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: Bona, Capital Jan.2 300,000 Mar.1 200,000 Nina, Capital Jan. 2 500,000 Bona, Drawing 30,000 Dec.31 ? 30,000 Nina, Drawing Oct.1 30,000 Dec. 31 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 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 requires 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

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: Bona, Capital Jan.2 300,000 Mar.1 200,000 Nina, Capital Jan. 2 500,000 Bona, Drawing 30,000 Dec.31 ? 30,000 Nina, Drawing Oct.1 30,000 Dec. 31 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 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 requires 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

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.
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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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