158.Emerson and Dakota formed a partnership dividing income as follows:
1. Annual salary allowance to Emerson of $58,000
2. Interest of 8% on each partner’s capital balance on January 1
3. Any remaining net income divided equally
Emerson and Dakota had $25,000 and $140,000 respectively in their January 1 capital balances.
Net income forthe year was $220,000.
How much net income should be distributed to Dakota?
159.Gavin invested $45,000 in the Jason and Kelly partnership for ownership equity of $45,000. Prior to the investmentland was revalued to a market value of $320,000 from a book value of $200,000. Jason and Kelly share net incomein a 1:2 ratio.
a.Provide the journal entry for the revaluation of land.
b.Provide the journal entry to admit Gavin.
160.Malcolm has a capital balance of $90,000 after adjusting to fair market value. Celeste contributes $45,000 toreceive a 25% interest in a new partnership with Malcolm.
Determine the amount and recipient of the partner bonus.
161.The capital accounts of Heidi and Moss have balances of $90,000 and $65,000, respectively on January 1, thebeginning of the current fiscal year. On April 10, Heidi invested an additional $8,000. During the year, Heidi andMoss withdrew $40,000 and $32,000, respectively, and net income for the year was $120,000. The articles ofpartnership make no reference to the division of net income.
Required:
(1)Journalize the entries to:
(a)Close the income summary account.
(b)Close the drawing accounts.
(2)Prepare a statement of partners’ equity for the partnership of Heidi and Moss.
162.After the tangible assets have been adjusted to current market prices, the capital accounts of Harper and Kahlilhave balances of $60,000 and $90,000, respectively. Fay is to be admitted to the partnership, contributing $45,000cash, for which she is to receive an ownership equity of $60,000. All partners share equally in income.
Required:
(1)Journalize the entry to record the admission of Fay, who is to receive a bonus of $15,000.
(2)What are the capital balances of each partner after the admission of the new partner?