Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cheng and morales, zwo recent graduates of upper s

Cheng and Morales, zwo recent graduates of Upper State University, formed a computer consulting firm....

80.2K

Verified Solution

Question

Accounting

image
image
Cheng and Morales, zwo recent graduates of Upper State University, formed a computer consulting firm. Chengercontributed an extensive, up-to-date computer installation. valued at $60000. This equipment had been financed by a bank loan; the paranership assumed the current balance of 525,000 . Cheng also invested $5,000 cash. Morales had receritly inherited a small office bulding, valued at 5150,000 and encumbered by a mortgage debt of 535,000 . Morales transferred both the buliding and the debt to the partnership. Cheng's extensive computer skills coupled with Morales' sales and custorner service skilis suggest a profitable future for the firm. They agreed to share frofits in the ravio of 40 percent for Cheng and 60 percent for Morales, in part because of Morales larger investment. fequived Compute the balance in cach partner's capital account and record the partnership formation entry if the: NOTE: If the additional debit journal entry is not needed, select "No entry" as your answer and leave the Debiticredit nurnerical answers blank (zero). a. Partners do not specify any capital relationship

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

James was eating a bag of candies that came in eight different colors. He noticed that...

Medical Sciences
1.2K views

Think of five everyday movements (example: snatching a foot) For each, indicate the movement, the bones...

Mechanical Engineering
1.2K views

Hydrogen, acting as a van der Waals gas (EOS shown below), is compressed in an isothermal...

Physics
1.2K views

A long slender rod of mass 2kg and length 4m is placed on a smooth...

Basic Math
1.2K views

Evaluate the integral dz 2 z i z 3 where is the circle of radius...

Accounting
1.2K views

Problem 7-20 (Algo) Variable and Absorption Costing...

Accounting
1.2K views

In a family corporation, how can a recapitalization be used to transfer voting control tax-free...

Accounting
1.2K views

A set of office furniture can be purchased and installed for $10,000. It is in...

Accounting
1.2K views

Vernon Manufacturing Company began operations on January 1. During the year, it started and completed...

Accounting
1.2K views

Dave Brown's cumulative earnings are $90,000, and his gross pay for the week is $6,400....

Accounting
1.2K views

Part Two Instructions Using a spreadsheet and based on the information provided in the next...

Accounting
1.2K views

Describe the role of International Standards on Auditing. International Standards on Auditing (ISAs) are issued...