Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet. Accounts payable . $ 5,000 Accounts receivable . $10,000 Cash . 40,000 Gomez, Capital . 15,000 Land . 25,000 Long-term notes payable . 20,000 Pearson, Capital . 30,000 Litt, Capital . 5,000

Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet. Accounts payable . $ 5,000 Accounts receivable . $10,000 Cash . 40,000 Gomez, Capital . 15,000 Land . 25,000 Long-term notes payable . 20,000 Pearson, Capital . 30,000 Litt, Capital . 5,000

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section: Chapter Questions

Problem 3AP

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1. Annual salary allowance to Gonzalez of $25,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Gonzalez and Van Home, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: Van Horne: S
Financi (xii) At the end of the first month, they each took $2,000 out of the bank account as a personal withdrawal. (xiii) Their best estimate of depreciation on the van and the catering equipment was $500 for the month. would be recorded in the partnership's accounting records. Indicate the Use the accounting equation to show how each of the above transactions effect of each one on assets, liabilities, and equity.
Kenny and Jeff form a partnership. During the year, Kenny and Jeff withdraw $29,000 and $24,000, respectively. Which of the following will be included in the journal entry to record the withdrawals? OA. debit to Kenny, Withdrawals for $29,000 OB. credit to Kenny, Withdrawals for $29,000 OC. credit to Jeff, Withdrawals for $24,000 OD. debit to Jeff, Withdrawals for $5,000 ***
Paul and Carl are partners in a business. The partnership agreement included the following: Interest on drawings is to be charged at 15% Interest on capital is to be charged 10% Paul is to be paid a salary of $6,500 Profit or loss is to be shared in the same ratio as their capital The following trial balance was extracted after the calculation of the net income for the year ended December 31,2021 Debit Credit $ $ Net profit for the year 42,000 cash 8,700 bank 58,000 creditors 14,000 debtors 34,000 fixtures 100,000 Provision for depreciation on fixtures 10,000 building 250,000 Provision for depreciation on building 50,000 Loan 220,000 Capital Paul 200,000 Carl 50,000 Drawings Paul 15,000 Carl 10,000 Current Account Paul 8,400 Carl 2,800 Motor vehicle 160,000…
Item Nos. 17 and 18 are based on the following information: On December 31, 200C, the partnership of Hue and Teng realized a profit of P 225,000. The capital accounts of the partners showed the following debits and credits during 200C: Hue Teng March 1 credit -- P 20,000 P 50,000 July 1 debit -- 25,000 August 1 credit 30,000 October 1 debit- 10,000 November 1 credit- 65,000 17. Assuming that the profit will be divided using the average capital, the share of Hue is: a. P 80,000. С. P 120,000. b. P 90,000. d. P 135,000. 18. If the profit will be divided equally after providing 12% interest on the opening capital, the share of Teng in the profit is: P 114,000. C. P 120,000. a. b. P 118,000. d. P 135,000.
The condensed, adjusted trial balance of the Gary and James Partnership as at December 31, 2024, appears below: Current assets Equipment Accounts payable Long-term debt GARY AND JAMES PARTNERSHIP Adjusted Trial Balance December 31, 2024 Gary, capital Gary, drawings James, capital James, drawings Service revenue Operating expenses 1. 2. Debit $50,000 117,500 295,000 270,000 93,000 $825,500 Credit $32,000 69,000 51,000 43,000 630,500 The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows: A salary allowance of $347,500 to Gary and $287,500 to James. The remainder is to be divided equally. $825,500
The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y3: Lambert and Yost Trial Balance December 31, 20Y3 Debit Balances Credit Balances Cash 34,000 Accounts Receivable 47,800 Supplies 2,000 Land 120,000 Building Accumulated Depreciation-Building Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Tyler Lambert, Capital Tyler Lambert, Drawing Jayla Yost, Capital Jayla Yost, Drawing 157,500 67,200 63,600 21,700 27,900 5,100 135,000 50,000 88,000 60,000 Professional Fees 395,300 Salary Expense Depreciation Expense-Building 154,500 15,700 Property Tax Expense 12,000 Heating and Lighting Expense Supplies Expense Depreciation Expense-Office Equipment Miscellaneous Expense 8,500 6,000 5,000 3,600 740,200 740,200 The balance in Yost's capital account includes an additional investment of $10,000 made on April 10, 2OY3. (Continued)
The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
Adriana Gonzalez and Sylvester Van Horne formed a partnership, dividing income as follows: Annual salary allowance to Gonzalez of $25,000. Interest of 5% on each partner’s capital balance on January 1. Any remaining net income divided to Gonzalez and Van Horne, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne?Gonzalez: $fill in the blank 1Van Horne: $fill in the blank 2
Items 18 to 20 are based on the following data. The partnership business of John Estrada and Peter Arroyo was formed on January 2, 2020. At that date, the following assets were invested as derived from their respective sole proprietor's books. Book of Estrada Book of Arroyo 160,000 Cash. .P145,000 Accounts receivable. 80,000 50,000 Allowance for doubtful accounts. (5,000) (3,000) Merchandise inventory. 200,000 190,000 Partner's agreement as follows: 1. Estrada and Arroyo's adjusted capital contributions must be equal. In the event that one's contribution will exceed the other, any one of them shall withdraw "Cash" from their respective investment. 2. Their respective Accounts receivable should have a probability of collections. 80% for Estrada and 90% for Arroyo. 3. Merchandise inventory will be caried in the partnership book "as is". 4. Prepaid expense of P20,000 should be recognized for Estrada and P5,000 Accrued expenses for Arroyo. 18. How much is the adjusted capital contribution…
Numbers 11-12 (Based on Book Values with Adjustments) On July 1, AA and BB decided to form a partnership. Balance sheet items for AA and BB on July 1 before adjustment are given below: Cash Accounts receivable Inventory Office supplies Equipment Accumulated depreciation Total assets Accounts payable Capital Total liabilities and capital 6,667 withdraw 3,000 invest 8,333 invest AA P 31,000 26,000 32,000 20,000 (9,000) P 100,000 B. AA-81,250 BB-75,000 P 28,000 72,000 P 100.000 C. AA-100,000 BB-75,000 BB P 50,000 20,000 AA and BB agreed to the following adjustments: (a) AA and BB's inventory is to be valued at P31,000 and P22,000, respectively; (b) Accounts receivable of P2,000 in AA's book and P1,000 in BB's books are uncollectible; D. AA 62,000 BB-93,000 24,000 5,000 (c) Accrued salaries of P4,000 for AA and P5,000 for BB are still to be recognized in the books; (d) Unused office supplies of AA amounted to P5,000 while that of BB amounted to P1,500; (e) Prepaid rent of P7,000 and P4,500…
Item Nos. 17 and 18 are based on the following information: On December 31, 200C, the partnership of Hue and Teng realized a profit of P 225,000. The capital accounts of the partners showed the following debits and credits during 200C: Hue Teng March 1 credit P 20,000 P 50,000 July 1 debit 25,000 August 1 credit 30,000 October 1 debit-- 10,000 November 1 credit- 65,000 17. Assuming that the profit will be divided using the average capital, the share of Hue is: a. P 80,000. b. P 90,000. с. Р 120,000. d. P 135,000. 18. If the profit will be divided equally after providing 12% interest on the opening capital, the share of Teng in the profit is: a. P 114,000. P 120,000. C. b. P 118,000. d. P 135,000.