Solve the following problems: 1. (5 points)Mark, Alex, Ryan formed a partnership on October 1, 2024. Investments are as follows:

1. 50000 Cash from Mark
2. 15000 Cash & 20000 Equipment from Alex, its current fair value is 80% of its cost
3. Ryan said he will be the manager of the business, he will receive 20% share in profits

Prepare the Journal Entries.

2.(15 points)Aries has a bookstore, which has been operating for 3 years. On September 1, 2024, Wesley invited him to put a partnership. Aries agreed to close his business and invest his net assets in the Partnership. Welsey agrees to put up cash equal to 3/4 of the contribution of Aries.

The following are the asset and liabilities of the bookstore

	Debit	Credit
Cash	11000
Accounts Receivable	60000
Allowance for Bad Debts		1500
Merchandise Inventory	35000
Furniture	10000
Accumulated Depreciation		1000
Accounts Payable		29000
Aries, Capital		84500
Total	11600	11600

Articles of Co-partnership considerations:

1. The allowance for Bad Debts should be adjusted to 25% of the A/R

2. The Furniture should be 35% depreciated

3. Obsolete Merchandise Inventory to 10000 should be written off

4. Both partners will act as managing partners and share profit and losses according to their capital contribution

Prepare the Journal Entries for Aries' Books and the partnership books and their respective Computations. No computation, no points.

3. (5 points)Ryan, Hannah, Aura, they contributed what follows respectively:

Ryan - 100,000 Cash

Hannah - 200,000 Equipment

Aura - 300,000 Land

They agreed to distribute profit and loss equally. At the end of the year the business earned a net income of 90,000

Prepare the Journal Entries.

4. (10 points)The following are Mindy and Clacyn's Equity Balance

The following T accounts show the capital accounts. The partner's earned 600,000 as net income for the year. If they use theAverage Capital Ratio, what would be their division of profit?

Prepare the Journal Entry. Show your computations.