PLEASE SOLVE USING EXCEL FILE AND SHOW ALL WORK:
Problem 1:
Clinton and Schultz are equal partners in DEMO partnership and they have the following balance sheet:
Assets $500,000
Liabilities $300,000
Clinton Capital 150,000 150,000
Schultz capital 50,000 50000
They decide to bring in a new partner Sanders who pays $500,000 to be an equal partner
A) make the journal entry the partnership makes if they use the bonus method
B) make the journal entry the partnership makes if they use the goodwill method
Instead of giving the $500,000 to the partnership, Sanders gave $250,000 to each Clinton and Schultz
C) make the journal entry the partnership makes if they use the bonus method
D) make the journal entry the partnership makes if they use the goodwill method
Problem 2:
THE PARTNERSHIP OF LIONS, TIGERS AND BEARS HAS BEEN EXISTED SINCE 1945, BUT NOW THEY
HAVE DECIDED TO DISSOLVE THE PARTNERSHIP.
PARTNERS SHARE PROFITS AND LOSSES EQUALLY
THEIR JANUARY 1, 2016 BALANCE SHEET IS PRESENTED BELOW:
CASH 50000
ACCOUNTS RECEIVABLE 100000
LAND 200000
EQUIPMENT NET 200000
PATENT 100000
TOTAL ASSETS 650000
ACCOUNTS PAYABLE 300,000
LIONS CAPITAL 200000
TIGERS' CAPITAL 120,000
BEAR'S CAPITAL 30000
A) ON JANUARY 1 WHAT IF ANY SAFE PAYMENTS CAN EACH OF THE PARTNERS TAKE?
B) ON JANUARY 30TH THEY SOLD THE LAND FOR $120,000
IF NO PARTNERS TOOK ANY SAFE PAYMENTS ON JANUARY 1ST WHAT SAFE PAYMENTS CAN EACH TAKE NOW?
C) ON FEBRUARY 28TH THE PARTNERSHIP SOLD THE RECEIVABLES FOR $90,000 IF SHE COULD, TIGERS WOULD HAVE TAKEN A SAFE PAYMENT AT THE END OF JANUARY
WHAT SAFE PAYMENTS CAN EACH PARTNER NOW TAKE?
D) ON MARCH 31ST THE PARTNERSHIP SOLD THE PATENT FOR $80,000
IF SHE COULD TIGERS WOULD HAVE TAKEN ANY A SAFE PAYMENT AT THE END OF FEBRUARY ON MARCH 31 WHAT CAN EACH PARTNER TAKE AS A SAFE PAYMENT?
E) ON APRIL 30TH THE PARTNERSHIP SELLS THE EQUIPMENT FOR $10,000 AND PAYS OFF THE ACCOUNTS PAYABLE
IF ALL PARTNERS ARE INSOLVENT, HOW MUCH DOES EACH PARTNER GET AT THE END OF THE PARTNERSHIP?
F) USING THE INFORMATION FROM E): IF ANY ALL PARTNERS ARE SOLVENT AND CAN COVER ANY DEBTS HOW MUCH
DOES EACH PARTNER RECEIVE OR PAY AT LIQUIDATION?