Ask Question
28 January, 11:32

Mutt and Jeff formed a partnership on April 1 and contributed the following assets:Mutt JeffCash $ 150,000 $ 50,000 Land 310,000 The land was subject to a $30,000 mortgage, which the partnership assumed. Under the partnership agreement, Mutt and Jeff share profit and loss in the ratio of one-third and two-thirds, respectively. Jeff's capital account at April 1 should beA) $360,000. B) $330,000. C) $300,000. D) $340,000.

+1
Answers (1)
  1. 28 January, 11:55
    0
    B) $330,000

    Explanation:

    Jeff contribute

    cash 50,000

    land 310,000

    with a mortgage of 30,000

    Total contribution

    assets 360,000

    liabilities (30,000)

    total 330,000

    The entry to record the land will be:

    Land 310,000

    Mortgage payable 30,000

    Jeff Capital Account 280,000

    The land is recorded, the parthnership assumes the mortage and the remainder goes into Jeff Capital Account.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Mutt and Jeff formed a partnership on April 1 and contributed the following assets:Mutt JeffCash $ 150,000 $ 50,000 Land 310,000 The land ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers