Description
Using the data in the Option 2 Spreadsheet (linked at the bottom of the page), perform the accounting required for the formation, operations, and liquidation of the SPLIT Partnership. Within the worksheet, you are to:
- Perform the required journal entries
- 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
Explanation & Answer
Attached.
Fair Value of Items Contributed to Partnership (FMV=Basis) on March 1, 2014
Assets, Liabilities & Equities
Cash
AR
Inventory
Land
Furniture
Less: Accumulated Depreciation
Computer
Less: Accumulated Depreciation
Building
Total Assets
AP
Loan-L
S
$10,000
$15,000
P
$25,000
L
$25,000
I
$25,000
$15,000
$15,000
$85,000
$0
$0
$55,000
$0
$5,000
$45,000
$15,000
$0
$50,000
$90,000
$0
$0
Net Asset/Capital
$85,000
$50,000
$30,000
$90,000
$60,000
$30,000
$5,000
2014
a)
T
$25,000
$10,000
$15,000
$50,000
$0
$0
$50,000
b)
c)
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
Account
Cash
AR
Inventory
Land
Furniture
Less: Accumulated De...
