# Problem 1: Clinton and Schultz are equal partners in DEMO partnership and they have the following… 1 answer below »Problem 1: Clinton and Schultz are equal partners in DEMO partnership and they have the following… 1 answer below »

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 Schultz capital 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 partneship 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?