Course Hero Logo

dissolution-solution.xlsx - Purchase of Interest from one...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 7 out of 12 pages.

Purchase of Interest from one partneCorie purchase 1/2 of Annie's capitalJournal Entries:Annie, Capital(150,000 x 1/2)Corie, Capital
er:for P 100,00075,00075,000
Requirement A:Annie, Capital30,000(150,000 x 20%)Bonnie, Capital50,000(250,000 x 20%)Corie, Capital80,000Requirement B:AnnieBonnieCorieTotalCapital, beg.150,000250,000400,000Sale of Interest to Corie-30000-50,00080,000Capital, end.120,000200,00080,000400,000Requirement C:Zero no gain or loss is recognized in the patnership's books when a new partner is admitted.Requirement D:AnnieBonnieTotalDebit to capital account30,00050,00080,0008,00012,00020,000Share in the payment of Corie38,00062,000100,000Debit to capital account30,00050,00080,000Personal gain (loss)8,00012,00020,000The personal gains of the selling partners are not recorded in the partnership booksThe old partners divide the payment of Corie based on whateverthey have agreed upon.Excess allocated based on P/Lratio (100k payment of Corie-80k credit to corie) x 40%&60%
Rquirement A:Equipment50,000Annie, Capital20,000 (50,000X40%)Bonnie, Capital30,000 (50,000X60%)Adjusted Capital is computed as follows:AnnieBonneTotalsUnadjusted Capital130,000220,000350,000Share in revaluation20,00030,00050,000Adjusted Capital150,000250,000400,000Corie's Admission is recorded as follows:Annie, Capital30,000(150,000X20%)Adjusted CapitalBonnie, Capital50,000(250,000X20%)Corie, Capital

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 12 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
N/A
Tags

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture