Peter Nguyen and Loren Washington Are Partners Who Share Profits

question 34

Essay

Peter Nguyen and Loren Washington are partners who share profits and losses in the ratio of 60:40, respectively. On December 31, 2013, they decide that Washington will sell one-half of her interest to Grace Dolores. At that time, the balances of the capital accounts are $75,000 for Nguyen and $45,000 for Washington. The partners agree that before the new partner is admitted, certain assets should be revalued. These assets include merchandise inventory carried at $42,000 revalued at $48,000, and a building with a book value of $100,000 revalued at $120,000. On page 10 of a general journal, record the revaluation entries. Omit descriptions. Then, determine the capital balances of the two existing partners after the revaluation is made.

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Definitions:

Late Adulthood

The stage of life typically considered to begin around the age of 65, characterized by declines in physical and cognitive abilities but also a potential for continued social engagement and emotional growth.

Black Women

Individuals of African descent identifying as female, often discussed in contexts relating to cultural, social, and political experiences.

White Men

Refers to adult human males identified as having Caucasian or European ancestry.

Married Couples

Two individuals who have entered into a legally recognized partnership or marriage, forming a familial unit and often sharing legal, social, and financial responsibilities.