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Partnership Dissulotion.docx - Problem 4: Multiple Choices...

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Problem 4: Multiple Choices – Computational1. B. 280,000A, Capital (620,000 x 20%)124,000B, Capital (400,000 x 20%)80,000C, Capital (380,000 x 20%)76,000D, Capital (124,000 + 80,000 + 76,000)280,0002. B. 43,200Payment of D132,000Capital credit given to D (444,000 x 1/5)88,800Combined personal gain of A and B43,2003. C. 81,250Journal Entry:Cash150,000A, Capital (75,000 x 3/4)56,250B, Capital (75,000 x 1/4 )18,750D, Capital ((300,000 + 150,000) x 50%) 225,000To record the admission of C to the partnershipNet assets before admission300,000Investment of C150,000Net assets after submission450,000C’s interest in net assets50%C’s capital credit225,000Investment of C150,000Bonus to C75,000Capital balances after admission of CABCTotalCapital, before admission200,000100,000-300,000Investment of C--150,000150,000Bonus to C(56,250)(18,750)75,000-Capital, after admission143,75081,250225,000450,0004. A. 214,062.50, 104,687.50, and 106,250 respectivelyCash125,000C, Capital [(300k + 125k) x 25%]106,250
A, Capital (18,750 x 75%)14,062.50B, Capital (18,750 x 25%)4,687.50To record the admission of C to the partnershipNet assets before admission300,000Investment of C125,000Net assets after admission425,000C’s interest in net assets25%C’s capital credit106,250Investment of C125,000Bonus to old partners(18,750)ABCTotalCapital, before admission200,000100,000-300,000

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Term
Spring
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Tags
Capital accumulation, Andre

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