Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 12, Problem 12SP
1.
To determine
State the factor that has to be considered by Person S while deciding the
2.
To determine
Prepare the
3.
To determine
Prepare the journal entry required to admit a new partner if the new partner invests cash of $20,090.
4.
To determine
State the percentage of new partners’ equity percentage.
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Problem 1
At the end of the its first year of operations on December 31, 2020, HEART ATTACK Company's
accounts show the following:
Capital
P 48,000
P 30,000
P 25,000
Partner
Drawings
Mr. Chicharon
P 23,000
P 14,000
P 10,000
Mr. Bulalo
Mr. L. Kawali
The capital balances represents each partner's initial capital investment. Therefore, net income
or net loss for 2020 has not been closed to the partners' capital accounts.
Instructions:
a. Journalize the entry to record the division of net income for the year 2020 under each of the
following independent assumptions.
1. Net income is P 30,000. Income is shared 6:3:1
2. Net income is P 40,000, Mr. Chicharon and Mr. Bulalo are given salary allowances of P 15,000
and P 10,000, respectively. The remainder is shared equally.
3. Net income is P 19,000. Each partner is allowed interest of 10% on beginning capital
balances. Mr. Chicharon is given a P 15,0000 salary allowance. The remainder is shared equally
b. Prepare a schedule showing the division…
Chapter 12 Solutions
Principles of Financial Accounting.
Ch. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - The Field, Brown Snow partnership was begun with...Ch. 12 - Prob. 10QSCh. 12 - Determine whether each characteristic describes a...Ch. 12 - For each separate case, indicate which type of...Ch. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 1APCh. 12 - Prob. 2APCh. 12 - Prob. 3APCh. 12 - Prob. 4APCh. 12 - Prob. 5APCh. 12 - Prob. 6APCh. 12 - Prob. 1BPCh. 12 - Prob. 2BPCh. 12 - Prob. 3BPCh. 12 - Prob. 4BPCh. 12 - Prob. 5BPCh. 12 - Prob. 6BPCh. 12 - Prob. 12SPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Review Samsungs 1938 to 1970 history at...Ch. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 5BTN
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