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    Khalid
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    Holly Renfro contributed a patent appraised at $92,000, accounts receivable of $45,000 less $3,000 allowance for doubtful accounts, and $20,000 cash to a partnership. The partnership also assumed a $14,000 account payable owed by Renfro, resulting in a net contribution of $140,000. Lia Chen and Martin Monroe formed a partnership, with Chen receiving $35,000 annual salary, each partner receiving 4% interest on their January 1 capital balance of $90,000 and $140,000 respectively, and the remaining $70,000 net income split 2:1 between Chen and Monroe.

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    Accounting assignment

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    Holly Renfro contributed a patent appraised at $92,000, accounts receivable of $45,000 less $3,000 allowance for doubtful accounts, and $20,000 cash to a partnership. The partnership also assumed a $14,000 account payable owed by Renfro, resulting in a net contribution of $140,000. Lia Chen and Martin Monroe formed a partnership, with Chen receiving $35,000 annual salary, each partner receiving 4% interest on their January 1 capital balance of $90,000 and $140,000 respectively, and the remaining $70,000 net income split 2:1 between Chen and Monroe.

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    28 views1 page

    Accounting Assignment

    Uploaded by

    Khalid
    Holly Renfro contributed a patent appraised at $92,000, accounts receivable of $45,000 less $3,000 allowance for doubtful accounts, and $20,000 cash to a partnership. The partnership also assumed a $14,000 account payable owed by Renfro, resulting in a net contribution of $140,000. Lia Chen and Martin Monroe formed a partnership, with Chen receiving $35,000 annual salary, each partner receiving 4% interest on their January 1 capital balance of $90,000 and $140,000 respectively, and the remaining $70,000 net income split 2:1 between Chen and Monroe.

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    © All Rights Reserved
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    of 1

    Financial Accounting

    Assignment

    1. Holly Renfro contributed a patent, accounts receivable, and $20,000 cash to a


    partnership. The patent had a book value of $8,000. However, the technology covered by the
    patent appeared to have significant market potential. Thus,the patent was appraised at $92,000.
    The accounts receivable control account was $45,000, with an allowance for doubtful accounts
    of $3,000. The partnership also assumed a $14,000 account payable owed to a Renfro supplier.
    Provide the journal entry for Renfro’s contribution to the partnership.

    2. Lia Chen and Martin Monroe formed a partnership, dividing income as follows:
    i. Annual salary allowance to Chen of $35,000.
    ii. Interest of 4% on each partner’s capital balance on January 1.
    iii. Any remaining net income divided to Chen and Monroe, 2:1.
    Chen and Monroe had $90,000 and $140,000, respectively, in their January 1 capital balances.
    Net income for the year was $70,000. How much net income should be distributed to Chen and
    Monroe?

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