1 Journalizing Partners Original Investment Austin Fisher co

1. Journalizing Partner\'s Original Investment

Austin Fisher contributed land, inventory, and $19,000 cash to a partnership. The land had a book value of $72,000 and a market value of $136,000. The inventory had a book value of $73,100 and a market value of $68,000. The partnership also assumed a $52,000 note payable owed by Fisher that was used originally to purchase the land.

Required:

Provide the journal entry for Fisher\'s contribution to the partnership. If an amount box does not require an entry, leave it blank.

2. Dividing Partnership Net Income

Required:

Steve Jack and Chelsy Dane formed a partnership, dividing income as follows:

Annual salary allowance to Jack of $126,000.

Interest of 7% on each partner\'s capital balance on January 1.

Any remaining net income divided to Jack and Dane, 1:2.

Jack and Dane had $50,000 and $112,600, respectively, in their January 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 decimal places. 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 & Sayler partnership for ownership equity of $58,000. Prior to the investment, equipment was revalued to a market value of $386,000 from a book value of $299,000. Kevin Camden and Chloe Sayler share net income in a 1:2 ratio.

Required:

a. Provide the journal entry for the revaluation of equipment.

For a compound transaction, if an amount box does not require an entry, 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 to fair 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 had capital accounts of $31,000 and $45,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $91,000. The partnership had $3,000 of liabilities. Fowler and Dunn share income and losses equally.

Determine the amount received by Fowler as a final distribution from liquidation of the partnership.
$

6. Liquidating Partnerships—Deficiency

Prior to liquidating their partnership, Short and Bain had capital accounts of $10,000 and $37,000, respectively. The partnership assets were sold for $17,000. The partnership had no liabilities. Short and Bain share income and losses equally.

Required:

a. Determine the amount of Short\'s deficiency.
$

b. Determine the amount distributed to Bain, assuming Short is unable to satisfy the deficiency.
$

Solution

1. Austin Fisher

Note: The assets are recorded by the partnership at their market values.

2. Steve Jack and Chelsy Dane

Please post independent questions separately per Chegg guidelines. Thank you.