Matthew and Hein sell to Melges a 1/3 interest in the Matthew - Hein partnership. Melges will payMatthew and Hein each $141400 for admission into the organization. Before this transaction,Matthew and Hein show capital balances of $209000 each. The journal entry to record the admissionof Melges willO show a credit to Melges, Capital for $282800.O show a debit to Hein, Capital for $141400.show a debit to Cash for $282800.O not show a debit to Cash.

The partnership is liquidated when there is admission or withdrawal of a partner. The partner's…

Answered: Matthew and Hein each $141400 for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a)Journalize the adjusting entries. b)Record the adjusting entries.
On October 1, 2020, Mary Graham organized a computer service company called Echo Systems. Echo is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Graham has adopted the calendar year for reporting, and expects to prepare the company's first set of financial statements as of December 31, 2020. The initial chart of accounts for the accounting system includes these items: Account Number 101 106 126 128 131 163 167 201 Account Name Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Computer Equipment Accounts Payable PART A: CHECK FIGURES: 4. Total Dr.= $159,450; Profit= $8,920; Total assets = $145,720 Oct. Required 1. Set up balance column accounts based on the chart of accounts provided. 2. Prepare journal entries to record each of the following October transactions. 3. Post the October entries. Account Number 301 302 403 623 655 676 684 699 4. Prepare a trial…
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Assuming the entity received a cash worth of 80,000, this 80,000 is from the customer who advances payment for the service to be render next month. The proper credit for this transaction is: a. Service Revenue b. Accounts Payable c. Owner’s Equity d. Unearned Revenue
Ralph Collins founded Collins Consignment Sales Company and the company was operated from his home. As of September 1, 2021, Collins decided to move to rented quarters and to operate the business on a full-time basis. He wishes to know how much net income the business has earned but has no prior knowledge of accounting and has approached your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Ralph in exchange for capital of Collins Consignment Sales Company: cash - $19,000, accounts receivable - $2,800, supplies - $2,050, and office equipment - $15,000. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $6,000. Paid the premiums on the property and peril insurance policies, $3,000. Received cash from clients as an advance payment for services to be provided in the coming months, $5,900. Purchased additional office equipment on account from…
A has an existing business and admits B as a partner in the business. Statement of Financial Position accounts of A just before the admission of B show: Cash, P26,000, Accounts receivable, P 120,000, Merchandise inventory, P180,000, and Accounts payable, P62,000. It was agreed that for purposes of establishing A's interest, the following adjustments be made: 1. an Allowance for Doubtful Accounts of 3% of accounts receivable is to be set up; 2. Merchandise inventory is to be adjusted upward by P25,000; and 3. Prepaid Expenses of P3,600 and Accrued Liabilities of P4,000 are to be recognized. If B is to invest sufficient cash to obtain 3/5 interest in the partnership, Compute the amount B contributes to the new partnership.
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Journalize the following: 1. On the books & records of Company A: On May 2nd, Company A received $100 of interest income from the bank earned in April. If the books are on an accrual basis, record the entry in April and in May when cash was received April May 2. On the books & records of Company A: In January, Company A purchased Investment in XYZ for $100. Payment was made in cash. In March, Company A sold Investment in XYZ for $150. Payment was received in cash. 3. On the books & records of Company A: On April 1st, Company A paid $1,200 for insurance expense that covers the year 4/1/17-3/31/18. Record 4/1/17 entry for payment of $1,200 Record 4/30/17 journal entry 4. There are 2 parallel funds, Fund A and Fund B. Together, the funds will make an investment of $100k, with a 65/35 split. The investment will be paid in cash, however, Fund B does not currently have any cash so Fund…
The company takes out a $1,000,000 loan from the bank. Provide the journal entry that would be necessary to record the transaction.
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The following information is available for the R. KandamilCompany before closing the accounts. After all of the closingentries are made, what will be the balance in the R.Kandamil, Capital account? Total revenues . . . $300,000Total expenses . . 195,000R. Kandamil, Capital . . . . . . $100,000R. Kandamil, Withdrawals . . 45,000 a. $360,000 d. $150,000b. $250,000 e. $60,000c. $160,000

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