Wally, Willie, and Watson formed a partnership several years ago. Wally has decided to withdraw from...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Wally, Willie, and Watson formed a partnership several years ago. Wally has decided to withdraw from the partnership. The current capital balances are: Wally, capital, $50,000; Willie, capital, $65,000; and Watson, capital, $100,000. Prior to the withdrawal of Wally, the partners agree to revalue some of the partnership assets. Inventory with a cost of $120,000 has a current market value of $125,000, land with a cost of $50,000 has a current market value of $125,000. Wally, Willie, and Watson share net income and losses in a 3:3:4 ratio. Willie and Watson will share net income in a 34 ratio. What would the jounal entry to record the revaluation of the partnership's assots include? A. crodit to Watson, Capital of $42,000 B. debit to Land of $75,000 OC. debit to Inventory of $30,000 OD. All of these would be included. Wally, Willie, and Watson formed a partnership several years ago. Wally has decided to withdraw from the partnership. The current capital balances are: Wally, capital, $50,000; Willie, capital, $65,000; and Watson, capital, $100,000. Prior to the withdrawal of Wally, the partners agree to revalue some of the partnership assets. Inventory with a cost of $120,000 has a current market value of $125,000, land with a cost of $50,000 has a current market value of $125,000. Wally, Willie, and Watson share net income and losses in a 3:3:4 ratio. Willie and Watson will share net income in a 34 ratio. What would the jounal entry to record the revaluation of the partnership's assots include? A. crodit to Watson, Capital of $42,000 B. debit to Land of $75,000 OC. debit to Inventory of $30,000 OD. All of these would be included.
Expert Answer:
Answer rating: 100% (QA)
Distribution of Profits on Revaluation Revaluation Account Partic... View the full answer
Related Book For
Financial Accounting Theory and Analysis Text and Cases
ISBN: 978-1119386209
12th edition
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
Posted Date:
Students also viewed these finance questions
-
M and N formed an equal partnership several years ago to which each contributed cash. On January 1 of the current year the partnership holds cash of $1,000, and equipment with a basis of $1,750 and a...
-
Bob created MNO Inc. several years ago and has owned all 10 outstanding shares of MNO Inc. since the creation of MNO Inc. The fair market value of those shares is now $50,000. Bobs friend, Lee, owns...
-
Beekey Limited is being wound up by the tribunal. All the assets of the company have been charged in favour of the company's bankers to whom the company owes 2.50 crores. The company owes following...
-
When developing cost functions, which of the following statements is FALSE? A. Personal observations of costs and activities provide the best evidence of a plausible relationship between a cost and...
-
A recent survey conducted for the National Association of Broadcasters investigated satellite radio subscriber service and usage. The June 2007 survey, conducted by Wilson Research Strategies,...
-
You are an independent consultant currently working for Philip Morris. Competitors are alleging that in important developing markets such as Turkey, Philip Morris created special tobacco blends...
-
Describe the categories of intentional torts. What is the difference between assault and battery? What is defamation of character? What two forms can it take? Under what circumstances can a...
-
Miranda, Inc., manufactures and sells commercial and residential security equipment. The comparative unclassified balance sheets for December 31, 2011 and 2010 are provided below. Selected missing...
-
Get the data set of these topologies from Internet Topology Zoo [1], download GML, GraphML files of DFN and AARNet topology. Using auto Mininet [4] convert them into .py format. Use any one topology...
-
Kramer Corporation enters a contract to sell 100 custom-made iron pipes to a customer for $300,000 on December 31, 2016, and the customer pays the full amount on that date. The sales contract...
-
Consider a hypothetical price-weighted index created using the three stocks below: Stock Price before split Price after split Outstanding Shares (mil) before split Outstanding Shares (mil) after...
-
What is a major area in Information Technology (IT) where accounting has left its impact? Explain.
-
The pharmacy s recipe book provides a formula that yields 1 0 0 g of an ointment. You are asked to prepare an 8 0 g jar of the ointment. By what number do you need to multiply each ingredient to...
-
Calculate portion yields and EP cost per unit for the following information: You have purchased 5 kg of pork loin for $35 and need to remove 500 grams of fat from the meat.
-
what ways do biases, both conscious and unconscious, influence ethical decision-making, and what strategies can be employed to mitigate their effects and promote fairness and equity?
-
Smith and Daughter Inc has a beta of 0.9, the risk-free rate is 3.2%, and the expected market risk premium 5%. Brady Enterprise expected return is 8%. a. Calculate the required return for Brady...
-
Neil sells illegal drugs. Morgan creates copies of music downloads and sells them. Only Morgan's transaction is included in GDP. Neither Neil nor Morgan's transaction is included in GDP. Only Neil's...
-
If the amplifier indicated by the box input impedance of oo, which of the following statements are true ? has an open loop gain as well as Feedback factor (\beta = 1/ R_1\) The feedback is voltage...
-
On January 1, 2016, Plywood Homes, Inc., issued 20year, 4 percent bonds having a face value of $1 million. The interest on the bonds is payable semiannually on June 30 and December 31. The proceeds...
-
In 2013 Airbus announced a contract to deliver 50 A380 airplanes to Emirates for $20 billion to be delivered between 2016 and 2018. Required: Outline the fivestep revenue recognition process for this...
-
Discuss how a company's primary financial statements are useful to potential investors who are trying to decide whether to buy stock in the company. Support your discussion by citing objectives...
-
Consider a Poisson regression. Let \(e_{i}=y_{i}-\widehat{\mu}_{i}\) denote the \(i\) th ordinary residual. Assume that an intercept is used in the model so that one of the explanatory variables...
-
a. Assume that \(y_{1}, \ldots, y_{n}\) are i.i.d. with a negative binomial distribution with parameters \(r\) and \(p\). Determine the maximum likelihood estimators. b. Use the sampling mechanism in...
-
For the data in Table 12.1, confirm that the Pearson statistic in equation (12.3) is 41.98 . Table 12.1 (12.3) Count Observed (j) (nj) Fitted Counts Using the Poisson Distribution (np;) 01234 6,996...
Study smarter with the SolutionInn App