Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 12, Problem 3PA
1.
To determine
Prepare income statement for 20Y3, indicating the division of the income.
2.
To determine
Prepare statement of partnership equity for 20Y3.
3.
To determine
Prepare the
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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)
Financial Statements for Partnership
The ledger of Camila Ramirez and Ping Xue, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 20Y2:
Ramirez and Xue
Trial Balance
December 31, 20Y2
Debit Balances
Credit Balances
Cash
40,700
Accounts Receivable
38,800
Supplies
1,500
Land
97,000
Building
105,600
Accumulated Depreciation—Building
60,600
Office Equipment
44,600
Accumulated Depreciation—Office Equipment
18,800
Accounts Payable
28,900
Salaries Payable
3,100
Camila Ramirez, Capital
100,000
Camila Ramirez, Drawing
43,700
Ping Xue, Capital
58,200
Ping Xue, Drawing
63,100
Professional Fees
349,200
Salary Expense
141,600
Depreciation Expense—Building
14,100
Heating and Lighting Expense
7,000
Depreciation Expense—Office Equipment
4,400
Property Tax Expense
8,700
Supplies Expense
5,000…
Entries for Allocation of Net Income
Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1.
Spurlock invested $80,000 and Wilson invested $20,000. For the fiscal year ended
June 30, 20-2, a net income of $81,000 was earned. Determine the amount of net
income that Spurlock and Wilson would receive under each of the following
independent assumptions:
Spurlock
Wilson
1. There is no agreement concerning the distribution of net
income.
2. Each partner is to receive 10% interest on their original
investment. The remaining net income is to be divided equally.
3. Spurlock and Wilson are to receive a salary allowance of
$35,000 and $26,000, respectively. The remaining net income is
to be divided equally.
4. Each partner is to receive 10% interest on their original
investment. Spurlock and Wilson are to receive a salary allowance
of $35,000 and $26,000, respectively. The remaining net income
is to be divided as follows: Spurlock, 75% and Wilson, 25%.
Chapter 12 Solutions
Financial Accounting
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 1PEACh. 12 - Prob. 1PEBCh. 12 - Prob. 2PEACh. 12 - Prob. 2PEBCh. 12 - Prob. 3PEACh. 12 - Prob. 3PEBCh. 12 - Prob. 4PEACh. 12 - Prob. 4PEBCh. 12 - Prob. 5PEACh. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Prob. 6PEACh. 12 - Prob. 6PEBCh. 12 - Revenue per employee Niles and Cohen, CPAs earned...Ch. 12 - Prob. 7PEBCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 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. 16ECh. 12 - Statement of members equity, admitting new member...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Liquidating partnershipscapital deficiency Lewis,...Ch. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Statement of partnership liquidation After closing...Ch. 12 - Prob. 24ECh. 12 - Prob. 25ECh. 12 - Revenue per professional staff The accounting firm...Ch. 12 - Prob. 27ECh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Statement of partnership liquidation After the...Ch. 12 - Prob. 6PACh. 12 - Prob. 1PBCh. 12 - Prob. 2PBCh. 12 - Prob. 3PBCh. 12 - Prob. 4PBCh. 12 - Statement of partnership liquidation After the...Ch. 12 - On August 3, the firm of Chapelle, Rock, and Pryor...Ch. 12 - Prob. 1CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CP
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