Pedro and Jose form a partnership for the first time. Their investments are; Pedro is to invest cash amounting to P 70, 000 and Jose is to contribute Merchandise inventory at a P 10,000 cost with fair value of P 20, 000 and Computer equipment at a cost of P 50, 000 with a fair value of P 30, 000. Required: Prepare the necessary journal entries to record the investment of each partner.
Q: How does Depreciation Expense impact Declan's Designs' 2022 Statement of Cash Flows? Question 16 ...
A: What is Depreciation? It is a decrease in the monetary value of a fixed asset due to normal wear and...
Q: reports income by the percentage of completion method. In 2019, Crevar started a P2,000,000 construc...
A:
Q: How does Interest Payable impact Declan's Designs' 2022 Statement of Cash Flows? Question 22 opti...
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: 1. How much is the increase in the capital of Choy after taking into account all transactions?
A: Financial statements are the set of records of the financial transactions and position of a business...
Q: Josh purchased a new machine for his business. Josh expects to produce 80 products at P 100,000.00 p...
A: Cash flow is the flow of cash in entity. There can be inflow or outflow of cash depending upon the e...
Q: . Use the accounts listed to create a multistep income statement.
A: solution multistep income statement is a income statement where the operating income and expenses ar...
Q: Entity A had 200,000 ordinary shares outstanding all throughout 20x1. In 20x2, share issuances occur...
A: Solution Concept Earning per share =net income available for common shareholders / average outstandi...
Q: 5. The following account balances were taken from the 2021 adjusted trial balance of the Bowler Corp...
A: Income Statement is the statement which shows the net income earned or net loss incurred by the comp...
Q: Assume at December 31, 2020, Kraft Heinz Foods Inc. reported the following amounts (in millions) in ...
A: Here in this question, we are required to calculate two ratios. Debt to asset ratio showing how much...
Q: In 2018, the Board of Trustees of Ayala Foundation designated an amount of current funds for college...
A: solution concept current unrestricted funds current unrestricted funds means the fun...
Q: The vice president of marketing and the director of human resources have developed a proposal whereb...
A: Gross profit is the ratio of gross profit over net sales. It is required to measure the gross profi...
Q: Merville is a dealer in real properties. Merville requires 20% downpayment, and the balance is payab...
A: Answer: We have Gross profit = 40% of Selling price Selling price of lot 1 in 2019= P 1,350,000 Sel...
Q: Statement of Earnings, Statement of Retained Earnings, and Statement of Financial Position McDonald...
A: The income statement, along with the balance sheet and the statement of cash flows, is one of three ...
Q: Wolford Department Store is located in midtown Metropolis. During the past several years, net income...
A: Income statement is prepared by the business organizations so as to determine how much amount of Gro...
Q: nd of 3,000,000 for a fund set aside for operating expenses. The cost to transfer funds into this ac...
A: Optimum cash balance: It is the balance wherein the cost of depositing the fund is minimum if we com...
Q: On December 30, 2018, Ethnic Museum, a not-for-profit organlzation, recelved a P3,000,000 donation o...
A: A non-profit organization (NPO) is one that is not motivated by financial gain. They are not formed ...
Q: Record adjusting journal entries for each separate case below for year ended December 31. Assume no ...
A: >Adjusting entries are recorded, as part of completion of accounting cycle. >These are mad...
Q: On September 1, 2019, Jordan, Inc. acquired a patent for $600,000. The patent has 16 years remaining...
A: Date Account Titles and Explanation Debit Credit Sep'1 Patent $6,00,000 Cash $6,00,0...
Q: Upon further investigation, you have found that the amount of account payables for Companies A and X...
A: Ratio Analysis: Under Ratio analysis, various items of financial information in the financial stat...
Q: Comprehensive Problem: Reviewing the Accounting Cycle Talbot Riding Stables provides stables, car...
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred b...
Q: 2.1 Imagine you have been in business for a few months but you have not kept any proper records of y...
A: Journal entry is a process of recording and classifying business transactions into books of accounts...
Q: A company that was to be liquidated had the following liabilities: Income Taxes $ 15,000 Notes Payab...
A: Total Assets = Current assets + Land + Building Land is secured for notes payable. The question requ...
Q: urn not later than January 15, 2022. The tax due per his return is P100,000.
A: Failure to pay tax due according to rules and regulations before the stipulated date attracts the in...
Q: At the beginning of September, Helen Rojas started Rojas Wealth Management Consulting, a firm that o...
A: Statement of owner's equity = Capital + Net income - Withdrawals Net Income = Revenue - expenses As...
Q: Lancelot is a dealer of household appliances. He reported the following in 2019 and 2020: 2019 20...
A: Gross Income: For families and individuals, net pay is the amount of all compensation, pay rates, be...
Q: How do Dividends Paid impact Declan's Designs' Statement of Cash Flows? Question 30 options: ...
A: Financing Activities - All the issues and purchases of shares, Payment of Dividends, Issuance, and r...
Q: Knowledge Check 01 Select the correct term for the following types of users: Users Terms Customers P...
A: People who are outside the business entity and uses the business information to evaluate the perform...
Q: The following were taken from the records of LML Co. as of December 31, 2010: • Checks drawn but not...
A: The transactions till December 31 , 2010 cash will be included in LML's December , 2010 cash. Custom...
Q: For the months of January and February, Crane Ltd. recorded cash deposits in its books of $5,100 and...
A: Given that there are no deposits in transit at the beginning of January. Cash deposit in January and...
Q: ny had a profit of 450,00. 1. Assuming that there are three partners that agreed to share equally , ...
A: Solution: Profits are shares based on the profit sharing ratio. When profits are agreed to be shared...
Q: A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year an...
A: Economic order quantity in costing States the order quantity at which the ordering and carrying cost...
Q: Required information Problem 6-9B Record transactions and prepare a partial income statement using a...
A: Solution Concept Journal entry is a book where the business transactions are recorded It is recorde...
Q: Statement of Earnings and Statement of Financial Position Relationships Each column presents financ...
A: Relationship: Net Income/(loss)= Total revenue - Total expense Total Assets= Total liabilities + Tot...
Q: Partially correct answer icon Your answer is partially correct. Carla Corporation enters into a 7-ye...
A: SOLUTION WORKING - COMPUTING PRESENT VALUE OF LEASE LIABILITY- YEAR PAYMENTS PV OF $1 PV 0 3730...
Q: Definition The recording of transactions and events only, either manually or electronically. An info...
A: 1) The term Bookkeeping refers to the process which tells us how to keep record of financial transac...
Q: 13 -A beauty salon presents the following data: • Monthly rent: R$6,000.00; Salaries: R$12,000.00 IP...
A: As requested to ignore break even point so we are only answering variable cost.
Q: Age in days Receivable balances 0- 15 180,000 16 - 30 108,000 31 - 60 95,000 61 90 72,000 91 - 120 5...
A: Doubtful accounts are those accounts to whom business has made credit sales on account and it is dou...
Q: Job 123 was recently completed by BudolBudol Me Corporation. The following data have been recorded o...
A: The job cost is used to estimate the individual cost of the product. It includes both direct and ind...
Q: Calculate Joan's travel expense deduction for the trip, assuming the trip was made in 2021. 1,465 x
A: Travel expense refers to those expenses which are incurred by the employees of the company at the ti...
Q: For each account, identify whether it is included in a post- closing trial balance. Included in post...
A: All the temporary accounts like expenses, revenus and dividends are closed and are not shown in the ...
Q: Sales 60000 Variable Costs Fixed Costs 36000 20000 Earnings Before Interest and Taxes 4000 3000 1000...
A: The contribution margin is calculated as difference between sales and variable costs. The total cos...
Q: Assignment Details Using the data provided, perform the steps below to complete the final project...
A: Closing Entries - Closing entries are required to close the temporary accounts after making financi...
Q: Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31, 202...
A: In Philippines interest for late filing of income tax return is levy at 12% per year from the date t...
Q: 3. Commission. A Manager Salim from Roads and Bridges authority demanded a 25% commission/gift as ...
A: Introduction: The amount paid to employees or workers such as agents or third-party in addition to t...
Q: Incorrect answer icon Your answer is incorrect. Martinez Corporation entered into a finance lease to...
A: GIVEN calculation of value of right- of use asset value of lease liability = $72,735 Commission...
Q: Matoika Manufacturing's sales department has submitted the following sales budget for the upcoming f...
A:
Q: Record adjusting journal entries for each separate case below for year ended December 31. Assume no ...
A: journal entry help in keeping record of transaction. Transactions may have Debit balance or credit b...
Q: Salaries Payable. At year-end, salaries expense of $25,500 has been incurred by the company, but is ...
A: Solution: Adjusting entries are those entries which are made to match the revenue or expense to the ...
Q: Required information Problem 6-9B Record transactions and prepare a partial income statement using a...
A: The journal keeps the record for day to day transactions of the business. Under periodic inventory s...
Q: If you become aware of a breach or violation, you should
A: Breach or violation of the terms and conditions by the employee is a commit of fraud or revealing th...
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- FINANCIAL ACCOUNTING AND REPORTING LEARNING MODULES 11. Under the bonus method, the asset contribution of the partner receiving a bonus is debited at a. fair value b. an increased amount with a corresponding decrease to the other partner's asset 12. Qand R formed a partnership. Q contributed cash of P500,000 while R contributed land with a carrying amount of P400,000 and a fair value of P800,000. The land has an unpaid mortgage of P200,000 which is assumed by the partnership. How much is the correct valuation of R's capital immediately after the partnership formation? a. P400,000 b. P500,000 C. P600,000 d. P800,000 contributions c. a decreased amount with a corresponding increase to the other partner's asset contributions d. bor c, depending on which partner is receiving the bonus 13. On July 1, a partnership was formed by Wand 14. Tingga contributes equipment to a B. W contributed the cash. B previously a sole proprietor, contributed property other than cash including realty subject…Instruction: Prepare the answers and solutions in written form using a clean paper (e.g. Yellow pod, bond paper, notebook etc.) and submit a snapshot in CANVAS. The balance sheet of A on November 30, 2020 before accepting B as his partner to form AB Partnership is presented below: Assets: Cash 120,000 Accounts receivable 48,000 Less: Allowance for uncollectible accounts 3.000 45,000 Notes receivable 60,000 Merchandise inventory 27,000 Equipment 72,000 Less: Accumulated Depreciation 6,000 56,000 Total assets 318,000 Liabilities and Capital Accounts payable 12,000 Notes payable 60,000 A, Capital 246,000 Total liabilities and capital 318,000 It is agreed that for the purpose of establishing A's interest the following adjustments shall be made: a. The accounts receivable is estimated to be 90% realizable. b. Interest at 8% of notes receivable dated March 1, 2019 is to be accrued. c. Merchandise inventory is to be valued at P21,000. d. The equipment is under-depreciated by P4,800. e.…ageNOWv2 | Online teachin x + keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false еBook Show Me How E Calculator Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $204,000 and that Shannon is to invest $68,000. Black is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. C. In the ratio of time devoted to the business. d. Interest of 6% on original investments and the remainder equally. e. Interest of 6% on original investments, salary allowances of $45,000 to Black and $75.000 to Shannon, and the remainder equally. f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following…
- Required information Important Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. [The following information applies to the questions displayed below.] ** Ramer and Knox began a partnership by investing $68,000 and $102,000, respectively. During its first year, the partnership earned $205,000. Prepare calculations showing how the $205,000 income is allocated under each separate plan for sharing Income and loss. Important Notel Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. 1. The partners did not agree on a plan, and therefore share Income equally Ramer Knox Show Transcribed TextX FINAL EXAM APRA SEMESTER-II m sct.edu.om/elearning/mod/quiz/attempt.php?attempta lah - Elearning If a new partner pays his share of goodwll In cash? Which method is appled in the treatrnent of goodwll? O a Premium method of O b. Average profit method Oc Super profit method e d. Revaluation method Clear my choice All and Taminm startod a partnership business on Ist April 2018 with capitals of OMR 600,000 ona OMR 140,000 respectively. ll introduced OMR 100,000 as additional capitol on Ist October 2019. interest on copital isto be allowed at 10% per annum. Calculate the Interest on oapital payable to Ali for the year ending 31st March 2019? ut of O a All OMR67500 O b. All OMR 65,000 OC AI OMR 60,000 O d. None ot these ore corrent E18 Intorest on pothes capital is colculaed on thep Oo. Opening balance of tapital only Oh Closing balance ol capitol only O C Opening balance of copixal and additionalcapital introduced during the year O d. Average Copitol X, Y gnd 7 are sharing pinrn the…ageNOWv2 | Online teachin x + keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress%3false еВook Show Me How Calculator Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following balance sheet information is provided by Freeman, sole proprietorship: Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 Cash $36,150 Accounts receivable $68,000 Less: Allowance for doubtful accounts 4,000 64,000 Land 163,000 Equipment $63,000 Less: Accumulated depreciation-equipment 39,000 24,000 Total assets $287,150 Accounts payable $20,200 Notes payable 58,750 Hannah Freeman, capital 208,200 Total liabilities and owner's equity $287,150 Freeman obtained appraised values for the land and equipment as follows: Land $227,000 Equipment 18,700 Check My Work Next 10:5 - ) all 10/2 insert prt sc 411 + backspc 9% 5 7\ 8. R T Y U H K
- CengageNOW2| Online teachin X Erie Community College : Home x Student Home ps://v2.cengagenow.com/iln/takeAssignment/takeAssignmentMain.do?invoker%=&takeAssignmentSessionLocator... Calculator Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $50,000. What amount of loss on realization should be allocated to Alpha? Oa. $50,000 Ob. $30,000 Oc. $60,000 Od. $20,000Task 2: X and Y share income of their partnership in a 2:3 ratio. X and Y receive salaries of $18,000 and $12,000, respectively. a) How would they share a net income of $30,000 (before salaries are distributed)? b) You should make the journal entry for this activity. c) In which ways will the results in a) and b) be changed if the ratio is 1:4?Required information Important Notel Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. The following information applies to the questions displayed below] 5 Ramer and Knox began a partnership by investing $68,000 and $102,000, respectively. During its first year, the partnership earned $205,000. Prepare calculations showing how the $205,000 income is allocated under each separate plan for sharing income and loss. O Important Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. 2. The partners agreed to share income and loss in proportion to their initial investments. Net Income is $205,000. (Do not round Intermediate calculations.) A $68.000/5170 000 Fraction to Allocate Ramers Share Fraction to Allocate Knox's Share of Total Income Allocated Show Transcribed Text I
- EXERCISE 8. Statement Preparation. The partnership of Rafa, Andy, and Novak was formed and started operations on January 1 of this year under the business name Grand Slam Tennis Center (GSTC), a business following the calendar year. The initial contributions of each partner were as follows: Rafa P350,000 Andy P300,000 Novak P100,000 Cash Training Equipment 200,000 On August 31, Rafa invested an additional 975,000 cash in the partnership. Andy made a permanent cash withdrawal of P60,000 on May 1 and reinvested P70,000 cash on October 1. According to partnership agreement, profits and losses are divided using average capital after the following: • 10% interest on average capital balances; • Monthly salary allowances of P5,000 and P8,000 for Andy and Novak, respectively; and • 10% bonus to Rafa, the managing partner, based on net income before bonus and 30% income tax.Learning SE MINDTAP evo/index.html?deploymentid=60338517901669990751687760&elSBN=9780357517642&nbld=3626933&snap... ☆ lomework 6300. 1 mancial Lailuialvi vi a spicoubnicel. Hide Feedback Correct X f6 Quantitative Problem 1: You plan to deposit $2,200 per year for 6 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. a. What amount will be in your account at the end of 6 years? Do not round intermediate calculations. Round your answer to the nearest cent. 4 b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Do not round intermediate calculations. Round your answer to the nearest cent. 6 Hide Feedback Incorrect F Check My Work Feedback Review the FVAN definition and its equation. Q Search Understand the difference between an ordinary annuity and an annuity due. Be careful about the order of mathematical operations if using the equation. If using a financial calculator, be…ibution Name: Program-Year-Section Multiple Choices 1 Date Professor: Score Vim Tak and Gu are partners in the KIMTAKGU partnership Tak, the general purely industrial partner. The partnership operations commenced on July 1, 20x1. From the period July 1 to end of the calendar year accounting period December 31, 20sl: the partnership incurred a loss of P30,000. During the calendar year 20x2, the business earned a profit of P240,000. So the total profit for the last two calendar tter of ame as year was only P210,000. er who profi Case 1. In the Articles of Partnership, it was agreed that the partners would share in profits equally. artners should 1. How much is the share of Kim from the loss during 20x1? a. P 30,000 b. P 15,000 c. P 10,000 d. Not given ensive 2. How much is the share of Tak from the loss during 20x1? a. P 30,000 b. P 15,000 c. P 10,000 d. Not given ling to fits or e and 3. How much is the share of Gu from the loss during 20x1? a. P 30,000 b. P 15,000 c. P 10,000 d. Not…