Meman Assume for each of the following independent cases that the annual accounting period ends on December 31. Revenuesfor the year were $145,000. Expenses for the year were $166,000.Case A: Assume that Rise Up Company is a sole proprietorship owned by Mrs. Rise. Prior to the closing entries, the capitalaccount reflects a balance of $60,000 and the drawing account shows a balance of $13,000.Case B: Assume that RiseUp Company is a partnership owned by Mrs. Rise and Mr. Up. Prior to the closing entries, theowners' equity accounts reflect the following balances: Rise, Capital, $53,000; Up, Capital, $53,000; Rise, Drawings,$15,000; and Up, Drawings, $17,000. Profits and losses are divided equally.Case C: Assume that Rise Up Company is a corporation.2. Show how the statement of owner's equity would appear at December 31 for Case A and Case B.Case A: Sole ProprietorshipCase B: PartnershipComplete this question by entering your answers in the tabs below.Case A SoleProprietorshipCase BPartnershipShow how the statement of owner's equity would appear at December 31 for Case A: Sole Proprietorship.Statement of Owner's EquityTotal<Case A Sole ProprietorshipCase B Partnership >

Part 2: Approach to solving the questionIn both cases, we start with the beginning balances in the…

Answered: Assume for each of the following…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 45P

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Carla, Inc. purchased 1,810 shares of Oneida Corporation common stock for $84,600. During the year. Oneida paid a cash dividend of $1.10 per share. At year-end, Oneida stock was selling for $43.90 per share. Prepare Carla's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) (c) Account Titles and Explanation Debit Credit
As of the beginning of the year, Devers, Inc. acquired common stock of Verdugo Limited at book value. During the current year, Verdugo earned $12.5 million and declared dividends of $4 million. Indicate the amount shown for Investment in Verdugo on Devers Inc.’s balance sheet on December 31 and the amount of total income Devers would report on the income statement for the year related to its investment under the assumption that Devers did the following: A. Paid $2 million for a 10-percent interest in Verdugo and classifies the investment as a passive investment. The fair value of the investment at December 31st was now $2.3 million. B. Paid $7 million for a 35-percent interest in Verdugo and uses the equity method. The fair value of the investment at December 31st was now $7.3 million. Please dont provide handwritten or image based answers thank you
Dabin Company purchased a P1,000,000 ordinary life insurance policy for its president. The beneficiary of the life insurance policy is Dabin Company. The policy year and the entity's accounting year coincide. The entity provided the following data for the current year: Cash surrender value, January 1 43,500 Cash surrender value, December 31 Annual advance premium paid January 1 Dividend received July 1 54,000 20,000 3,000 What amount should be reported as life insurance expense for the current year? O 17,000 20,000 6,500 9,500
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edderman Corp., an accrual-basis calendar year repair-service corporation, began business on Monday, January 3, 20X1. Fedderman’s valid S corporation election took effect retroactively on January 3, 20X1. For questions 1 through 4, determine the amount, if any, using the fact pattern for each item. Assume the following facts: Fedderman’s 20X1 books recorded the following items: Gross receipts $9,600 Interest income on investments 250 Charitable contributions 1,250 Supplies 1,200 What amount of net business income should Fedderman report on its 20X1 Form 1120S, U.S. Income Tax Return for an S Corporation, Schedule K? My wrong Answer: 7,400 formula/clue given: {R} - {S}
Pasta House Inc. was organized in January 2019. During the year, the transactions belowoccurred:a. On January 14, Pasta House sold Martin Halter, the firm’s founder and sole owner, 10,000shares of its common stock for $8 per share.b. On the same day, Bank One loaned Pasta House $45,000 on a 10-year note payable.c. On February 22, Pasta House purchased a building and the land on which it stands fromFrank Jakubek for $34,000 cash and a 5-year, $56,000 note payable. The land and buildinghad appraised values of $30,000 and $60,000, respectively.d. On March 1, Pasta House signed an $15,000 contract with Cosby Renovations to remodelthe inside of the building. Pasta House paid $4,000 down and agreed to pay the remainderwhen Cosby completed its work.e. On May 3, Cosby completed its work and submitted a bill to Pasta House for the remaining$11,000.f. On May 20, Pasta House paid $11,000 to Cosby Renovations.g. On June 4, Pasta House purchased restaurant supplies from Glidden Supply for $650…
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On January 1, 2025, Vaughn Corporation purchased 20% of the common shares of Bramble Company for $196,000. During the year, Bramble earned net income of $77,000 and paid dividends of $19,250. Prepare the entries for Vaughn to record the purchase and any additional entries related to this investment in Bramble Company in 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
On January 1, 2025, Ayayai Corporation purchased 40% of the common shares of Pina Company for $178,000. During the year, Pina earned net income of $86,000 and paid dividends of $21,500. Prepare the entries for Ayayai to record the purchase and any additional entries related to this investment in Pina Company in 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation (To record purchase of stock.) (To record receipt of dividends.) (To record revenue.) Debit Credit ION
An investor company purchased 42,000 of the 100,000 outstanding shares of the investee company's common stock for $382,000 on January 1, 2021. During 2021, the investee company declared dividends of $47,000 and reported earnings for the year of $194,000. If the investor company uses the equity method of accounting for its investment in the investee company, its Equity Investment in the investee company account at December 31, 2021 should be $____________. (Do not round your answer for any part of the computation.)
Fedderman Corp., an accrual-basis calendar year repair-service corporation, began business on Monday, January 3, 20X1. Fedderman’s valid S corporation election took effect retroactively on January 3, 20X1. Assume the following facts: Fedderman’s 20X1 books recorded the following items: Gross receipts $8,800 Interest income on investments 250 Charitable contributions 1,300 Supplies 2,600 What amount of net business income should Fedderman report on its 20X1 Form 1120S, U.S. Income Tax Return for an S Corporation, Schedule K? FORMULA should be: {R} - {S}
The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. a. Compute Kitsch’s nonseparately stated income or loss for the tax year. b. What would be the share of this year’s nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders? c. What is James Billings’s share of tax-exempt interest income, if any? Is the income taxable to him this year?

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