Robin,Cardinal, Jay are partners sharing profits and losses 30/30/40 respectively. Their capital balances are: Robin $175,000 Cardinal

Fantastic news! We've Found the answer you've been seeking!

Question:

Robin,Cardinal, Jay are partners sharing profits and losses 30/30/40 respectively. Their capital balances are:

Robin $175,000

Cardinal $300,000

Jay $275,000

total $750,000

The old and partners agree that the assets are undervalued by $100,000.

a. Record the adjustment to the books before the new partner is admitted.

b. Assume sparrow invests in the partnership $250,000 and partners agree thereafter to share profits and losses equally. Record the entry of Sparrow using the bonus method whereby Sparrow receives 20% interest in the firm.

Related Book For answer-question

Advanced Financial Accounting

ISBN: 978-0078025624

10th edition

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

See More Books

Posted Date: Oct 18, 2022 08:41 AM

See More Questions

A and B are partners sharing profits and losses equally and have the following capital balances: P50,000 and P75,000, respectively. C, new partner, acquired 25% interest in the partnership by way of...
James and Bond are partners sharing profits and losses equally after allowing James a salary of $ 20 000 per annum. On 1 January 2013 their capital and current account balances were as follows James...
MYRNA and NORMA are partners sharing profits and losses in the ratio of 60% and 40%, respectively. The partnership balance sheet at August 30, 2020 follows: Cash P 27,000 Accounts payable P 30,000...
Pop Corporation acquired 80 percent of Son Corporation's common stock on January 1, 2016, for $420,000 cash. The stockholders' equity of Son at this time consisted of $300,000 capital stock and...
What are some causes of auditors becoming defendants in lawsuits?
People are willing to buy and store shares of stock despite the fact that their purchase ties up capital. Most people, however, are not willing to buy and store soybeans. What is the difference in...
Pick an industry and a product or service. Engage in a creative-thinking process, as outlined in Chapter 11, to generate an improved offering. Do the same to create an entirely new offering that uses...
The Sentry Lock Corporation manufactures a popular commercial security lock at plants in Macon, Louisville, Detroit, and Phoenix. The per unit cost of production at each plant is $35.50, $37.50,...
sumitomo bank, a large bank in southern california, has just purchased 120 computers to standardized the computer equipment in each of its offices. the purchase was made by the purchasing manager,...
The government has just increased taxes. a. Demonstrate the effect on the price level and output in the standard model. b. How would your answer to a differ if there were partial crowding out? c. How...
Select the correct answer option: Which is the definition of a hazard? The possible severity of injury. Something to avoid contact with. Anything with the potential for harm. A worker working...
Now that the COVID restrictions have been lifted and people can travel overseas, Kathy wishes to travel to Malaysia to visit her family and friends. However the airfare has increased dramatically and...
It is known that the 'placebo effect' is also used in persuasive communication. What do you understand about the placebo effect, describe it briefly and accompany it with an example of what you mean...
What is the book value at the end of the 15th year for an asset with the initial value of P, salvage value of SV, and a life of 20 years? Straight line depreciation method is adopted.
1. According to the book (Juvenile Delinquency Theory and Practice) What are Status Offenses? Discuss the brief history of them and how they differ from youth who commit criminal acts/delinquents. 2....
You have two bonds with the following characteristics: Characteristics Coupon Bond A Bond B 4.0% 4.5% Yield to Maturity 3.44% 3.33% Years to Maturity 7 7 Par Value $1,000 $1,000 Price $845.00 $880.00...
James has the following information regarding his use of direct labor in a recent period: Total direct labor hours worked (AQ) 30,000 Total units manufactured 8,000 Real hourly wage rate (AP) $16...
Conduct a VRIO analysis by ranking Husson University (in Maine) business school in terms of the following six dimensions relative to the top three rival schools. If you were the dean with a limited...
Will the elimination of unrealized intercompany profits on an upstream sale or on a downstream sale in the current period have a greater effect on income assigned to the noncontrolling interest? Why?
Able Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation...
Many companies transfer inventories from one affiliate to another. Often the companies have integrated operations in which one affiliate provides the raw materials, another manufactures finished...
You are in the market for a used car. At a used car lot, you know that the Blue Book value of the car you are looking at is between $15,000 and $19,000. If you believe the dealer knows as much about...
You wish to hire Ron to manage your Dallas operations. The profits from the operations depend partially on how hard Ron works, as follows. If Ron is lazy, he will surf the Internet all day, and he...
You own a house worth $800,000 that is located on a river bank. If the river floods moderately, the house will be completely destroyed. This happens about once every 50 years. If you build a seawall,...

Robin,Cardinal, Jay are partners sharing profits and losses 30/30/40 respectively. Their capital balances are: Robin $175,000 Cardinal

Question:

Expert Answer:

a Adjustment for revaluation of assets Capital Ac Add Revaluation of Asse... View the full answer

Advanced Financial Accounting

Students also viewed these accounting questions