d) Prepare a statement of partner 's equity for 2019 1. Nita and Bona entrepreneurs, agreed to invest cash to put up a business selling signature bags. Theyagreed to share profits based on the legal provision. The following are the ledger postings for 2019:Bona, CapitalJan.2 300,000Mar.1 200,000Nina, CapitalJan. 2 500,000Nina, DrawingBona, Drawing30,000| Dec.31 ?30,000Oct.1 30,000 Dec. 31 ?Oct.1Nov.1 30,000Nov.1Dec.1?Dec.1?Loan Payable, NinaDec.15Income Summary50,000Dec.31 ?Dec. 31 200,000

A partnership seems to be a structure of two or more individuals who engage to conduct a legitimate…

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: Nina, Capital Jan. 2 500,000 Bona, Capital Jan.2 300,000 Mar.1 200,000 Nina, Drawing Oct.1 30,000 Dec. 31 Bona, Drawing 30,000 Dec.31 ? 30,000 Oct.1 Nov.1 30,000 Nov.1 Dec.1 ? Dec.1 ? Loan Payable, Nina Dec.15 Income Summary 50,000 Dec.31 ? Dec. 31 200,000

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: Nina, Capital Jan. 2 500,000 Bona, Capital Jan.2 300,000 Mar.1 200,000 Nina, Drawing Oct.1 30,000 Dec. 31 Bona, Drawing 30,000 Dec.31 ? 30,000 Oct.1 Nov.1 30,000 Nov.1 Dec.1 ? Dec.1 ? Loan Payable, Nina Dec.15 Income Summary 50,000 Dec.31 ? Dec. 31 200,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 55P

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Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. 4.Paid rent for period of October 4 to end of month, 3,000. 10.Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13.Purchased equipment on account, 10,500. 14.Purchased supplies for cash, 2,100. 15.Paid annual premiums on property and casualty insurance, 3,600. 15.Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21.Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24.Recorded jobs completed on account and sent invoices to customers, 14,150. 26.Received an invoice for truck expenses, to be paid in November, 700. 27.Paid utilities expense, 2,240. 27.Paid miscellaneous expenses, 1,100. Oct. 29. Received cash from customers on account, 7,600. 30.Paid wages of employees, 4,800. 31.Withdrew cash for personal use, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?
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Nita and Bona's 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
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