ABC Partnership decided to admit Dan who invested P100,000 for a 20% interest. The effect of this transaction is a/an O a transfer of capital only increase in capital with no corresponding increase in assets. decrease in assets, decrease in capital an increase in assets and an increase in capital
Q: Which of the following statements about finance, accounting, and financial management is most…
A: Accounting is the procedure of recording the business transactions in the books of accounts. It has…
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On…
A: An Income summary is a summary of Income earned and expenses incurred during a particular period.
Q: Grey Grig Ltd Trial Balance as at 30 June 2019 Particulars Equipment rental Insurance Lighting and…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: Maricel Santos sells products from a direct selling company. She receives 10% commission for her…
A: Sales commission are paid to sales persons. This is paid as per the agreed upon commission rates.
Q: Given the Actual Demand from January to June of 2021, along with the forecasts based on three (3)…
A: Forecasting is a process of predicting the future demand based on the available previous demand…
Q: Computing Impairment of Patent In January 2017, Idea Company purchased a patent for a new consumer…
A: Introduction: Amortization is an accounting technique that is used to reduce the market price of a…
Q: Brown Sporting Goods, inc. buys baseball at $10 per dozen from its wholesales. Brown buys 1,600…
A: economic order quantity is the point where there is minimum cost incurred for for purchasing the…
Q: On April 2, 2015, Montana Mining Co. pays $4,170,260 for an ore deposit containing 1,438,000 tons.…
A: Depletion expense of mineral deposit $4170260 / 1438000 × 167800 = $486627 Depletion expense…
Q: The following are the non-strategic investment transactions of Wiki Garden Tool Inc. Assume each…
A: Journal is the recording of financial transactions using dual entity concept and in chronological…
Q: Three year 8% bonds of SR 100,000 issued on Jan. 1, 2007, are recalled at 105 on Dec. 31, 2008.…
A:
Q: A corporation sold 9,500 shares of its $10 par value common stock at a cash price of $11 per share.…
A: >Issuance of common stock is one of the Financing activity from which the corporation gets Cash…
Q: Leery Manufacturing produces a gameboard called the Maze. The company has recently established a…
A: Variance refers to a divergence from the predetermined rates, expressed ultimately in money value,…
Q: earned in previous chapters. Yc art 5 is optional. rom part 2, post the entries to Credit 0✔ 1,705 ✓…
A: Closing entry refers to the journal entry which is recorded at the end of the fiscal year or the…
Q: sent Rover Ltd has a year-end of 30 June 2022. The accountant has prepared the following schedule…
A: The accounting should be accordings with the generally accepted Accounting principles and…
Q: Roc Corporation experienced the following transactions: • Borrowed $5,000 from the bank. ● Completed…
A: Introduction: In accrual system of accounting, all income and expenses which are related to the…
Q: Accounting Sales=800 Sales returns= 100 Salary expenses= 80 Rent expenses= 50 Cost of good sold…
A: The closing entries are prepared to close the temporary accounts of the business at year end. The…
Q: 4/2 Purchased a company automobile for $32,000, with a cash down payment of $1,000 and the remaining…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: Lucas Company employs 10 factory workers with wage rate of Php50 per hour under the 40-hour week…
A: Basic pay is php 50 per hour Overtime pay is 125℅ of basic pay = php 50 *125℅ =php 62.5 So overtime…
Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for portable game…
A: Inventory refers to the stock that the company has not sold yet or is kept for the resale purpose…
Q: On July 1, Hernandez, Inc. purchased merchandise for $2,500, with terms of 1/10, n/30. On July 5,…
A: Journal Entry: It is the method involved with making records of any exchanges either monetary or…
Q: The following table shows the effects of transactions 1 through 5 on the assets, liabilities, and…
A: Accounting equation is the basic equation which is used to prepare the financial statements of an…
Q: Accounts Receivable Analysis A company reports the following: Sales $192,720 Average accounts…
A: The accounts receivable turnover ratio indicates the efficiency of a company in collecting the…
Q: DATE 3 ustration, prepare a cost sheet of the Following data relating to the manufacture of Jeans:…
A: Standard Cost Sheet- Standard cost sheets are cost cards that help identify the number of materials,…
Q: On Oct 1, 20X1, ABC Company acquired an equipment for P102,000. Estimated residual value is P2,000…
A: Depreciation is the decrease/reduction in the value of asset due to its use, wear and tear. The…
Q: Suppose the credit terms offered to your firm by your suppliers are 2/10, net 30 days. Out of…
A: Credit terms 2/10, net 30 means customer will get a discount of 2%, if payment is made within 10…
Q: Tommy specks makers has two variety of specks has provided with relevant data. Speck 1: Selling…
A: Contribution margin per unit of an product can be find out by subtracting selling price with its…
Q: Question 39 If the selling price per unit is $10, the unit contribution margin is $5, and total…
A: Computation of Break even units: Break even units = Fixed cost / Unit contribution margin.
Q: .LO.4 (Cost accumulation) Barfield Mfg. Co. applies overhead to jobs at a rate of 140 percent of…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Caves Beach Tiles is reviewing a capital investment proposal. The initial cost of the project and…
A: Introduction: The average cost of buying your existing inventory is the initial cost of adding your…
Q: 9. Given the following information: Total assets Total liabilities $ $360,000,000 18,000,000…
A: Net asset value per share= (Total assets- total external liabilities) /total number of shares
Q: Prepare the income statement, the statement of owner’s equity and balance sheet as at December 31st,…
A: Income Statement Particular Income Service Revenue 430800 Total 430800 Less:…
Q: aman Zoom Ltd have 500 employees with an average salary of $3,000 per month. Their average age are…
A: Endowment Fund: It is an scheme of investment for a long period to earn the revenue on that…
Q: tion below using 2-5 sentences ONLY. 1.) Is it fair for small businesses (like a sari-s
A: Explanation of Concept:- Tax:- A tax is the compulsory payment which is imposed by the government…
Q: ABC Corp uses the straight line method to depreciate a machine purchased on Jan 1, 20X1 for P20,000.…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: se fill in additional questions 1) A job order shall be billed to the customer anytime within the…
A: A job order can be defined as the written instruction provided by the customer for the goods or…
Q: Big Co. would like to buy Small Co. for a 30% control premium. Currently Big Co.’s stock price is…
A: EPS stands for "Earning per share" and the formula of the same is EPS=Total Earnings/Outstanding…
Q: Accountants for Morston, Inc. have assembled the following data for the year ended December 31,…
A: Cash flow statements includes: Cash flows from Operating activities Cash flows from Investing…
Q: Use the following to answer the four questions below On January 17, 2022, Seller Company sold to…
A: Payment terms with 4/10 , n/30 it means a discount of 4% will be given if payment is made by buyer…
Q: You and your spouse are in good health and have reasonably secure careers. You make about $75,000…
A: The family need approach determines the amount of life insurance needed to cover the needs of the…
Q: James Corporation earned net income of $90,000 this year. The company began the year with 600 shares…
A: Theory part: EPS: Full form of EPS is Earnings per share. This ratio tells the profit earned on each…
Q: based on the above exercice - On the basis of the data provided at question 6, calculate your…
A: Levered IRR is the Internal Rate of return calculated on the basis of levered free after tax cash…
Q: The Collins Company uses a job-order costing system and applies manufacturing overhead cost to jobs…
A: Predetermined overhead rate =200000/160,000 = 1.25 General Journal entries: a. Raw materials…
Q: following information is nt of Star incat November 30, 20 year-end. • Income from continuing…
A: Financial Statement of Star Inc,November 30,2015…
Q: ABC Company acquired 30,000 shares out of XYZ Company's 100,000 outstanding share on January 1,2020…
A: When one company purchases the shares of another company then the profit and loss earned by the…
Q: Age Interval Not due 1-30 days past due Est. Percentage Uncollectible Balance $63,000 2% 7,100 5%
A: Formula: Estimated Uncollectible amount = Balance amount x Estimated percentage uncollectible.…
Q: A sports equipment company issued a $6 cumulative preferred stock issue. In 2010 the firm's board of…
A: Cumulative preference stock holders has the right to get the dividend in arrears and the current…
Q: Q6 (a): A manufacturer has two departments; knitting and finishing. This question focuses on…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candies under the…
A: Given: January 2013, Edi Thomas and George Lopez started company T&L chocolates. Thomas…
Q: What is the amount of loan extended to MAPCD Co
A: An extended loan means when the amount of the loan is increased by the lender of the loan. the note…
Q: Westwood paid $245,000 in cash. Record the purchase in the journal, identifying each lot's cost in a…
A: In the journal entry, the amount of cash paid would be allocated to each lot with respect to their…
Step by step
Solved in 2 steps
- The following are independent events: a. A partnership is preparing to become a corporation and sell stock to the public. At this time, it decides to switch from accelerated to straight-line depreciation. b. A company has been debiting half its advertising costs to an intangible asset account and amortizing these costs over 3 years. c. A company has been using accelerated depreciation. It now estimates that the pattern of benefits to be received in the future will be equal each period, so it decides to change to the straight-line depreciation method. d. A company has been using straight-line depreciation for its property, plant, and equipment. It is now buying a new type of machine and elects to use accelerated depreciation on the new machine. e. A company switches from capitalizing certain expenditures to expensing them due to the issuance of an Accounting Standards Update that makes capitalization of these expenditures no longer generally accepted. Required: Identify the correct accounting treatment for the changes (if any) related to the preceding events.okuto and Kuroo formed a partnership and agreed to divide initial capital equally, even though Bokuto contributed P100,000 and Kuroo gave P86,000 in identifiable assets. Under the bonus approach to adjust capital accounts, Kuroo’s capital account should be credited for * a. 86,000 b. 100,000 c. 84,000 d. 93,000Partners Biore and Selishana each have P450,000 capital balance and share profits and losses in a 3:2 ratio. Cash equals P150,000, non-cash assets equal P1,500,000 and liabilities equal P750,000. If non-cash assets are sold for P1,000,000, the change in Selishana's capital account will be:
- W and X are partners who have agreed to admit Y, who will invest P15,000 for a 20 percent interest. The previous capital balances were P15,000 and P30,000 for W and X, respectively. W and X had shared profits and losses equally. What amount will be recorded in Y's Capital account? a. P6,000 credit b. P12,000 credit c. P15,000 credit d. P9,000 creditOn January 1, 2020, investor X has an investment in 20% of the investee’s outstanding shares at a cost of USD 370. The investee’s net assets on that date were USD 1,600 and there was no difference between the carrying amount and fair values of the investee’s assets and liabilities except for Land, which fair value was USD150 higher than the carrying amount. Investor X analyzed and concluded that it has significant influence over the investee. During 2020, the investee distributed dividend of USD 80 on April 1, reported net profit of USD 250 and recognized revaluation surplus of USD 30 on property, plant, and equipment. On December 31, 2020, the fair value of the investment held by investor X in the investee’s shares is USD 400. Required: 1. How much is the goodwill in investor A’s investment? 2. Prepare the journal entry(s) for investor A’s investment in the investee during 2020.A and B formed a partnership and agreed to divide initial capital equally even if A contributed P100,000 and B contributed P84,000 in identifiable assets. Under the bonus approach to adjust the capital accounts, what amount should be debited to B's unidentifiable assets?
- On January 1, 20x1, the partners of ABC Partnership decided to admit other investors. As a result, thepartnership was converted to a corporation. Relevant information follows:Carrying amounts Fair valuesCash20,000 20,000Receivables60,000 40,000Inventory80,000 70,000Equipment 540,000 670,000PayablesA, Capital (20%)B, Capital (30%)C, Capital (50%)50,000150,000200,000300,00050,000N/AN/AN/AThe corporation has an authorized capitalization of P2,000,000 divided into 200,000 ordinary shareswith par value of P10 per share. Shares were issued to the former partners based on their respectiveadjusted capital balances. How many shares did each of the partners receive? Show computation.The following are the capital balances of ABC Partnerships at August 1, 2016: Albert (40% P&L) $ 220,000 Bernard (40% P&L) 160,000 Conrad (20% P&L) 110,000 Dennis invests $ 270,000 in cash for a 30% ownership interest. The payment goes to the original partners. Revaluation/adjustment in asset is to be recognized upon Dennis admission. Required: How much adjustment in asset should be recorded and what is dennis beginning capital balance.Dellosa bought Longalong's interest in the Seechua and Longalong Partnership by a Php500,000 direct payment to Longalong. The capital balances before the sale were P240,000 and P360,000 respectively. What will be the amount in Dellosa's Capital account? a.) P300,000 b.)P360,000 c.)P480,000 d.)P500,000 e.)None of the above
- B and S are partners who are changing their profit and loss ratios from 60:40 to 45:55. At the date of change, the partners choose to revaluate assets with market value different from their book values. One asset revalued is land with a book value of $500,000 and a market value of $1,200,000. Two years after the profit and loss ratios are changed, the land is sold for $2,000,000. How much is the amount of change in S capital account at the date the land is sold?A. 320,000 B. 440,000 C. 600,000 D. 825,000PP, GG, and RR are partners with capital balances of P80,000, P200,000, and P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Grey decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by P20,000 and the value of land was increased by P50,000. PP and RR then agreed to pay GG P230,000 for his withdrawal from the partnership.Required: Assuming that revaluation increase and decrease was agreed by all partners recognized, prepare:1. the journal entry/ies to record the revaluation of assets.2. the journal entry to record GG’s withdrawal.ABC had capital balances of P40,000, P25,000 and P5,000 respectively with profit sharing ratio of 3:2:1 respectively. The partners decided to dissolve and liquidate. They sold all the non-cash assets for P37,000 cash. After settlement of all liabilities amounting to P12,000, they still have P28,000 cash left for distribution. What was the loss on the realization o the non-cash assets?
