7111AFE_Solution_Topic11_new

7111AFE_Solution_Topic11_new - 7111AFE:Topic11 Tutorial...

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7111AFE: Topic 11 Tutorial Solution P13-3 ADMITTING A NEW PARTNER  (Obj. 4) (20-25 min.) Req. 1 General Journal DATE ACCOUNT TITLES AND EXPLANATIONS POST. REF. DEBIT CREDIT Mar. 31 Clapton, Capital 160,000 Carter, Capital 160,000 To transfer Clapton’s equity in the partnership to Carter. Req. 2 General Journal DATE ACCOUNT TITLES AND EXPLANATIONS POST. REF. DEBIT CREDIT Mar. 31 Cash at Bank 60,000 Carter, Capital 60,000 To admit Carter as a partner with a one-sixth interest in the business. Partnership capital before Carter is admitted ($40,000 + $100,000 + $160,000) $300,000 Carter’s investment in the partnership 60,000 Partnership capital after Carter is admitted $360,000 Carter’s capital in the partnership ($360,000 x 1/6) $ 60,000
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P13-3 ADMITTING A NEW PARTNER  (Obj. 4) (continued) Req. 3 General Journal DATE ACCOUNT TITLES AND EXPLANATIONS POST. REF. DEBIT CREDIT Mar. 31 Cash at Bank 80,000 Nelson, Capital ($15,000 x .15) 2,250 Bright, Capital ($15,000 x .30) 4,500 Clapton, Capital ($15,000 x .55) 8,250 Carter, Capital 95,000 To admit Carter as a partner with a one-quarter interest in the business. Partnership capital before Carter is admitted ($40,000 + $100,000 + $160,000) $300,000 Carter’s investment in the partnership 80,000 Partnership capital after Carter is admitted $380,000 Carter’s capital in the partnership ($380,000 x 1/4) $ 95,000
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P13-5 WITHDRAWAL OF A PARTNER  (Obj. 4, 5) (20-25 min.) Req. 1, 2, 3, and 4 General Journal DATE ACCOUNT TITLES AND EXPLANATIONS POST. REF. DEBIT CREDIT 1. Dec. 31 McNut, Capital 83,000 Napper, Capital 41,500 Lucks, Capital 41,500 To record transfer of McNut’s equity to Napper and Lucks. 2. Dec. 31 McNut, Capital 83,000 Cash at Bank 20,000 Loan Payable to McNut 63,000 To record withdrawal of McNut from the business. 3. Dec. 31 McNut, Capital 83,000 Cash at Bank 10,000 Loan Payable to McNut 70,000 Black, Capital ($3,000 x .28/.62) 1,355 Tate, Capital ($3000 x .34/.62) 1,645 To record withdrawal of McNut from the business.
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(Obj. 4, 5) (continued) Req. 1, 2, 3, and 4 (continued) General Journal DATE ACCOUNT TITLES AND EXPLANATIONS POST. REF. DEBIT CREDIT 4. Dec. 31 Black, Capital ($60,000 x .28) 16,800 McNut, Capital ($60,000 x .38) 22,800 Tate, Capital ($60,000 x .34) 20,400 Accumulated Depreciation 70,000 Building ($310,000 - $180,000) 130,000 To revalue the building and allocate loss to the partners. Dec.
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7111AFE_Solution_Topic11_new - 7111AFE:Topic11 Tutorial...

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