Dennis Devlin Gary Freemont and Jean London started a

partnership #8307
Dennis Devlin Gary Freemont and Jean London started a partnership

Dennis Devlin, Gary Freemont, and Jean London started a partnership to operate a
management consulting business. The partnership (DFL Partners) had the following
transactions:

2015

Jan. 2 Devlin, Freemont, and London formed the partnership by signing an agreement that
stated that all profits would be shared in a 3:2:5 ratio and by making the following investments:

Dec. 31 The partnership reported net income of $252,000 for the year.

2016

Jun. 7 Devlin and London agreed that Freemont could sell his share of the partnership to André
Hughes for $390,000. The new partners agreed to keep the same profit-sharing arrangement.

Dec. 31 The partnership reported a net loss of $300,000 for the year.

2017

Jan. 3 The partners agreed to liquidate the partnership. On this date the balance sheet showed
the following items, all at their normal balances:

Cash.............................................................................................. $ 78,000

Accounts receivable................................................................... 1,476,000

Allowance for uncollectible accounts...................................... 72,000

Office furniture........................................................................... 360,000

1/2
 Computer equipment ................................................................. 600,000

Accumulated amortization (total) ............................................ 180,000

Accounts payable ........................................................................ 1,440,000

The assets were sold for the following amounts:

Accounts receivable .................................................................... $ 720,000

Office furniture ............................................................................ 390,000

Computer equipment ................................................................. 360,000

Devlin and Hughes both have personal assets, but London does not.

Required

Journalize all the transactions for the partnership.

Dennis Devlin Gary Freemont and Jean London started a partnership

ANSWER
http://paperinstant.com/downloads/dennis-devlin-gary-freemont-and-jean-london-started-a-
partnership/

2/2
Powered by TCPDF (www.tcpdf.org)