Q8 ABC Bakers is a partnership concern owned and operated by Mr. X and Mr. Y. Identify the option that reflect the correct treatment of accounting transaction in the books of ABC Bakers? Select one: a. Mr. X borrowed Mr. Y money from a partnership’s bank account to buy a car for personal use: Debit vehicle; Credit Bank b. Mr. Y purchased an oven for the bakery using his personal credit card: Debit Oven (Asset); Credit Equity Capital c. Mr. X paid his house rent from the business bank account. Debit Rent expense; Credit Bank B d. Mr. Y paid out of bu
Q: data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment…
A: Payback period is the term which is defined as the time period taken to recover the investment or…
Q: Suggest five internal strategies that may be employed by management to improve an organization…
A: From the given budget we can see that the company is clearly struggling with its cash flows. The…
Q: 31-Dec-22 2022 2021 Account Name Debit Credit Debit Credit Cash Accounts Receivable Supplies…
A: Formula: Net income =Revenues - Expenses.
Q: Adams Company established a predetermined variable overhead cost rate at S10.00 per direct labor…
A: Formula: Variable overhead cost variance = ( Standard cost - Actual cost ) x Actual hours
Q: A schedule of budgeted cash collections for trade receivables (sales on account) for each of the…
A: SALLAT Household Furnishings & Appliances is a family-owned business. As a management accountant…
Q: 3. Machinery, computers, and human skills and abilities are part of an organization's a. Environment…
A: Every business runs for the purpose of generating profit. Investment of resources is important for…
Q: he following information for the past year for the Magic Corporation has been provided: Fixed costs:…
A: Contribution margin refers to a gross or per unit basis. it shows that the incremental money is…
Q: Several years ago, Western Electric Corp. purchased equipment for $22,000,000. Western uses…
A: The calculation of book depreciation and tax depreciation has been made as follows: Book…
Q: suggested retail price (MSRP) in each
A: In this question, we have to compute the record of sales.
Q: Do P5-36A Preparing a multi-step income statement, and journalizing closing entries. Just do…
A: Rachel Rey Music Company Income Statement For the period ended June 30, 2018 Sales Revenue…
Q: A and B form the equal AB partnership on January 1 of year 1. A contributes depreciable equipment…
A: A partnership is a positioning between two or more people to look after business operations and…
Q: Walmart Blackout Power Company constructed a new power plant to supply energy to the Castle…
A: Avoidable interest relating to non-asset specific borrowing: Principal x Interest Rate Interest…
Q: Use the following to answer questions 20 – 24 On January 1, year 1, JT borrows $41,000 to purchase a…
A: Since you have posted two independent questions, thus, as per the guidelines, the solution to the…
Q: A local dental practice decides to run a Groupon campaign. The campaign offered $340 worth of dental…
A: Groupon Campaign Offer price = $145 No. of Coupons Sold = 250 85% redeemed 23% of new customers come…
Q: Discuss the major characteristics of a theory.
A: Discussion of major characteristics of a theory
Q: Presented below is information related to Al-Arab Company. Its capital structure consists of 80,000…
A: The question is related to the Ratio Analysis and Financial Statements for the year ended December…
Q: Prepare the following financial statements for Sea View Tour. income Statement for the year ended 31…
A: Financial statements are organized summaries of full information which show the financial position…
Q: Compute cost of goods sold and gross profit using the FIFO inventory costing method and using the…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method of…
Q: The payroll register of Chen Heritage Co. indicates $2,220 of social security withheld and $55 of…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: PA9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO…
A: In the given case, journal entries are required to be prepared to record the acquisition and…
Q: Sheridan Homes Ltd., a private company reporting under ASPE, reported the following for the year…
A: cash flow from investing activities includes the inflow and out flow of all the cash from the…
Q: Required Supply the missing information in the following table for Gibson Company. (Do not round…
A: Operating Income is one of the important measure of profitability of the business. Operating income…
Q: Whispering Winds's Christmas Tree Farm Ltd. grows pine, fir, and spruce trees. The farm cuts and…
A: Answer; As Given in the question Whispering Wind's Christmas Tree Farm Ltd. produces pines, fir, and…
Q: REQUIRED: Prepare in proper format a Cash Flow Statement for Alexis Inc., using the indirect method.
A: In the given question, financial statement of Alexis Inc is mentioned in detail. With the available…
Q: Accordingly, the following entries relating to the contingency for warranty costs were recorded…
A: Warranty expenses are the expenses that are incurred with respect to the repair, replacement, or…
Q: Below is United Delivery Service’s (UDS) stockholders' equity for the year ended 2022:
A: Common stockholders are the owners of the company. Comon stock issued at…
Q: Mr H earned taxable income from three separate employers in 2021, all withheld. Wages from the first…
A: Withheld tax is the tax amount which has been computed as per the tax schedule table and rates and…
Q: Last year Hever Inc. had sales of $1,000,000, based on a unit selling price of $400. The variable…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…
A: The Break-even point indicates that total units are to be sold by the business entity to recover its…
Q: Is it really vital for a manufacturing company to prepare a budgeted income statement and balance…
A: A budgeted income statements statement that forecasts earnings, revenue, and expenses for the coming…
Q: Required information Use the following information for the Exercises below. [The following…
A: In the context of the given question, we can solve this using the gross profit method. The gross…
Q: Using the AFN equation, forecast the additional funds Beasley will need for the coming year. Do not…
A: Additional funds needed is a concept related to finance that is used by the companies whenever the…
Q: Large trucks are an important piece of the logistics chain. However, there were 333,000 large truck…
A: Given Large trucks are an important piece of the logistics chain. However, there were 333,000 large…
Q: Another team member who is preparing the Budgeted Balance Sheet for the business for the same…
A: Diversified cash budget Trade Receivable Budget Trade Payable Budget
Q: Oa The Lessee recognizes a single Lease Expense on the Income Statement for a Finance Type Lease. Ob…
A: The answer for the true or false questions and relevant explanation are presented hereunder :…
Q: Oa the Accumulated Other Comprehensive Income Gan or Loss account balance is less than the comdor,…
A: The answer is stated below:
Q: O a. margin of safety point O b. breakeven point O c. unit contribution margin O d. total cost point
A: The correct option is: Breakeven Point
Q: Quantity Cost $126 31 54 Net Realizable Value $157 26 Product Revolvers 14 27 Spurs Hats 11 44 At…
A: Note: As per generally accepted accounting policies, inventory is reported at the lower of Cost or…
Q: Randall Corporation (a C Corporation) acquires an apartment building for $200,000 on September 1,…
A: As per IRS rules you can depreciation apartment builidng used for business as…
Q: Tanck Industries manufactures and sells three different models of wet dry shop vacuum cleaners.…
A: Introduction : The contribution margin is calculated by subtracting the selling price from the…
Q: what will be the company's break-even point in units?
A: Break-even point in units is the number of units at which there is no…
Q: The ManU Hotel is located close to Manchester United's football stadium. It has a souvenir shop that…
A: Quarterly Purchases Budget for Hats Quarter 1 Quarter 2 Quarter 3 Quarter 4 Units…
Q: Use the following to answer questions 8 – 10 (Round answers to the nearest dollar) BZ Corp issues…
A:
Q: There is a firm, which we have identified to buy. It has $100 million, $30 and $70 m assets, equity…
A: Answer:- Meaning of acquisition:- Acquisition is the process where one firm buys the majority…
Q: Taxable Income €500,000 330,000 400,000 1. Year 2018 2019 2020 2. On January 2, 2018, heavy…
A: Given : In this question all the values related to Tax Depreciation of the year 2018 to 2021. The…
Q: Pretzel Company acquired the assets (except for cash) and assumed the liabilities of Salt Company on…
A: Journal entry refers to the first step of accounting which involves the recording of monetary…
Q: Kenneth McFarland's weekly gross earnings for the week ending March 9 were $2,170, and her federal…
A: Formula: Social security tax amount = Gross pay x Social security tax rate
Q: The president of Mission Inc. has been concerned about the growth in costs over the last several…
A: Total cost refers to the sum total of all the expenses born by a company while manufacturing its…
Q: On January 1, 2016, Matthew Company's work in process inventory account had a balance of $46,000.…
A: A cost sheet is a method of allocating total costs into different categories. It helps to identify…
Q8
ABC Bakers is a
Step by step
Solved in 5 steps
- True or False: Explain: Use the following information for the next three questions: Patricia and Anna enters into a contract to contribute cash to acquire a taxi. Patricia and Anna will have joint control over the operation of the taxi and will share equally in the revenues and expenses. 1. The contract between Patricia and Anna is a joint venture. 2. Patricia and Anna are referred to as a joint taxi venturers. 3. The taxi is referred to in IFRS 11 as separate vehicle. 4. Joint control exists when no single party is in position to control the activity unilaterally. 5. Joint control distinguishes an interest in a joint arrangement from other types of investment. 6. Tallmart enters into a contract to build a house for a customer. The contract identifies the customer as the 'owner' and is entitled to any asset created in case the contract is terminated before completion. Tallmart's performance obligation is most likely to be one that is satisfied at a point in time. Fact pattern: Tine, a…1. Nita and Bona, entrepreneurs, agreed to invest cash to put up a business selling signature bags. They agreed to share profits based on the legal provision. The following are the ledger postings for 2019: (see attached image) Direction: a) In chronological order, describe the transaction that took place. b) From the above postings, determine the agreements contained in the Articles of Co-Partnership regarding required contribution of each partner, allowable withdrawals, and profit sharing ratio. c) Give the last two entries (drawings and profit share). d) Prepare a statement of partner's equity for 2019.Jeff Zengel is a financial consultant to Rae properties Inc. a real estate syndicate. Rae Properties Inc. finances and develops commercial real estate (office buildings) The completed projects are then sold as limited partnership interests to individual investors. The syndicate makes a profit on the sale of these partnership interests. Jeff provides financial information for the Offering prospectus which is a document that provides the financial and legal details of the limited partnership offerings. In one of the project the bank has financed The construction of a commercial office building at a rate of 8% for the first four years, after which time the rate jumps to 12% for the remaining 21 years of the mortgage. The interest costs are one of the major ongoing costs of a real state project. Jeff has reported prominently in the prospectus that the break even occupancy for the first four years is 60% this is the amount of office space that must be leased To cover the Interest and…
- Jeff Zengel is a financial consultant to Rae properties Inc. a real estate syndicate. Rae Properties Inc. finances and develops commercial real estate (office buildings) The completed projects are then sold as limited partnership interests to individual investors. The syndicate makes a profit on the sale of these partnership interests. Jeff provides financial information for the Offering prospectus which is a document that provides the financial and legal details of the limited partnership offerings. In one of the project the bank has financed The construction of a commercial office building at a rate of 8% for the first four years, after which time the rate jumps to 12% for the remaining 21 years of the mortgage. The interest costs are one of the major ongoing costs of a real state project. Jeff has reported prominently in the prospectus that the break even occupancy for the first four years is 60% this is the amount of office space that must be leased To cover the Interest and…Ethics in Action Edward Seymour is a financial consultant to cornish Inc, Areal estate syndicate, Cornish finances and develops commercial real estate(office buildings) projects. The completed projects are then sold as limited partnership interests to individual investors. The syndicate makes a profit on the sale of these partnership interests. Edward provides financial information for prospective investors in a document called the offering "prospectus" This document discusses the financial and legal details of the limited partnership investment. one of the company's current projects, called JEDI 2, Has the partnership borrowing money from a local bank to build a commercial office building. The inerest rate on the loan is 6.5% for the first four years. After four years. The interest rate jumps to 15% for the remaining 20years of the loan The intrest expense is one of the major costs of this project and significantly affects the number of reenters needed for the project to break even,…Sole proprietorship converted to partnership. Revaluation of assets and liabilities required. Dominic, the proprietor of Suds and Bubbles Laundry Shop invites Augustine to be a partner in his business. Accounts in the ledger of Dominic on August 1, 2023 just before the admission of Augustine show the following: Account Titles Cash Accounts Receivables Allowance for Bad Debts. Laundry Supplies Furniture and Equipment Accumulated Depreciation - Furniture and Equipment Accounts payable Dominic, Capital Total Debit P215.000 120,000 87,500 750,000 Credit P6,000 168,750 92.500 905.250 P 1.172.500 P1,172,500 It was agreed that for the purpose of establishing Dominic's interest, the following revaluations shall be made: 1. The allowance for bad debts shall be increased by 5% of outstanding accounts receivable. 2. The Laundry Supplies inventory is to be valued at P 80,000. 3. And a professional appraiser estimated that the furniture and equipment is worth P550,000. 4. Electricity consumption…
- Edward Seymour is a financial consultant to Cornish Inc., a real estate syndicate. Cornish Inc. finances and develops commercial real estate (office buildings). The completed projects are then sold as limited partnership interest to individual investors. The syndicate makes a profit on the sale of these partnership interests. Edward provides financial information for the offering projects, which is a document that provides the financial and legal details of the limited partnership offerings. In one of the projects, the bank has financed the construction of a commercial office building at a rate of 10% for the first four years, after which time the rate jumps to 15% of the mortgage. The interest costs are one of the major ongoing costs of a real estate project. Edward has reported prominently in the prospectus that the break-even occupancy for the first four years is 65%. This is the amount of office space that must be leased to cover and general upkeep costs over the first four…1. Statement I: One who lends money/credit to the owner of a business establishment in consideration of which he will share in the profits in repayment of such credit, is presumed to be a partner. Statement II: If an employee received a share in the profits of the partnership in consideration of rendition of services, does not make the employee a partner. Both statements are True Statement I is True; Statement II is False Statement I is False; Statement II is True Both statements are False 2. A, B, and C are partners contributing the following amount: A=P50,000 B=25,000 and C=25,000. The partners did not agree on the profit and loss sharing. If there is a loss of P90,000, how much is their respective shares? A= 45,000, B=22,500 C=22,500 A= 50,000, B=20,000 C=20,000 A= 30,000, B=30,000 C=30,000 There will be no distribution of loss because it is not stipulated in the agreement. 3. Statement I: The mere sharing of gross returns establish the fact that it is a partnership, no…J Prepare adjusting entries to update the balances of some of the partnership accounts. Use "Capital Adjustments" account. If Merlita Pactanac will be admitted by purchasing 1/4 of the adjusted partners interest, how much is she going to pay and what is the journal entry to record her admission if the purchase is at book value. Kareen Labor, Lalaine Dajao and Leah Magno were partners in a business engaged in printing and publishing. The Statement of Financial Position reveals that their business obligations to outside creditors. has no Cash Accounts Receivable Inventories Equipment Total ASSETS 18-4 P120,000 150,000 260,000 300,000 P830,000 Instruction: PARTNERS' EQUITY Labor, Capital (30%) Dajao, Capital (20%) Magno, Capital (50%) Total P400,000 280,000 150,000 P830,000 On January 1, 20A, the partners agree to admit Jimwell Acenas as a new partner after considering the following revaluation and adjustments: 1. Allowance for doubtful accounts of P20,000 is to be established for…
- KIM and SHE YUN formed a partnership, each contributing asset to the business. KIM contributed inventory with a current market value in excess of its cost. SHE YUN contributed real estate with a cost in excess of its current market value. At what amount should the partnership record each of the following assets? Inventory Real Estate a Cost Cost b Market Value Cost c Cost Market Value d Market Value Market ValuePROBLEM RECOGNITION TASK Determine the maximum deposit insurance coverage by PDIC in the following items. 5. Ronel is a partner of MW Partnership and a stockholder of LG Corporation. He has the following deposit accounts in a closed bank: Ronel’s business (sole proprietorship) P350,000 Ronel’s personal savings account P500,000 Ronel and Jhun and Eff and Karla P600,000 Ronel and MW Partnership P650,000 Ronel and LG Corporation P400,000 What is the maximum deposit insurance coverage as far as Ronel is concerned?1. 2. EXERCISE 4. Journal Entries - Cash, non-cash, and industry contributions. Prepare and upload the journal entries to record contributions of Kim and Krislam into the partnership under the following independent assumptions: 3. Page 4. 9 Cash contribution amounting to P45,000 each. Kim contributed P35,000 cash and a store equipment with carrying value of $27,000. Krislam contributed P15,000 cash and a delivery vehicle with a fair market value of P195,000. Kim and Krislam agreed that each depreciable asset is overvalued by $4,000. Kim contributed P10,000 cash and furniture and fixtures with carrying value of P32,000. Krislam contributed P5,000 cash and a building with a fair market value of P295,000 and an unpaid mortgage of P27,500. Kim and Krislam agreed that building is undervalued by P9,000. Kim contributed P25,000 cash, a store equipment with fair market value of P47,000, and delivery vehicle with a fair market value of P175,000. Krislam, an industrial partner, was to contribute…
