perform the accounting required for the formation, operations,


Question Description:

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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 SPLIT Partnership.xlsx 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 a) T $25,000 $10,000 $15,000 Account Cash AR Inventory Land Furniture Computer Building AP Loan -L S,Capital P,Capital L,Capital $60,000 $30,000 $5,000 $85,000 $0 $0 $55,000 $0 $5,000 $45,000 $15,000 $0 $50,000 $90,000 $0 $0 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 $50,000 $0 $0 $ $ $ $ $ $ $ DR 110,000 25,000 45,000 60,000 30,000 5,000 50,000 CR $ $ $ $ $ $ $ I,Capital T,Capital 15,000 5,000 85,000 50,000 30,000 90,000 50,000 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). Account Depreciation Expense Accumulated Depreciation of Furniture Accumulated Depreciation of Computer Accumulated Depreciation of Building c) DR $6,973.00 CR $4,290.00 $1,666.50 $1,016.50 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 also given the effects of transactions in a) and b). Income Statement for SPLIT for the Year Ended December 31, 2014 Operational Revenue Less: Depreciation Expense Less: Other Operational Expenses Net Income *** Use amount from adjusting entry and calculate net income $20,000 -$6,973.00 -$10,000 $3,027 Balance Sheet for SPLIT as of March 1, 2014 Assets Cash AR Inventory Land Furniture Less: Accumulated Depreciation Computer Less: Accumulated Depreciation Building Total Assets Liabilities AP Loan-L Equity Capital-S Capital-P Capital-L Capital-I Capital-T Total Equity and Liabilities $110,000 $25,000 $45,000 $60,000 $30,000 $0 $5,000 $0 $50,000 $325,000 $15,000 $5,000 $85,000 $50,000 $30,000 $90,000 $50,000 $325,000 Balance Sheet for SPLIT as of December 31, 2014 Assets Cash $120,000 AR $25,000 Inventory $45,000 Land $60,000 Furniture $30,000 Less: Accumulated Depreciation -$4,290 Computer $5,000 Less: Accumulated Depreciation -$1,667 Building $50,000 Less: Accumulated Depreciation -$1,017 Total Assets $328,027 Liabilities AP $15,000 Loan-L $5,000 Equity Capital-S $85,605.40 Capital-P $50,605.40 Capital-L $30,605.40 Capital-I $90,605.40 Capital-T $50,605.40 Total Equity and Liabilities $328,027 Statement of Liquidation for SPLIT Assets Cash Noncash A Accounts Payable Partners Capital Liabilities Notes Payable Loan S P L Realization and allocation Subtotals Distributions Outside Creditors Partner Loans Partners Capital Post Liquidation Balances ** Fixed assets each sold for 20% above ending book value, Inventory sold for 10% below ending book value and all other fair values were equal to book value. I T Read more

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