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Active Sports LP is organized as a limited partnership consisting of two partners

Active Sports LP is organized as a limited partnership consisting of two partners: Basketball Products LP and Hockey Products LP. Each of the partners sell sporting equipment for their respective sports. Compute the partner return on equity for each limited partnership and for the total limited partnership for the year ended September 30, 2013, using the following data:

 

 

Basketball Products LP

Hockey Products LP

Active Sports LP

Capital balance at 10/1/12

$870,000

$580,000

$1,450,000

Net income

65,000

35,000

100,000

Cash distribution

(40,000)

(25,000)

(65,000)

Capital balance at 9/30/13

$895,000

$590,000

$1,485,000

 

 

92. Kathleen Reilly and Ann Wolf decide to form a partnership on August 1. Reilly invested the following assets and liabilities in the new partnership:

 

 

Cost/Book Value

Market Value

Land

$75,000

$100,000

Building

$250,000

$300,000

Note Payable

$198,000

$198,000


The note payable is associated with the building and the partnership will assume the responsibility for the loan. Wolf invested $60,000 in cash and $105,000 in new equipment in the new partnership. Prepare the journal entries to record the two partner’s original investments in the new partnership.

 

 

 

93. Sierra and Jenson formed a partnership. Sierra contributed $25,000 cash and accounts receivable worth $11,000. Jenson's investment included cash, $5,000; inventory, $18,000; and supplies, $1,000. Prepare the journal entries to record each partner's investment in the new partnership.

 

 

 

94. Arthur, Barnett and Cummings form a partnership. Arthur contributes $250,000 cash and Barnett contributes $230,000 in cash. Cummings contributes equipment worth $255,000. Prepare the single journal entry to record the formation of this partnership.

Jan 28 2020 View more View Less

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