On March 1, 2015, II and JJ formed a partnership with each contributing the following assets: || JJ Cash 300,000 700,000 Machinery & equipment 250,000 750,000 Building 2,250,000 Furniture & fixtures 100,000 The building is subject to mortgage loan of P800,000, which is not to be assumed by the partnership agreement provides that II and JJ share profits and losses 30% and 70% respectively. On March 1, 2015, the balance in JJ's capital account should be: O A. 3,700,000 O B. 3,140,000 O C. 3,050,000 O D. 2,900,000
Q: Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor…
A:
Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P 3M.…
A: As per the below table, the CV of note on Dec 2010 is P 18,18,182 * Please note that the…
Q: CHECK OUT: 1. At December 31, 2013, XYZ Co. reported the following information on its balance sheet:…
A: 1. Journal entries
Q: During the first month of operations, the following transactions occurred for Blossom Inc.: Apr. 1…
A: Salary is the expense of a business. As per the golden rule of accounting, the expense is debited.…
Q: Evaluate the two alternatives A and B and decide the economic justified alternative using: Present…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Mountain Dental Services is a specialized dental practice whose only service is filling cavities.…
A: High-low method is used in costing to segregate fixed and variable costs. Following formula is used…
Q: Friends Partnership has three partners. The balance of each partner capital is Alia $48.000, Mariam…
A: A partnership is a legally binding agreement between two or more people to run and operate a firm…
Q: Foreign currency transactions Melbourne Ltd purchased goods from France on 3 April 2022 on credit…
A: Introduction: If goods are purchased from other countries and payment is deferred to a later date,…
Q: Concerning the actual dividend paid that can be used as an input to the dividend discount model…
A: Financing section of the cash flow statement includes the outflow and inflow of cash in relation to…
Q: 20. Marta purchased a sweater for $15.67, a pair of socks for $2.13, and a bracelet for $6.78. For…
A: State sales tax is imposed on the total purchase price. Retailers who make sales subject to subject…
Q: What is the answer question (A ) only??
A: Lets understand the basics. Management calculates the cash collection and cash payment for the…
Q: March 2021 1 The owner, Gina, invested the following: filing cabinets and fixtures- 15,000; cash,…
A: The closing entries are the entries passed to close the temporary accounts to the income summary…
Q: Required: a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen’s…
A:
Q: January 1, 2013 2-year-old Cattle 12,000 New Born Cattle 4,000 December 31, 2013 2-year old cattle…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The following data have been provided by Mathews Corporation: Budgeted production 6,900 units…
A: The variable overhead rate variance is the variance that represents the difference between actual…
Q: In almost all cases, making contributions to an RRSP will provide the deferral of income tax. In…
A: Introduction: RRSP (Registered Retirement Savings Plan): A (RRSP) is a retirement funds plan where…
Q: lue of $54,000 is sold for $63,000 cash. Using the indirect method, this transaction should be…
A: The indirect approach is one of two accounting procedures for constructing a cash flow statement. By…
Q: On June 30, 2015, the balance sheet of Western Marketing, a partnership, is summarized as follows:…
A: The book value method is the method of accounting for the investment by the new partner at the time…
Q: Bello are subject to a tax rate of 40%. What is the effect of recognizing the deferred tax in…
A: Deferred tax is the tax amount which either increase or decreases the tax liability of the company…
Q: Discuss what you consider as effective board practices
A: Answer An effective board of directors is critical to the success of any organization. Clear,…
Q: 39. Peter and John, who share profits and losses equally, decided to liquidate their partnership…
A: Producers' finished goods are such total. There's no need for retailers to categorise or segment…
Q: (ehama) nollsoup Shareholders' equity of Yiruna Toys Inc. (YTI), a public company, at December 31,…
A: As per IFRS 9, Financial Instruments, On the issue of a compound instrument, the financial liability…
Q: Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. -…
A: It refers to a modern accounting method which is used to record business transaction in a debit…
Q: Apple Corporation produces a single product. The standard costs for one unit of its product are as…
A: Variable Overhead Spending Variance = (SR - AR) x AH
Q: Tasks 8-9. Application. Prepare the journal entries of the transaction below and post them to the…
A: 3/10, n 30 means that if the payment is made within 10 days of the sale, a 3% discount will be given…
Q: an acquisition. Linda Wade, Smitty’s treasurer and your boss, has been asked to place a value on a…
A: Merger: A merger is the mix of two organizations into one by either shutting the old entities into…
Q: Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of…
A: Manufacturing overheads are the costs incurred on the production of the goods. It includes indirect…
Q: Prepare journal entries to record the following production activities. 1. Transferred completed…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: ! Required Information [The following information applies to the questions displayed below.] This…
A: The penalty percentage for late payment of withholding tax is an additional 3% for underpayment over…
Q: A. Ronel is a broker who earns a commission of 3½% of all securities sales that he makes. For the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 14.On August 20X1, ABC Company bought 50,000 shares of Z Corp at P300,000. Commission and taxes…
A: Realized gain (loss) on sale=Sales proceeds-Transaction costs-Book value of shares on the date of…
Q: community is 6.5%, what was the selling price for the basketball before taxes?
A: The sales tax means the tax that is charged on the selling price of the goods. It is an addition to…
Q: Payable is a batch level activities Static Budget 1000000 $2,90 $100000 Activities Number of…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Bright Ltd reported net income of R34 400 in 2011. The financial year end for Bright Ltd is 31…
A: Weighted average outstanding shares = 8,000×612 + 10,000×312 + 12,000×312…
Q: At 1 January 2020, Falmer Co had 15 million £1 equity shares in issue. On 1 April 2020, Falmer Co…
A: Number Amount 01-Jan-20 15 million 15 million 01-Apr-20 2.5 million 2.5 million 17.5…
Q: The following information is available for Cheyenne Corp.: 2022 2021 Accounts receivable $…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Principles of internal control include all of the following except Multiple Choice Divide…
A: The Answer is Option 2 : Separate Recordkeeping from custody of Assets. Rest of the options are…
Q: Dexter Industries purchased packaging equipment on January 8 for $215,400. The equipment was…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Capital Gains Rates Individuals taxed at: Rate Single Taxable income MFJ Taxable Income Up to…
A: The marginal tax rate is the slab -rate at which the individual's income falls and it is taxed.…
Q: Need to know how to get ending inventory for JAFFE on a corrected income statement for NPV
A: This question is related to the ending inventory before moving into the question first we know about…
Q: When should a segment or division be dropped
A: A segment or division is a small part or process of an entity whose Revenues and Expenses can be…
Q: During the month of May, Bennett Manufacturing Company purchases $43,000 of raw materials. The…
A: Cost of goods manufactured: Cost of goods manufactured means total manufacturing costs; including…
Q: 2. How many regular hours will someone need to work to earn $250 at $12.50/h? 3. Determine two…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: What effect do you think this inflation adjusted rate has on the price of an I-bond in comparison…
A: I-Bonds also known as inflation link saving bonds are the bonds with minimal risk category…
Q: The entry to record the application of Factory Overhead to Jobs in a Job Order Cost system would be:…
A: Journal entries are the basic method of recording transactions. The job cost is used for measuring…
Q: During June 2014, Green Grocer Inc. decided to build a new warehouse and purchased land for…
A: Costs Involved Particulars Amount $ Purchase cost of land 850000 Excavation cost 72000…
Q: Joshua Scott invests $40,000 into his new business. How would this transaction be entered in the…
A: Journal entries are the basic method for recognizing the financial transaction and these journal…
Q: السؤال 10 ?Manama Trading has $ 8,000 of cash sales that are subject to an additional 8% sales tax,…
A: Please see Step 2 for required information.
Q: counts Payable counts Receivable paid Insurance sh awing al assets are . $7,934 p. $3,947 $434 Fees…
A: Total assets are the value of everything a person has after all assets and obligations have been…
Q: Current Year Previous Year Accounts payable $67,712 $52,900 Long-term debt 30,966 39,700 Based on…
A: Formula used: Amount of change = Current year - Previous year Deduction of previous year value from…
Step by step
Solved in 2 steps
- On May 1, 2022, AA and BB formed a partnership with each contributing the following assets: Partner AA: Cash, P300,000 Machinery and equipment, P250,000 Furniture and fixtures, P100,000 Partner BB: Cash, P700,000 Machinery and equipment, P750,000 Building, P2,250,000 The building is subject to a mortgage loan of P800,000, which will not be assumed by the partnership. What is the capital balance of partner BB upon formation?On March 1, 20x4, CC and FF formed a partnership with each contributing the following assets: CC FF Cash... P 30,000 P70,000 Machinery. 25,000 75,000 Building.. 225,000 ******* Furniture and fixtures... 10,000 The building is subject to a mortgage loan of P90,000, which is to be assumed by the partnership agreement provides that CC and FF share profits and losses 30 percent and 70 percent, respectively. On March 1, 20x4, the capital account of FF would showa balance of:AA and BB entered into partnership on March 1, 2022 by investing the following assets: AA BB Cash P 30,000 Inventory P 90,000 Equipment 160,000 Furniture 200,000 The agreement between AA and BB provides that profits and losses are to be divided 40% and 60%, respectively, and that the partnership is to assume liability on the equipment of P60,000. The partners further agree that BB is to receive a capital credit equal to his profit and loss ratio. How much is the cash to be invested by BB?
- In the January 1, 2020 Kalaw and Borromeo formed partnership with each contributing the following: Kalaw Borromeo Cash 50,000 70,000 Equipments 50,000 75,000 Building 225,000 Furniture 10,000 Accounts payable 20,000 Loans Payable 100,000 All liabilities are to be assumed by the partnership. The partners agreed the equipments should be provided a 20% depreciation and the building has a market value of 200,000. The value of the furniture should be decreased by P2,000 There is an unrecorded liability in the books of Kalaw amounting to P2,000 and accrued interest on loans to Borromeo amounting to 5% of the loans. How much is the total capital of the partners before the agreed adjustmentsOn January 1, 2030, AAA, BBB, CCC and DDD formed ABCD Trading Co., a partnership with capital contributions as follows: AAA – P50,000; BBB – P25,000, CCC – P25,000 and DDD – P20,000. The partnership agreement stipulates that each partner shall receive a 5% interest on capital contributed and that AAA and BBB shall receive salaries of P5,000 and P3,000, respectively. The agreement further provides that CCC shall receive a minimum of P2,500 per annum and DDD, a minimum of P6,000 which is inclusive of amounts representing interest and their respective shares in partnership profits. The balance of the profits shall be distributed among AAA, BBB, CCC and DDD in the ratio of 3:3:2:2. 15. What amount must be earned by the partnership in 2030, before any charge for interest and partners’ salaries, in order that AAA may receive an aggregate of P12,500 including interest, salary and share of profits? A. P30,667 B. P32,333 C. P16,667 D. P30,000 16. RRR is trying to decide whether to accept a…GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…
- 14. On March 1, 2020, Apalla and Cabañero formed a partnership with each contributing the following assets: Cabañero P502,500 P 1,172,500 1,256,250 3,768,750 Apalla Cash Machinery and equipment 418,750 Building Furniture and fixtures 167,500 The building is subject to mortgage loan of P1,340,000, which is to be assumed by the partnership. Agreement provides that Apalla and Cabañero share profits and losses 30% and 70%, respectively. On March 1, 2020 the balance in Cabañero's capital account should be: a. P6,197,500 b. P5,259,500 C. P5,108,750 d. P4,857,500 15. The same information in the previous number, except that the mortgage loan is not assumed by the partnership. On March 1, 2020 the balance in Cabañero's capital account should be: a. P6,197,500 b. P5,259,500 C. P5,108,750 d. P4,857,500A, B and C decided to form ABC Partnership on January 1, 2022.. . It was agreed that A will contribute an equipment with historical cost of P800,000 and accumulated depreciation of P500,000. On the date of formation, the fair value of equipment was P400,000. B will contribute an automobile with carrying amount of P1,200,000 and fair value of P1,500,000. The automobile is subject to a loan payable amounting to P300,000 to be assumed by the partnership. The partners agreed that C will have to contribute cash equal to half of B's capital. Compute the total capital of the partnership.Coco and Martin agreed to form a partnership which shall be engaged in the buy and sell of RTW apparels. The following items are being invested to form CM Partnership: AGREED VALUATION COCO MARTIN Cash P100,000 P100,000 Merchandise Inventory 100,000 Land 200,000 Building 400,000 Equipment 200,000 Subtotals P400,000 P700,000 Mortgage on building assumed by the partnership (200,000) Totals P400,000 P500,000 Instruction: Prepare journal entries to record the formation of CM Partnership: A. Assuming that Coco and Martin agree that each partner is to receive a capital credit equal to the agreed valuation of the net assets each partner invested. B. Assuming that Coco and Martin agree that each partner is to receive an equal capital interest - goodwill approach. C. Assuming that Coco and Martin agree that each partner is to receive an equal capital interest - bonus approach.
- Mighty Darrel and Super Zigg formed a partnership and agreed to have an equal interest in thepartnership’s assets. They agreed to make the following contributions : Darrel contributed 100,000and Zigg contributed 84,000 in identifiable assets. Under the bonus approach, what is the amount ofbonus from Darrel to Zigg capital? A. 46,000B. 16,000C. 8,000D. 0On February 14, AA and BB formed a partnership and contributed the following assets at historical costs: AA BB Cash P600,000 P200,000 Inventories Furniture and fixtures Delivery equipment Land The land was subject to a mortgage which has an unpaid balance of P50,000. The mortgage will be assumed by the partnership. AA and BB agreed to share profits and losses in the ratio of 1:2, respectively. The partners agreed to contribute inventories (BB is to contribute inventories worth 2.5 times the peso value of the inventories to be contributed by AA) in order to have their capital credits in the same ratio as their profits and losses ratio.AA and BB are partners engaged in a manufacturing business. Transactions affecting the partners’ capital accounts in 2022 are as follows: AA BB Debit Credit Debit Credit Beg. Balance P250,000 P350,000 April 1 150,000 100,000 June 30 125,000 250,000 September 1 225,000 300,000 October 1 350,000 200,000 The income summary has a debit balance of P225,000. Agreement between AA and BB are as follows: Interest on average capital at 8%. Salaries of P125,000 and P175,000 are given to AA and BB, respectively. Bonus to BB at 25% of net income after deducting interest and salaries but before deducting bonus. Balance is to be divided equally. How much is the net increase (decrease) in BB’s capital account in 2022?