of $11,000 in cash, and the following assets of the proprietorship: accounts receivable $14,000 less allowance for doubtful accounts of $1,500, and equipment $19,000 less accumulated depreciation of $3,500. It is agreed that the allowance for doubtful accounts should be $2,250 for the partnership. The fair value of the equipment is $12,500. Journalize Vopat's admission to the firm of Vopat and Sigma. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 > > Allowance for Doubtful Accounts Suzy Vopat, Capital Accumulated Depreciation - Equipment Notes Payable Accounts Receivable Suzy Vopat, Drawings Income Summary Net (Loss) Income Salaries Expense Loss on Realization Equipment Cash Inventory Depreciation Expense Gain on Realization Accounts Payable Coburn (beginning capital, $55,000) and Webb (beginning capital $80,000) are partners. During 2022, the partnership earned net income of $65,000, and Coburn made drawings of $14,000 while Webb made drawings of $20,000. Assume the partnership income-sharing agreement calls for income to be divided 30% to Coburn and 70% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts Inventory Gain on Realization Notes Payable Coburn, Capital Accounts Receivable Cash Income Summary Loss on Realization Webb, Capital Depreciation Expense Net (Loss) Income Equipment Accounts Payable Coburn, Drawings Webb, Drawings Accumulated Depreciation - Equipment Salaries Expense Assume the partnership income-sharing agreement calls for income to be divided with a salary of $29,000 to Coburn and $22,000 to Webb, with the remainder divided 30% to Coburn and 70% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit > Webb, Capital Allowance for Doubtful Accounts Notes Payable Income Summary Cash Gain on Realization Depreciation Expense Salaries Expense Coburn, Capital Webb, Drawings Net (Loss) Income Loss on Realization Inventory Coburn, Drawings Accumulated Depreciation - Equipment Equipment Accounts Receivable Accounts Payable Assume the partnership income-sharing agreement calls for income to be divided with a salary of $34,000 to Coburn and $29,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Income Summary Loss on Realization Coburn, Capital Cash Gain on Realization Webb, Capital Notes Payable Inventory Net (Loss) Income Depreciation Expense Webb, Drawings Accumulated Depreciation - Equipment Equipment Accounts Payable Allowance for Doubtful Accounts Accounts Receivable Coburn, Drawings Salaries Expense Compute the partners' ending capital balances under the assumption in part (c) above. Ending capital Coburn $ Webb LA $ For Crane Co., beginning capital balances on January 1, 2022, are Nancy Payne $19,600 and Ann Dody $15,100. During the year, drawings were Payne $8,500 and Dody $4,100. Net income was $29,900, and the partners share income equally. Prepare the partners' capital statement for the year. (List items that increase partners' capital first.) CRANE CO. Partners' Capital Statement N. Payne $ A. Dody $ Total +A > Drawings Expenses Net Income/(Loss) Capital, January 1 Capital, December 31 Revenues Total Expenses Total Revenues > Add Less Drawings Expenses Net Income/(Loss) Capital, January 1 Capital, December 31 Revenues Total Expenses Total Revenues CRANE CO. Partners' Capital Statement December 31, 2022 For the Year Ended December 31, 2022 For the Month Ended December 31, 2022 lod Prepare the owners' equity section of the balance sheet at December 31, 2022. CRANE CO. Partial Balance Sheet +A $ +A $ CRANE CO. Partial Balance Sheet For the Month Ended December 31, 2022 December 31, 2022 For the Year Ended December 31, 2022 Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Owners' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Owner's Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Owners' Equity Capital, December 31 Capital, January 1 Net Income Drawings A. Dody, Capital N. Payne, Capital Drawings Net Income Capital, December 31 N. Payne, Capital A. Dody, Capital Capital, January 1 Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Owners' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Owner's Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Owners' Equity Crane Company at December 31 has cash $23,400, noncash assets $103,000, liabilities $55,600, and the following capital balances: Floyd $42,000 and DeWitt $28,800. The firm is liquidated, and $120,000 in cash is received for the noncash assets. Floyd and DeWitt income ratios are 70% and 30%, respectively. Crane Company decides to liquidate the partnership. Prepare the entries to record: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) a. The sale of noncash assets. b. The allocation of the gain or loss on realization to the partners. C. Payment of creditors. d. Distribution of cash to the partners. Account Titles and Explanation a. b. d. > Debit > > > > Credit > Floyd, Capital Net (Loss) Income Accumulated Depreciation - Equipment Notes Payable Income Summary Liabilities Allowance for Doubtful Accounts Cash Noncash Assets Gain on Realization Inventory Depreciation Expense DeWitt, Capital Accounts Receivable Loss on Realization Salaries Expense Floyd, Drawings Equipment DeWitt, Drawings Accounts Payable Prior to the distribution of cash to the partners, the accounts in the Sunland Company are Cash $32,800; Vogel, Capital (Cr.) $19,000; Utech, Capital (Cr.) $17,000; and Pena, Capital (Dr.) $3,200. The income ratios are 5:3:2, respectively. Sunland Company decides to liquidate the company. (a) Prepare the entry to record (1) Pena's payment of $3,200 in cash to the partnership and (2) the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (2) Gain on Realization Equipment Salaries Expense Allowance for Doubtful Accounts Inventory Vogel, Capital Cash Accounts Payable Accumulated Depreciation - Equipment Loss on Realization Accounts Receivable Utech, Drawings Income Summary Pena, Capital Vogel, Drawings Distributions Utech, Capital Net (Loss) Income Pena, Drawings Depreciation Expense Prepare the entry to record (1) the absorption of Pena's capital deficiency by the other partners and (2) the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) Debit Credit Notes Payable Distributions Allowance for Doubtful Accounts Cash Accounts Payable Accumulated Depreciation - Equipment Utech, Capital Net (Loss) Income Inventory Equipment Salaries Expense Depreciation Expense Utech, Drawings Vogel, Capital Accounts Receivable Pena, Capital Vogel, Drawings Pena, Drawings Loss on Realization Loss on Realization Income Summary Gain on Realization K. Kolmer, C. Eidman, and C. Ryno share income on a 5:3:2 basis. They have capital balances of $31,400, $29,400, and $24,000, respectively, when Don Jernigan is admitted to the partnership. Prepare the journal entry to record the admission of Don Jernigan under each of the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) a. Don Jernigan purchases of 50% of Kolmer's equity for $18,300. b. Don Jernigan purchases of 50% of Eidman's equity for $7,400. Debit Credit C. Don Jernigan purchases of 331/3% of Ryno's equity for $12,000. a. Account Titles and Explanation b. C. > > > Distributions Loss on Realization Allowance for Doubtful Accounts Accounts Payable Depreciation Expense Salaries Expense C. Ryno, Capital Accumulated Depreciation - Equipment Income Summary Notes Payable Gain on Realization D. Jernigan, Capital Net (Loss) Income C. Eidman, Capital K. Kolmer, Drawings D. Jernigan, Drawings C. Eidman, Drawings K. Kolmer, Capital Accounts Receivable C. Ryno, Drawings Equipment Cash Inventory S. Pagan and T. Tabor share income on a 6:4 basis. They have capital balances of $103,000 and $55,000, respectively, when W. Wolford is admitted to the partnership. Prepare the journal entry to record the admission of W. Wolford under each of the following assumptions. (a) Investment of $99,000 cash for a 30% ownership interest with bonuses to the existing partners. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Loss on Realization Equipment Income Summary T. Tabor, Capital Salaries Expense Gain on Realization Accumulated Depreciation - Equipment S.Pagan, Capital Notes Payable S.Pagan, Drawings Net (Loss) Income Distributions Accounts Payable W. Wolford, Drawings Allowance for Doubtful Accounts W. Wolford, Capital Accounts Receivable Depreciation Expense T. Tabor, Drawings W. Wolford, Capital Accounts Receivable Depreciation Expense T. Tabor, Drawings Cash Inventory Investment of $47,000 cash for a 30% ownership interest with a bonus to the new partner. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts T. Tabor, Capital S.Pagan, Drawings Distributions Salaries Expense Equipment S.Pagan, Capital Accumulated Depreciation - Equipment Cash Loss on Realization Depreciation Expense Notes Payable Inventory Gain on Realization Income Summary Accounts Receivable W. Wolford, Capital Net (Loss) Income T. Tabor, Drawings T. Tabor, Drawings Accounts Payable W. Wolford, Drawings K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $46,200 of personal cash to the partnership. Rosen owns land worth $17,800 and a small building worth $82,500, which she transfers to the partnership. Toso transfers to the partnership cash of $11,400, accounts receivable of $33,800, and equipment worth $14,800. The partnership expects to collect $30,420 of the accounts receivable. Prepare the journal entries to record each of the partners' investments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record investment of Decker.) (To record investment of Rosen.) > > (To record investment of Toso.) Income Summary Decker, Drawings Land Accounts Payable Decker, Capital Cash Toso, Drawings Equipment Allowance for Doubtful Accounts Buildings Rosen, Capital Rosen, Drawings Salaries Expense Loss on Realization Accounts Receivable Toso, Capital Notes Payable Gain on Realization Inventory Accumulated Depreciation - Equipment Accumulated Depreciation - Equipment Net (Loss) Income Depreciation Expense What amount would be reported as total owners' equity immediately after the investments? Total owners' equity $ +A Suzy Vopat has owned and operated a proprietorship for several years. On January 1, she decides to terminate this business and become a partner in the firm of Vopat and Sigma. Vopat's investment in the partnership consists of $11,000 in cash, and the following assets of the proprietorship: accounts receivable $14,000 less allowance for doubtful accounts of $1,500, and equipment $19,000 less accumulated depreciation of $3,500. It is agreed that the allowance for doubtful accounts should be $2,250 for the partnership. The fair value of the equipment is $12,500. Journalize Vopat's admission to the firm of Vopat and Sigma. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 > > Allowance for Doubtful Accounts Suzy Vopat, Capital Accumulated Depreciation - Equipment Notes Payable Accounts Receivable Suzy Vopat, Drawings Income Summary Net (Loss) Income Salaries Expense Loss on Realization Equipment Cash Inventory Depreciation Expense Gain on Realization Accounts Payable Coburn (beginning capital, $55,000) and Webb (beginning capital $80,000) are partners. During 2022, the partnership earned net income of $65,000, and Coburn made drawings of $14,000 while Webb made drawings of $20,000. Assume the partnership income-sharing agreement calls for income to be divided 30% to Coburn and 70% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts Inventory Gain on Realization Notes Payable Coburn, Capital Accounts Receivable Cash Income Summary Loss on Realization Webb, Capital Depreciation Expense Net (Loss) Income Equipment Accounts Payable Coburn, Drawings Webb, Drawings Accumulated Depreciation - Equipment Salaries Expense Assume the partnership income-sharing agreement calls for income to be divided with a salary of $29,000 to Coburn and $22,000 to Webb, with the remainder divided 30% to Coburn and 70% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit > Webb, Capital Allowance for Doubtful Accounts Notes Payable Income Summary Cash Gain on Realization Depreciation Expense Salaries Expense Coburn, Capital Webb, Drawings Net (Loss) Income Loss on Realization Inventory Coburn, Drawings Accumulated Depreciation - Equipment Equipment Accounts Receivable Accounts Payable Assume the partnership income-sharing agreement calls for income to be divided with a salary of $34,000 to Coburn and $29,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Income Summary Loss on Realization Coburn, Capital Cash Gain on Realization Webb, Capital Notes Payable Inventory Net (Loss) Income Depreciation Expense Webb, Drawings Accumulated Depreciation - Equipment Equipment Accounts Payable Allowance for Doubtful Accounts Accounts Receivable Coburn, Drawings Salaries Expense Compute the partners' ending capital balances under the assumption in part (c) above. Ending capital Coburn $ Webb LA $ For Crane Co., beginning capital balances on January 1, 2022, are Nancy Payne $19,600 and Ann Dody $15,100. During the year, drawings were Payne $8,500 and Dody $4,100. Net income was $29,900, and the partners share income equally. Prepare the partners' capital statement for the year. (List items that increase partners' capital first.) CRANE CO. Partners' Capital Statement N. Payne $ A. Dody $ Total +A > Drawings Expenses Net Income/(Loss) Capital, January 1 Capital, December 31 Revenues Total Expenses Total Revenues > Add Less Drawings Expenses Net Income/(Loss) Capital, January 1 Capital, December 31 Revenues Total Expenses Total Revenues CRANE CO. Partners' Capital Statement December 31, 2022 For the Year Ended December 31, 2022 For the Month Ended December 31, 2022 lod Prepare the owners' equity section of the balance sheet at December 31, 2022. CRANE CO. Partial Balance Sheet +A $ +A $ CRANE CO. Partial Balance Sheet For the Month Ended December 31, 2022 December 31, 2022 For the Year Ended December 31, 2022 Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Owners' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Owner's Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Owners' Equity Capital, December 31 Capital, January 1 Net Income Drawings A. Dody, Capital N. Payne, Capital Drawings Net Income Capital, December 31 N. Payne, Capital A. Dody, Capital Capital, January 1 Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Owners' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Owner's Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Owners' Equity Crane Company at December 31 has cash $23,400, noncash assets $103,000, liabilities $55,600, and the following capital balances: Floyd $42,000 and DeWitt $28,800. The firm is liquidated, and $120,000 in cash is received for the noncash assets. Floyd and DeWitt income ratios are 70% and 30%, respectively. Crane Company decides to liquidate the partnership. Prepare the entries to record: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) a. The sale of noncash assets. b. The allocation of the gain or loss on realization to the partners. C. Payment of creditors. d. Distribution of cash to the partners. Account Titles and Explanation a. b. d. > Debit > > > > Credit > Floyd, Capital Net (Loss) Income Accumulated Depreciation - Equipment Notes Payable Income Summary Liabilities Allowance for Doubtful Accounts Cash Noncash Assets Gain on Realization Inventory Depreciation Expense DeWitt, Capital Accounts Receivable Loss on Realization Salaries Expense Floyd, Drawings Equipment DeWitt, Drawings Accounts Payable Prior to the distribution of cash to the partners, the accounts in the Sunland Company are Cash $32,800; Vogel, Capital (Cr.) $19,000; Utech, Capital (Cr.) $17,000; and Pena, Capital (Dr.) $3,200. The income ratios are 5:3:2, respectively. Sunland Company decides to liquidate the company. (a) Prepare the entry to record (1) Pena's payment of $3,200 in cash to the partnership and (2) the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (2) Gain on Realization Equipment Salaries Expense Allowance for Doubtful Accounts Inventory Vogel, Capital Cash Accounts Payable Accumulated Depreciation - Equipment Loss on Realization Accounts Receivable Utech, Drawings Income Summary Pena, Capital Vogel, Drawings Distributions Utech, Capital Net (Loss) Income Pena, Drawings Depreciation Expense Prepare the entry to record (1) the absorption of Pena's capital deficiency by the other partners and (2) the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) Debit Credit Notes Payable Distributions Allowance for Doubtful Accounts Cash Accounts Payable Accumulated Depreciation - Equipment Utech, Capital Net (Loss) Income Inventory Equipment Salaries Expense Depreciation Expense Utech, Drawings Vogel, Capital Accounts Receivable Pena, Capital Vogel, Drawings Pena, Drawings Loss on Realization Loss on Realization Income Summary Gain on Realization K. Kolmer, C. Eidman, and C. Ryno share income on a 5:3:2 basis. They have capital balances of $31,400, $29,400, and $24,000, respectively, when Don Jernigan is admitted to the partnership. Prepare the journal entry to record the admission of Don Jernigan under each of the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) a. Don Jernigan purchases of 50% of Kolmer's equity for $18,300. b. Don Jernigan purchases of 50% of Eidman's equity for $7,400. Debit Credit C. Don Jernigan purchases of 331/3% of Ryno's equity for $12,000. a. Account Titles and Explanation b. C. > > > Distributions Loss on Realization Allowance for Doubtful Accounts Accounts Payable Depreciation Expense Salaries Expense C. Ryno, Capital Accumulated Depreciation - Equipment Income Summary Notes Payable Gain on Realization D. Jernigan, Capital Net (Loss) Income C. Eidman, Capital K. Kolmer, Drawings D. Jernigan, Drawings C. Eidman, Drawings K. Kolmer, Capital Accounts Receivable C. Ryno, Drawings Equipment Cash Inventory S. Pagan and T. Tabor share income on a 6:4 basis. They have capital balances of $103,000 and $55,000, respectively, when W. Wolford is admitted to the partnership. Prepare the journal entry to record the admission of W. Wolford under each of the following assumptions. (a) Investment of $99,000 cash for a 30% ownership interest with bonuses to the existing partners. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Loss on Realization Equipment Income Summary T. Tabor, Capital Salaries Expense Gain on Realization Accumulated Depreciation - Equipment S.Pagan, Capital Notes Payable S.Pagan, Drawings Net (Loss) Income Distributions Accounts Payable W. Wolford, Drawings Allowance for Doubtful Accounts W. Wolford, Capital Accounts Receivable Depreciation Expense T. Tabor, Drawings W. Wolford, Capital Accounts Receivable Depreciation Expense T. Tabor, Drawings Cash Inventory Investment of $47,000 cash for a 30% ownership interest with a bonus to the new partner. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts T. Tabor, Capital S.Pagan, Drawings Distributions Salaries Expense Equipment S.Pagan, Capital Accumulated Depreciation - Equipment Cash Loss on Realization Depreciation Expense Notes Payable Inventory Gain on Realization Income Summary Accounts Receivable W. Wolford, Capital Net (Loss) Income T. Tabor, Drawings T. Tabor, Drawings Accounts Payable W. Wolford, Drawings