70.2K

Verified Solution

Link Copied!

i uploaded another picture of this question below

11:30 al 4G Q1: On January 3rd, Amar and Natasha agree to start a partnership. Amar contributes $12,000 cash while Natasha contributes a $10,000 vehicle. Make the necessary journal entries. In its first year (Dec 31 year-end), the business generates income of $29,000. The partners have agreed that Amar will have salary allowance of $12,000 while Natasha will earn $15,000. The partners will also receive 5% interest allowance on their latest capital balances. Any remaining profit/loss will be split based on capital balances. Make the necessary journal entries (show your calculations). On January 1, Amar withdraws $7,000 cash and Natasha withdraws $9,000. Make the necessary journal entries. Calculate the current capital balances for Amar and Natasha. On Jan 2, Gus is admitted as a partner. He pays $20,000 cash in exchange for $17,000 equity in the partnership. Make the necessary journal entry and calculate the current capital balances. In its second year, the business generates a $53,000 profit (assume same agreement has been extended to Gus with a $10,000 salary allowance). Make the necessary journal entries. Assuming no withdrawals, calculate the current capital balances. On January 4th, Amar sells half his shares to Gus for $20,000. Make the journal entry. Compute the current capital balances. On January 31st, the partnership pays Amar $16,000 for his remaining shares. Make the journal entry

Answer & Explanation Solved by verified expert

See Answer