Cheese Partners has decided to close the store. At the date of dosing, Cheese Partners had the following account balances: Capital $6,000 Cash 6,000 Inventory 15,000 Store fixtures 8,000 Accounts payable 22,000 A competitor agrees to buy the inventory and store fixtures for $18,000. Prepare the journal entries detailing the liquidation, assuming that partners Colette and Swarma are sharing profits on a 50:50 basis. If an amount box does not require an entry, leave it blank.
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- What is the journal entry Declan's Designs recorded to recognize the purchase of PPE in 2022? Question 6 options: Dr. PPE $10,0000 Cr. Cash $10,000 Dr. PPE $22,0000 Cr. Cash $22,000 Dr. PPE $12,0000 Cr. Cash $12,000 Dr. PPE $11,0000 Cr. Cash $11,000E 17-2 Liquidation—Journal entries After closing entries were made on December 31, 2016, the ledger of Mac, Nan, and Obe contained the following balances: Cash $39,000 Accounts payable $5,000 Inventory 16,000 Mac capital (40%) 15,000 Nan capital (30%) 8,000 Obe capital (30%) 27,000 Due to unsuccessful operations, the partners decide to liquidate the business. During January some of the inventory is sold at cost for $10,000, and on January 31, 2017, all available cash is distributed. It is not known if the remaining inventory items can be sold. Required Prepare all journal entries necessary to account for the transactions of the partnership during January 2017.20. The after-closing trial balances of the Brenda, Peter, and Timothy partnership at December 31, 2020included the following accounts and balances: Cash – P120,000; Accounts receivable, net – P140,000;Loanto Timothy – P20,000; Inventory – P200,000; Plant assets, net – P200,000; Trademarks – P20,000;Accounts Payable – P150,000; Notes Payable – P100,000; Loan from Peter – P10,000; Brenda, Capital(50%) – P170,000; Peter, Capital (30%) – P170,000; Timothy, Capital (20%) – P100,000. The partnershipis to be liquidated as soon as possible, and all available cash except for a P10,000 contingency balance isto be distributed at the end of each month prior to the time that all assets are converted into cash.DuringJanuary 2021, P100,000 was collected from accounts receivable, inventory items with a book value ofP80,000 were sold for P100,000, and available cash was distributed. During February 2021, Brendareceived plant assets with a book value of P60,000 and a fair value of P50,000 in partial…
- Problem #2 Lump-Sum Liquidation with Loss on Realization After several years of operations, the partnership of Concepcion, Macabata and Pedroso is to be liquidated. After making closing entries on March 31, 2011 the following accounts remained open: Account Balance Account Title Debit Credit Cash P 150,000 Non-cash Assets 2,600,000 Liabilities P 750,000 Concepcion, Capital 400,000 Macabata, Capital 600,000 Pedroso, Capital 1,000,000 The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.QUESTION 4 / Review Sunny Co purchased 20,000 shares in Peter Co on 1 August 2020 at a cost of $6.0 each. Transaction costs on the purchase amounted to $2,000. At the year-end 30 September 2021, these shares are now worth $7.50 each. What is the gain to be recognized for the year ended 30 Sep 2021 and where it will be recorded according to two cases: (1) Shares held for sales (2) Shares held to collect contractual cash flows and sell them.On May 3, 2004 Joe bids 96.2 on a 182-day $500,000 T-bill. Find the Present Value (PV), the Purchase Amount. Ⓒ A. $19,000 B. $481,000 C.$500,000
- owns 70% of Queen Ltd. (Queen). Parker and Queen both have December 31St year ends. On January 1. 2022, Queen had inventory in its warehouse which was purchased from Parker for $12,000 in 2021. This inventory was sold to an outside party during 2022. During 2022, Parker sold inventory to Queen for $50,000. 40% remained in Queen's warehouse at year end. Also, during 2022. Queen sold inventory to Parker for $25,000. 70% of this inventory remained in Parker's warehouse at year end. Both companies are subject to a tax rate of 40%. The gross profit percentage on sales is 30% for both companies. Parker uses the cost method to account for its Investment in Queen. The inventories of both companies as at December 31, 2022 were all sold to outsiders during 2023. There were no intercompany transactions during 2023. Prepare a schedule showing the realized and unrealized profits resulting from upstream transactions (i.e.. Queen selling to Parker) for 2022 and 2023. Your schedule should include both…1. Required information Skip to question [The following information applies to the questions displayed below.] Grandpa Clocks, Incorporated (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells a grandfather clock for $10,000 cash plus 4 percent sales tax. The clock had originally cost GCI $6,000. Assume GCI uses a perpetual inventory system. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign.)qw.15. Transactions for July, 2022 Batch 1 July 2 Purchased $2,000 of Inventory on account, terms 1/20, n/45. (Tax rate:13%) July 7 Sold to Zoe Financial Company on credit terms 2/15, n/30 $3,000. (Tax rate:13%) Batch 2 July 15 Paid salaries for 2 employees: Luo Jie, $1,300 cheque #10 and Zheng Rui, $1,600 cheque #15 July 17 Paid for the July 2 purchase on cheque #20. Batch Number: 001 Batch Description: Transaction Batch #1 Entry Number: 001 Entry Description: Date: Period: Source: GL - Account Number Account Description Debit Credit Journal Entry Totals Entry Number: 002 Entry Description: Date: Period: Source: GL - Account Number Account Description Debit Credit Journal Entry Totals Batch Totals Batch Number: 002 Batch Description: Transaction Batch #2 Entry Number: 001 Entry Description: Date: Period: Source: GL - Account Number Account Description Debit Credit Journal Entry Totals Entry Number: 002 Entry Description:…
- A L E Inventory 15000 A/R 20000 Prepaid rent 2000 Cash 100000 Building 10000 Payables 20000 Capital 110000 Retained earnings 17000 Total 147000 Total 147000 The company concluded a 6 month contract with customers for providing services, and required advance cash payment 60000$ for the whole contract amount. Customers fulfilled the requirement and paid the stated amount. Company received back the 60% of receivables, and paid out the payables' full amount. Purchased an equipment by the price 12000$, 50% was paid in cash. Obtained inventory by the price 60000$, and paid 80% in cash to suppliers. During the week 70%of inventory was realized with 70% markup. Customers paid 100% of the price in cash. The depreciation for the building per month was calculated as 500$, and for equipment 300$. Company accrued the following expenses: salaries 12000$, utilities 600$, profit tax 20%. At the end of the month company recognized the rent expenses (20%) and appropriate part…Q. In The Process of the Acquisition, Z Incorporation Paid In Cash the Following Expenses (5): Legal fees so, non Accounting fees 20,000 Travel exponses 5,000 Legal fees (SEC) 40, 000 Accounting fees (SEC) 10,000 SEC filing fees 15,000 Required: Prepare the journal entry to record the acquisition expenses please i need answer in tablesG.252. Required information Skip to question [The following information applies to the questions displayed below.] Brooks Company purchases debt investments as trading securities at a cost of $77,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $87,000. Brooks sells a portion of its trading securities (costing $38,500) for $41,000 cash. Analyze each transaction above by showing its effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction.