Chapter 12 Karen Smith and Abby Jones formed a partnership, investing $250,000 and $125,000, respectively. Determine their participation in the year's net income of $420,000 under each of the following independent assumptions. Please show your calculations. a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 4% allowed on original investments and the remainder divided in the ratio of 4:1. I

Chapter 12 Karen Smith and Abby Jones formed a partnership, investing $250,000 and $125,000, respectively. Determine their participation in the year's net income of $420,000 under each of the following independent assumptions. Please show your calculations. a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 4% allowed on original investments and the remainder divided in the ratio of 4:1. I

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 44P

See similar textbooks

Similar questions

Q1 Let us assume that Mr. Amir starts a business called Amir Enterprises on 1st January, 2021 and invests cash of RO. 20,000 as his capital. Amir Enterprise’s purchases machinery worth RO. 1,000 paid 35% in cash and remaining on credit. The company purchased goods worth RO. 5,000. Paid RO. 2,000 cash and balance on credit The company made a sale of RO. 2800 (cost being RO 3000) on credit basis The company took loan of RO. 10,000 from Bank Muscat . Mr. Amir withdrew RO. 1,000 from the business for his personal use You need to record the above transactions in an equation form. Q2Select any five financial transactions of your choice and make journal entries for the same.
I am going to name a couple of statements and terms. I need to know if they are Proprietorship, Partnership, or Corporation.1) Bronson Company presents a statement of retained earnings in its financial statements at year end2)Jean Johnson's home health care business doesn't have liability separate from herself3)Grand Canyon Company's Retained Earnings balance is 5 million4)Michael Johnson and Joaquin Nunoz each invested $10,000 in their computer consulting business, and received shares of the company's stock in exchange for their investments5)Crown Candy Company presents statement of owner's capital in its annual financial statement.6)Johnson, Capital7) Common Stock8) Statement of capital containing two capital accounts9) Par Value10) Stockholder's Equity11) Partners' Capital, December 3112) Statement of capital containing one capital account13) Retained Earnings14) Jones, Drawings15) Additional Paid-in-Capital
Course Name: Advanced Accounting Problem-1 )Ram and Shyam undertook jointly to build a house for a company at an agreed price of BDT 60,000, payable BDT 45,000 in cash and the balance in fully paid shares of the new company. A Joint Banking Account was opened in their names into which Ram paid BDT 15,000 and Shyam paid BDT 10,000. Profit sharing ratio between Ram and Shyam was 3:2. From the following transactions, prepare Joint Venture Account, Joint Bank Account and the Venturers Personal Account closing the venture: Materials purchased BDT 20,000; Wages paid BDT 15,000; Materials supplied from Stock by Ram BDT 3,000 and Shyam BDT 2,500 respectively. Architect’s fees BDT 1,000 was paid by Shyam. The joint venture was closed by Ram taking up all the shares of the company at an agreed valuation of BDT 12,000 and Shyam taking up the stock of surplus materials at an agreed valuation of BDT 1,500. The contract was duly completed and the price was received. Prepare Joint Venture Account,…
Based on the description I need to know if each example is a Proprietorship, Partnership, or Corporation.1) Bronson company presents a statement of Retained Earnings in its financial statements at year end.2) Jean Johnson’s home health care business does not have liability in its financial statement at year end3) Grand Canyon Company’s Retained Earnings balance is 5 million4) Crown Candy Company presents a statement of owner’s capital in its annual financial statement5) Statement of capital containing two capital accounts6) Par Value7) Stockholders Equity8) Partners’ capital, December 319) Statement of capital containing one capital account10) Retained Earnings11) Jones, Drawings12) Additional Paid in Capital
4. Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity. The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues ___________ of common stock with $1.00 par value. (Show Calculation) The land has been appraised at a market value of ______________ (Show Calculation) Please refer to table below for land value under the category Name # of shares issued Value of land A, P, I, E, V 300,000 $1,200,000
Make a Ledger in this problem Assume that on December 2, 2020. Mr. David Started DB Accounting Firm in Tagbina with the following assets as initial investments: PARTICULARS Cash 15,000 Computers 40,000 Furniture 50,000 Supplies 10,000 December 02 The business was registered with DTI, BIR, and Mayor’s permit spending P300, P500, and P1,200, respectively. 05 Acquired printer amounting to P10,000 for cash 15 Received electricity bill used by the business, P600. 15 Acquired computer chairs and tables on account, P10,000 payable within five days 20 Issued 3 months promissory note amounting to 10,000 to settle the obligation for acquiring computer chairs 21 Mr. David withdrew P1,000 for personal use. 23 Used supplies amounting to 8,000 26 Collected P50,000 for audit service to client 28 Billed P80,000 to the client for tax consultancy performed. 29 Transportation expense incurred and paid, P2,000 30 Provided 10% allowance for depreciation for the use of office equipment and…
Dean Winchester opened Ghost Cleaners on June 1, 2021. He is the sole owner of the corporation.During June, the following transactions were completed by Dean.1-Jun Invested $65,000 in exchange for common stock in Ghost Cleaners, Inc.1-Jun Purchased a used van for $12,000, paying $3,000 cash and the taking out a note payable for the rest.He plans to pay off the remaining balance on the van by June 1, 2022. The note has a 10% APRwith interest being payable at the end of every month. No principle payments are due until August 1, 2021.1-Jun Paid $1,800 cash on a 12-month insurance policy effective June 1, 2021.1-Jun Hired his brother, Sam, to help with the corporation. He will be paid $1,000 per month for now.5-Jun Purchased cleaning supplies for $1,500 on account.7-Jun Billed a client, F. Crowley, for services performed on June 7 in the amount of $3,000.8-Jun Paid $100 for gasoline for the van.12-Jun Paid $200 for maintenance on the van.15-Jun Incurred wages expense of $2,000.16-Jun…
Dean Winchester opened Ghost Cleaners on June 1, 2021. He is the sole owner of the corporation.During June, the following transactions were completed by Dean.1-Jun Invested $65,000 in exchange for common stock in Ghost Cleaners, Inc.1-Jun Purchased a used van for $12,000, paying $3,000 cash and the taking out a note payable for the rest.He plans to pay off the remaining balance on the van by June 1, 2022. The note has a 10% APRwith interest being payable at the end of every month. No principle payments are due until August 1, 2021.1-Jun Paid $1,800 cash on a 12-month insurance policy effective June 1, 2021.1-Jun Hired his brother, Sam, to help with the corporation. He will be paid $1,000 per month for now.5-Jun Purchased cleaning supplies for $1,500 on account.7-Jun Billed a client, F. Crowley, for services performed on June 7 in the amount of $3,000.8-Jun Paid $100 for gasoline for the van.12-Jun Paid $200 for maintenance on the van.15-Jun Incurred wages expense of $2,000.16-Jun…
Dean Winchester opened Ghost Cleaners on June 1, 2021. He is the sole owner of the corporation.During June, the following transactions were completed by Dean.1-Jun Invested $65,000 in exchange for common stock in Ghost Cleaners, Inc.1-Jun Purchased a used van for $12,000, paying $3,000 cash and the taking out a note payable for the rest.He plans to pay off the remaining balance on the van by June 1, 2022. The note has a 10% APRwith interest being payable at the end of every month. No principle payments are due until August 1, 2021.1-Jun Paid $1,800 cash on a 12-month insurance policy effective June 1, 2021.1-Jun Hired his brother, Sam, to help with the corporation. He will be paid $1,000 per month for now.5-Jun Purchased cleaning supplies for $1,500 on account.7-Jun Billed a client, F. Crowley, for services performed on June 7 in the amount of $3,000.8-Jun Paid $100 for gasoline for the van.12-Jun Paid $200 for maintenance on the van.15-Jun Incurred wages expense of $2,000.16-Jun…
hey I need help figuring out the numbers for these accounting homework assignments. Clint M. Invests $30,000. Into Merle company. The effect to Liabilities would be: ( Type your numeric number) Clint M. Invests $30,000 into Merle Company. The effect to Equity would be: (Type your numeric number) Merle company purchases s piece of equipment for $5,000 on account. The effect to Assets would be: (Type your numeric answer) Merle company purchases a piece of equipment for $5,000. The effect to Liabilities would be: (Type your numeric answer) Merle Company purchases a piece of equipment for $5,000 on account. The effect to Equit would be: (type your numeric answer)
The following business transactions of Mrs.Emma Blake, a sole trader. May 2021 (1) Capital invested as cash RO 80,000 to start up the business (5) Paid RO 24000 in cash to Purchase Factory (7) Purchase of goods on credit for RO 30000 and 34500 on cash from Kalood trading (8) Sale of goods RO 39700 on credit to Qaboos trading and for cash RO 45400 (9) Paid RO 26800 liability to the Kalood trading (11) Paid advertisement of RO 3570 (17) Paid salaries of RO 2530 (16) Paid rent RO 375 for the house of the sole trader (28) Collection of accounts receivable RO 27950 from Qaboostrading My question is, what will the following answers to the questions below? a. Journal entries b. Post ledger accounts c. Trail balances
PROBLEM 3 In January 2018, Nick Marasigan and Dems Asacta agreed to produce and sell chocolate candies. Marasigan contributed P2,400,000 in cash to the business. Asacta contributed the building and equipment, valued at P2,.200,000 and PI,400,000, respectively.The partnership had profits of P840,000 during 2018 but was less successful during 2019, when profit was only P400,000. Required . Prepare the journal entry to record the investment of both partners in the partnership. Determine the share of profit for each partner in 2018 and 2019 under each of the following conditions: 2.