70.2K

Verified Solution

Link Copied!

solve

1. Charlene Tilson and Jade Petricka decide to organize the Petson partnership. Tilson invests $15,000 cash, and Petricka contributes $12,000 cash and two assets from her sole proprietorship (accounts receivable $9,000 less allowance for doubtful accounts $1,000, and land having a book value of $7,000 ). Prepare the entry to record Petricka's investment in the partnership, assuming the net realizable value of the receivables is $7,500 and the land has a fair value of $10,000. 2. Matt \& Daveson Co. reports net income of $51,000. Interest allowances are Matt $8,000 and Daveson $10,000, salary allowances are Matt $30,000 and Daveson $20,000, and the remainder is shared equally. Show the division of net income. 3. After liquidating noncash assets and paying creditors, account balances in Mann Co. are Cash $33,000; Zach, Capital (Cr.) \$13,000; Put, Capital (Cr.) \$10,000; and Nam, Capital (Cr.) \$10,000. The partners share income equally. Journalize the final distribution of cash to the partners 1. Charlene Tilson and Jade Petricka decide to organize the Petson partnership. Tilson invests $15,000 cash, and Petricka contributes $12,000 cash and two assets from her sole proprietorship (accounts receivable $9,000 less allowance for doubtful accounts $1,000, and land having a book value of $7,000 ). Prepare the entry to record Petricka's investment in the partnership, assuming the net realizable value of the receivables is $7,500 and the land has a fair value of $10,000. 2. Matt \& Daveson Co. reports net income of $51,000. Interest allowances are Matt $8,000 and Daveson $10,000, salary allowances are Matt $30,000 and Daveson $20,000, and the remainder is shared equally. Show the division of net income. 3. After liquidating noncash assets and paying creditors, account balances in Mann Co. are Cash $33,000; Zach, Capital (Cr.) \$13,000; Put, Capital (Cr.) \$10,000; and Nam, Capital (Cr.) \$10,000. The partners share income equally. Journalize the final distribution of cash to the partners

Answer & Explanation Solved by verified expert

See Answer