The Balance Sheet of the XY partnership on December 31, 2018, appears below. Cash $ 60,000...

 

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The Balance Sheet of the XY partnership on December 31, 2018, appears below. Cash $ 60,000 Liabilities $ 60,000 Other Assets 200,000 90,000 110.000 $260.000 X, Capital Y, Capital Total Assets $260.000 Total Liabilities and Capital X and Y share profits and losses in the ratio 60:40. Each of the following questions is independent of the others. Prepare journal entries for each of the following: Use bonus method where appropriate and show all computations. a) Refer to the above information. Assume that Z purchases a one-fourth proportionate total capital interest directly from Y for a total of $60,000. b) Refer to the above information. Assume Z invests $60,000 cash into the XY partnership for a one-fourth interest in partnership capital and profits. c) Refer to the above information. Assume that Z invests $80,000 cash into the XY partnership for a one-fifth interest in partnership capital and profits. d) Refer to the above information. Assume that Z invests $50,000 cash into the XY partnership for a one fifth interest in partnership capital and profits. The Balance Sheet of the XY partnership on December 31, 2018, appears below. Cash $ 60,000 Liabilities $ 60,000 Other Assets 200,000 90,000 110.000 $260.000 X, Capital Y, Capital Total Assets $260.000 Total Liabilities and Capital X and Y share profits and losses in the ratio 60:40. Each of the following questions is independent of the others. Prepare journal entries for each of the following: Use bonus method where appropriate and show all computations. a) Refer to the above information. Assume that Z purchases a one-fourth proportionate total capital interest directly from Y for a total of $60,000. b) Refer to the above information. Assume Z invests $60,000 cash into the XY partnership for a one-fourth interest in partnership capital and profits. c) Refer to the above information. Assume that Z invests $80,000 cash into the XY partnership for a one-fifth interest in partnership capital and profits. d) Refer to the above information. Assume that Z invests $50,000 cash into the XY partnership for a one fifth interest in partnership capital and profits.

Answer rating: 100% (QA)

a Ys Capital ac Dr 60000 To Zs Capital ac 60000 b Cash ac Dr 60000 To Zs ... View the full answer