Bobbi and Stuart are partners. The partnership capital of Bobbi is $40,000 and that of Stuart is $70,000. Bobbi sells his interest in the partnership to John for $50,000. The journal entry for the admission of John as a new partner would include a credit to Question 38 options: John's capital account for $40,000 Stuart's capital account for $10,000 John's capital account for $50,000 John's capital account for $40,000 and a credit to Stuart's capital account for $10,000

Bobbi and Stuart are partners. The partnership capital of Bobbi is $40,000 and that of Stuart is $70,000. Bobbi sells his interest in the partnership to John for $50,000. The journal entry for the admission of John as a new partner would include a credit to Question 38 options: John's capital account for $40,000 Stuart's capital account for $10,000 John's capital account for $50,000 John's capital account for $40,000 and a credit to Stuart's capital account for $10,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

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Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.
The partnership of Arun, Margot, and Tammy has been doing well. Arun wants to retire and move to another state for a once-in-a-lifetime opportunity. The partners capital balances prior to Aruns retirement are $60,000 each. Prepare a schedule showing how Aruns withdrawal should be divided assuming his buyout is: A. $70,000 B. $45,000 C. $60,000. In addition, show the resulting entries to the capital accounts of each of the three.
Chani contributes equipment to a partnership that she purchased 2 years ago for $10,000. The current book value is $7,500 and the market value is $9,000. At what value should the partnership record the equipment? A. $10,000 B. $9,000 C. $7,500 D. none of the above
The partnership of Michelle, Amal, and Maureen has done well. The three partners have shared profits and losses in a 1:3 ratio, with capital balances of $60,000 each. Maureen wants to retire and withdraw. Prepare a schedule showing how the cost should be divided if Amal and Michelle decide to pay Maureen $70,000 for retirement of her capital account and the new agreement will share profits and losses 50:50.
Bobbi and Stuart are partners. The partnership capital of Bobbi is $40,800 and that of Stuart is $77,700. Bobbi sells his interest in the partnership to John for $58,100. The journal entry for the admission of John as a new partner would include a credit to a.John's capital account for $40,800 and a credit to Stuart's capital account for $77,700 b.Stuart's capital account for $59,250 c.John's capital account for $40,800 d.John's capital account for $58,100
Bobbi and Stuart are partners. The partnership capital of Bobbi is $43,200 and that of Stuart is $78,800. Bobbi sells his interest in the partnership to John for $60,000. The journal entry for the admission of John as a new partner would include a credit to
Trumming and Nancy are successful partners. They share profits and losses equally. Their current capital account balances are $20 and $15 respectively. They decide to admit Tyler to the partnership. Tyler invests $25 for a 25 per cent share of the partnership. The journal entry to admit Tyler will include: Debit Tyler, capital $15 Credit Trumming, capital $10 Debit Cash $15 Credit Trumming, capital $5
Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $65,200 and $29,200, respectively. With the consent of Bailey, Sandra buys one-half of Abby's interest for $45,000. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership? a. $65,200 b. $29,200 c. $32,600 d. $45,000
Todd Stratton has a capital balance of $24,000; Sharon Silver's balance is $19,000. Gavin Howard pays $100,000 to purchase Silver's interest in the Stratton & Silver partnership. Silver gets the full $100,000. Requirements 1. Journalize the partnership's transaction to admit Howard to the partnership. 2. Must Stratton accept Howard as a full partner? What rights does Howard have after purchasing Silver's interest in the partnership? Requirement 1. Journalize the partnership's transaction to admit Howard to the partnership. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
Higgins is admitted to the partnership of Rengel & Novak. Prior to her admission, the partnership books show Rengel's capital balance at $160,000 and Novak's at $80,000. Assume Rengel and Novak share profits and losses equally. Read the requirements. .... . Requirement 1. Compute each partner's equity on the books of the new partnership under the following plans: a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. Begin by computing the partner's equity base for plan a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. (Enter a share for each partner. Complete all answer boxes. For accounts with a $0 balance, make sure to enter "0" in the appropriate cell. Enter negative amounts with a parentheses or minus sign.) Plan A Rengel Novak Higgins Plan A: Partnership capital before admission of Higgins Requirements Plan A: Effect on capital balance as a result of admission of Higgins Plan A: Partnership capital after admission of Higgins 1. Compute…
Sal Solan has a capital balance of $26,000; Sharon Silver's balance is $25,000. Grant Hill pays $110,000 to purchase Silver's interest in the Solan & Silver partnership. Silver gets the full $110,000. Requirements 1. Journalize the partnership's transaction to admit Hill to the partnership. 2. Must Solan accept Hill as a full partner? What rights does Hill have after purchasing Silver's interest in the partnership? Requirement 1. Journalize the partnership's transaction to admit Hill to the partnership. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
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	John's capital account for $40,000
	Stuart's capital account for $10,000
	John's capital account for $50,000
	John's capital account for $40,000 and a credit to Stuart's capital account for $10,000