Problem: Module 3 Textbook Problem 10 Learning Objective: 3-9 Identify the primary characteristics of sole proprietorships, partnerships, and corporations Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $89,700 cash from Busby and $140,300 from Beatty. During Year 1, the partnership earned $60,800 in cash revenues and paid $42,350 for cash expenses. Busby withdrew $3,900 cash from the business, and Beatty withdrew $3,000 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for B&B's Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Income Statement Capital Statement Balance Sheet Stmt of Cash Flows Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) B&B PARTNERSHIP Statement of Cash Flows Check my w For the Year Ended December 31, Year 1 Cash flows from operating activities:

Problem: Module 3 Textbook Problem 10 Learning Objective: 3-9 Identify the primary characteristics of sole proprietorships, partnerships, and corporations Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $89,700 cash from Busby and $140,300 from Beatty. During Year 1, the partnership earned $60,800 in cash revenues and paid $42,350 for cash expenses. Busby withdrew $3,900 cash from the business, and Beatty withdrew $3,000 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for B&B's Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Income Statement Capital Statement Balance Sheet Stmt of Cash Flows Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) B&B PARTNERSHIP Statement of Cash Flows Check my w For the Year Ended December 31, Year 1 Cash flows from operating activities:

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 12.1APR

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Problem #3 On June 30, 2021 Gerry and Henry, competitors in business, decide to consolidate their business to form a partnership to be called GH Partnership. The statement of financial position of Gerry and Henry on this date are presented below: Gerry Company Statement of Financial Position June 30, 2021 Assets Cash P 5, 000 Accounts receivable 10, 000 Merchandise inventory 8, 000 Furniture and Fixtures 6. 000 Total Assets P 29, 000 Liabilities and Equity Accounts payable Gerry Capital Total Liabilities and Equity P 3, 000 26, 000 P 29, 000 Henry Company Statement of Financial Position June 30, 2021 Assets Cash P4, 000 Accounts receivable 8, 000 Merchandise inventory 10, 000 9, 000 P 31, 000 Furniture and Fixtures Total Assets Liabilities and Equity Accounts payable Henry Capital Total Liabilities and Equity P 6, 000 25, 000 P 31, 000 The conditions agreed by the partners for purposes of determining their interests in the partnership are presented below: 10% of accounts receivable is…
PROBLEM 1On June 30, 20x8 A, the sole proprietor of A Inc, expandsthe company and establishes a partnership with B and C. Thepartners plan to share profits and losses as follows: A, 50%;B, 25% and C 25%. They also agree that the beginning capitalbalances of partnership will reflect this same relationship.A asked B to join the partnership because his many businesscontacts are expected to be valuable during the expansion. B iscontributing P40,000 and a building that has an original cost ofP520,000, book value of P420,000, tax assessment of P310,000 andfair value of P370,000. The building is subject to a P242,000mortgage that the partnership will assume. C is contributingP66,000 and marketable securities costing P252,000 but arecurrently worth P345,000.A's investment in the partnership is his business. He plansto pay off the notes with his personal assets. The other partnershave agreed that the partnership will assume the accounts payable.The balance sheet for the A Inc follows:…
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.
QUESTION 7 Eden and Stein were in partnership, sharing profits and losses in the ratio 2:1. Their abridged statement of financial position as at 31 March 20x5 was: ASSETS Equipment at carrying value Vehicles at carrying value Inventory Accounts receivable Bank | EQUITY & LIABILITIES 5,600 Capital: E Eden 1,400 3.500 Current accounts: E Eden 6,500 1,500 Long - term borrowings Accounts payable 5,000 4,000 2,000 (1,000) 3,000 5,500 18.500 S Stein S Stein 18.500 • The partnership was sold to Diamond Ltd as a going concern. The company was incorporated with a registered capital of 20,000 ordinary shares of N$1 each. The partnership paid N$450 and Diamond Ltd NS1000 for expenses for the transfer. The agreement was as follows: 1. Eden would take over one vehicle at book value, that is, N$800, and Stein would take over the other vehicle at N$1.100. 2. Diamond Ltd would take over all assets and liabilities with the exception of bank and vehicles. 3. The assets were taken over at these valuation…
Chapter 2: Partnerships Exercise - 1 Computing initial partner investments Careem and Labeeb establish an equal partnership in both cquity and profits to operate a used- furniture business under the name of C&L Furniture. Careem contributes furniture inventory that cost $120,000 and has fair value of $160,000. Labceb contributes $60,000 cash and delivery cquipment that cost $80,000 and has a fair valuc of $60,000. Required: Assume that the initial noncash contributions of the partners are recorded at fair market value. A) Compute the ending balance of cach capital account under the bonus and goodwill approaches. B) Prepare the journal entries of the initial investments under both approaches.
CHAPTER 11 Partnerships 204 S Contribution Profit sharing Balance shared equally Cash withdrawal during year Exercise 11-3 Journalizing partnership entries LO2, 3 CHECK FIGURES: 1. Share of profit: Regal: $135,250; Merle: $41,750 On April 1, 2023, Harry Regal and Meghan Merle formed a partnership in Alberta, renting reusable m boxes. Regal 77,000 то 97,000 cash 107,000 salary allowance 15% of original capital investments reioan Exercise 11-4 Journalizing partnership entries LO2, 3 CHECK FIGURES: 1. Share of profit: Williams: $116,000; Xie: $44,000 On February 1 2023 Tessa Williams and Audron, v. C Unit x Price pe 62,000 Replaced x Price per Mer Estimated 137,000 land 50,000 building 15% of original capital investments Accruc Replac Estin Net Income during the year was $177,000 and was in the Income Summary account. Required 1. Present general journal entries to record the initial capital investments of the partners, their cash wit drawals, and the December 31 closing of the Income…
Chapter 11 Homework i 1 eBook View transaction list Problem 11-1A Methods of allocating partnership profit LO3 Jenkins, Willis, and Trent invested $276,000, $483,000, and $621,000, respectively, in a partnership. During its first year, the firm recorded profit of $657,000. ChatGPT Journal entry worksheet < Required: Prepare entries to close the firm's Income Summary account as of December 31 and to allocate the profit to the partners under each of the following assumptions: a. The partners did not produce any special agreement on the method of distributing profits. 1 Record to close income summary account. Note: Enter debits before credits. Date Dec 31 General Journal Saved Debit cation.com Credit M Question 1- Chapter 11 Homework - Connect Help Save & Exit Submit +7
5 Required information Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their beginning basis is $33,000 for Phil and $31,000 for Liz. The partnership had the following activity during the year: Income Interest income Dividend income (qualified) Long-term capital gains Total revenue Expenses Salaries and wages (nonpartners) Guaranteed payments Williams Johnson Depreciation (MACRS-includes $9,000 $ 179 expense) Interest expense Taxes and licenses Meals (100%) Auto Insurance (nonpartner health) Accounting and legal Repairs Charitable contributions Payroll penalties Total expenses Net income $ 336,123 1,259 4,586 13,458 $ 355,426 $ 47,000 Williams & Johnson Partnership's non-financial information is as follows: • Name: Williams and Johnson Partnership 75,000 50,000 41,888 5,220 15,548 15,257 5,254 6,000 2,800 1,200 2,500 500 $ 268,167 $ 87,259 Check m
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ACC 2000 Partnership & Corporation Assignment: Problem #8 Two Sole Proprietors Form a Partnership The business assets of Geron and Yumol appear below: Geron Yumol Cash 11,000 22,354 Accounts Receivable 234,536 567,890 Inventories 120,035 260,102 Land 603,000 Building 428,267 Furnitures and fixtures 50,345 34,789 Other Assets 2,000 3,600 Total 1,020,916 1,317,002 Accounts Payable Notes Payable 178,940 243,650 200,000 345,000 Geron, Capital Yumol, Capital 641,976 728,352 1,020,916 1,317,002 Geron and Yumol agreed to form a partnership contributing their assets and equities subject to the following adjustments: a. Accounts receivable of P20,000 in Geron's books and P35,000 in Yumol's are uncollectible. b. Inventories of P5,500 and P6,700 are worthless in Geron's and Yumol's respective books. C. Other assets of P2,000 for Geron and P3,000 for Yumol are tob e written off. Required: 1. Prepare the journal entries for the formation of the Partnership at at July 1. 2. Prepare the Statement of…
Homework Activity 1 A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000, B 1500, C 1000 Interest on drawings: A 200, B 150, C 100 Salary to Partners A 500 B 700 C 600 Commission to Partners A 200 B 300 C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.
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