Task 2.1: On September 1, P. Duke, L. King and P. Prince are partners with an income ratio of 5:3:2 and $70 000, $45 000

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Task 2 1 On September 1 P Duke L King And P Prince Are Partners With An Income Ratio Of 5 3 2 And 70 000 45 000 1 (333.91 KiB) Viewed 42 times

Task 2.1: On September 1, P. Duke, L. King and P. Prince are partners with an income ratio of 5:3:2 and $70 000, $45 000 and $28 000 in their capital accounts, respectively. They think that K. Knight would be a good fit to join their partnership. Record the entry of Knight under the following assumptions: a) Knight purchases 30% of King's equity for $20 000. b) Knight enters the partnership by investing $15 000 cash in the business. Task 2.2: Haney, Koolen and Wallen are partners with capital balances of $140 000, $100 000 and $90 000 respectively. They share all profits and losses equally. On October 1, the partners have decided to close down the business. They manage to liquidate all of the assets at a gain of $60 000. Show the journal entry to allocate the gain to the partners and the entry to dissolve the business assuming a cash balance of $390,000 after the disposal of the assets. Task 2.3: Chura, Palmer and Priamo are partners with in a technology consulting business. They have capital balances of $35 000, $25 000 and $12 000 respectively. They have an income ratio of 2:3:5. The partnership has the following assets and liabilities: Cash $20 000; Accounts Receivable $7 000; Computer Equipment $140 000; Accumulated Amortization - Computer Equipment $80 000; Note Payable $15 000. On December 1, the partners decide to liquidate the assets and close the partnership. They manage to collect all of the Accounts Receivable but could get only $10 000 for the computer equipment. a) Show the entries to record the sale of the assets, collection of accounts receivable, the payment of the liabilities. b) Show the entry to allocate the loss to the partners.