1. Journalizing Partner’s Original Investment Austin Fisher contributed land, inventory, and $19,000 cash to apartnership. The land had a book value of $72,000 and a marketvalue of $136,000. The inventory had a book value of $73,100 and amarket value of $68,000. The partnership also assumed a $52,000note payable owed by Fisher that was used originally to purchasethe land. Required: Provide the journal entry for Fisher’s contribution to thepartnership. If an amount box does not require an entry, leave itblank. 2. Dividing Partnership Net Income Required: Steve Jack and Chelsy Dane formed a partnership, dividing incomeas follows: Annual salary allowance to Jack of $126,000. Interest of 7% on each partner’s capital balance on January1. Any remaining net income divided to Jack and Dane, 1:2. Jack and Dane had $50,000 and $112,600, respectively, in theirJanuary 1 capital balances. Net income for the year was $225,000.How much is distributed to Jack and Dane? Note: Compute partnership share to two decimalplaces. Round final answers to the nearest whole dollar.
Jack: $
Dane: $ 3. Revaluing and Contributing Assets to a Partnership Demarco Lee invested $58,000 in the Camden & Saylerpartnership for ownership equity of $58,000. Prior to theinvestment, equipment was revalued to a market value of $386,000from a book value of $299,000. Kevin Camden and Chloe Sayler sharenet income in a 1:2 ratio. Required: a. Provide the journal entry for therevaluation of equipment. For a compound transaction, if an amount box does not require anentry, leave it blank. b. Provide the journal entry to admit Lee. 4. Partner Bonus Lilly has a capital balance of $68,000 after adjusting assets tofair market value. Van Ness contributes $39,000 to receive a 45%interest in a new partnershipwith Lilly. Determine the amount and recipient of the partner bonus. 5. Liquidating Partnerships Prior to liquidating their partnership, Fowler and Dunn hadcapital accounts of $31,000 and $45,000, respectively. Prior toliquidation, the partnership had no cash assets other than what wasrealized from the sale of assets. These partnership assets weresold for $91,000. The partnership had $3,000 of liabilities. Fowlerand Dunn share income and losses equally. Determine the amount received by Fowler as a final distributionfrom liquidation of the partnership.
$ 6. Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Short and Bain hadcapital accounts of $10,000 and $37,000, respectively. Thepartnership assets were sold for $17,000. The partnership had noliabilities. Short and Bain share income and losses equally. Required: a. Determine the amount of Short’sdeficiency.
$ b. Determine the amount distributed to Bain,assuming Short is unable to satisfy the deficiency.
$ . . .
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