Perform for all partnership formation transactions

Question 1

Using the data in the attached spreadsheet , perform the accounting required for the formation, operations, and liquidation of the SPLIT Partnership. Within the worksheet, you are to:

1. Perform the required journal entries


2. Update the partnership financials after each set of transactions. There are three sets—formation set, operation set, and liquidation set.

Complete all work on the spreadsheet attached to this assignment; it will be your only deliverable.

Part 1: Perform for all partnership formation transactions

Part 2: Perform for all operational and liquidation transactions

Fair Value of Items Contributed to Partnership (FMV=Basis) on March 1, 2014
Assets, Liabilities & Equities	S	P	L	I	T
Cash	$10,000	$25,000	$25,000	$25,000	$25,000
AR	$15,000				$10,000
Inventory			$15,000	$15,000	$15,000
Land	$60,000
Furniture		$30,000
Less: Accumulated Depreciation
Computer			$5,000
Less: Accumulated Depreciation
Building				$50,000
Total Assets	$85,000	$55,000	$45,000	$90,000	$50,000
AP			$15,000
Loan-L		$5,000

a) Use the information to the left to journalize the formation of the partnership. Prepare the beginning partnership balance sheet using the template to the right b)  Assume it is now December 31, 2014. Adjust for depreciation for the furniture (7 year life), computer (3 year life) and building (40 year life). c) In addition to the depreciation expenses there are $10,000 of operations expenses all paid in cash. There was also operational revenue of $20,000 (also paid in cash). Prepare the partnership balance sheet as of December 31, 2014 given the effects of transactions in a) and b). d)  Assume it is now December 31, 2014. Adjust for depreciation for the furniture (7 year life), computer (3 year life) and building (40 year life). Show all of your work in the areas below row 50.

AFTER PAYMENT ENTER PASSWORD : "shiv" TO UNLOCK THE SOLUTION

AFTER PAYMENT ENTER PASSWORD : "shiv" TO UNLOCK THE SOLUTION