Please solve the below and provide explanation thank you 8. Mutt and Jeff are partners in a business sharing profit and loss 2:1. Their trialbalance as at March 31, 2000 was as followsWages and salariesOffice expensesProvision for bad debtsBad debtsLoan interestDiscount allowedCarriage outwardsPurchasesSalesStock at Mar 31 1999BankCreditorsDebtorsFixturesProv. for depn on fixturesBuildingProv. for depn on buildingLoanCapital - MuttJeffCurrent account - MuttJeffDrawings MuttJeffReturnsCarriage inwardsDiscount receivedCommission received$12,8509,4004,6508,0003,2402,350202,60063,45063,80034,00022,000150,0003,50012,50011,3003,5601,200$800282,50022,3506,60040,00095,000100,00050,0002,3002,0502,3004,500608,400 608,400The following additional information is also available :1. Jeff is to be paid a salary of $1,6502. Interest on capital is to be paid at 10%3. Interest on drawings is to be charged at 5%4. Commission received is owing by $5005. Provide for depreciation of fixtures 10% reducing balance, building 5% straight line6. The provision for bad debts is to be revised to 5% of debtors7. Office expenses $600, wages $550 are owing8. Stock at March 31, 2000 is $112,680Required: Prepare the set of final accounts for the year.

Balance Sheet A balance sheet provides you with a quick overview of your company's financial…

Answered: Please solve the below and provide…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 55P

See similar textbooks

Similar questions

The following is the statement of financial position of PQR sharing profits and losses in the ratio of 3:2:1 as on 31st Dec 2010 Liabilities RO Assets RO Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 25,800 200 6,000 78,000 110,000 Cash Debtor and Stock Furniture Computer Building Patents 8,000 42,000 15,000 10,000 30,000 5,000 110,000 They admit S into the partnership on the following terms: - 1. The value of computer reduced by 10% 2. A part of value of Patents for RO 1000 became useless and it has to be reduced. 3. Buildings to be revalued at RO 55,000 4. Furniture was depreciated by 10% 5. S shall bring RO 25,000 as capital for ¼ share of future profits a) Calculate New Profit Sharing Ratio and Sacrificing Ratio b) Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission. Answer: Revaluation Account…
You are considering two possible companies for investment purposes. The following data is available for each company. Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet method is 10%. The $230,000 in Other Expenses includes all company expenses except Bad Debt Expense. Company B: Bad debt estimation percentage using the income statement method is 6.5%, and the balance sheet method is 8%. The $140,000 in Other Expenses includes all company expenses except Bad Debt Expense. A. Compute the number of days sales in receivables ratio for each company for 2019 and interpret the results (round answers to nearest whole number). B. If Company A changed from the income statement method to the balance sheet method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). C. If Company B changed from the balance sheet method to the income statement method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). D. What benefits do each company gain by changing their method of bad debt estimation? E. Which company would you invest in and why? Provide supporting details.
The following is the balance sheet of P, Q and R who were sharing profits and losses in the proportion of 4:3:2 as on 31st March 2009 Liabilities RO Assets RO Capitals P Q R P’s Loan Provision for taxation Accounts Payables 80,000 45,000 35,000 7,000 3,000 56,000 226,000 Premises Fixtures and fittings Joint life policy Stock Accounts receivables Cash 85,000 20,000 10,000 68,000 40,000 3,000 226,000 Q decides to retire from the business due to her marriage. It is agreed that Commission accrued but not received RO 6,000 be brought into accounts Provision for taxation need not be maintained as there is no liability attached to it The surrender value of the joint life policy is RO 8,000 Premises is appreciated by RO 12,000 Fixtures and fitting and stock to be depreciated by 10% Goodwill of the entire firm be fixed at RO 21,600 and Q’s share if it be adjusted through the capital accounts of P and R…
On May 1, 20x1, the statement of financial position of Juan and Pablo appear below:Juan PabloCash 22,000 44,708Accounts receivable 469,072 1,135,780Inventories 240,070 520,204Land 1,206,000Building 856,534Furniture and fixtures 100,690 69,578Other assets 4,000 7,200Total assets 2,041,832 2,634,004Accounts payable 357,880 487,300Notes payable 400,000 690,000Juan, Capital 1,283,952Pablo, Capital 1,456,704Total liabilities and equity 2,041,832 2,634,004Juan and Pablo agreed to form a partnership contributing their respective assets and equities subject to thefollowing adjustments:a. Accounts receivable of P40,000 in Juan’s books and P70,000 in Pablo’s books are uncollectible.b. Inventories of P11,000 and P13,400 are worthless in Juan’s and Pablo’s respective books.c. Other assets of P4,000 and P7,200 in Juan’s and Pablo’s respective books are to be written off. 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000.…
On May 1, 20x1, the statement of financial position of Juan and Pablo appear below:Juan PabloCash 22,000 44,708Accounts receivable 469,072 1,135,780Inventories 240,070 520,204Land 1,206,000Building 856,534Furniture and fixtures 100,690 69,578Other assets 4,000 7,200Total assets 2,041,832 2,634,004Accounts payable 357,880 487,300Notes payable 400,000 690,000Juan, Capital 1,283,952Pablo, Capital 1,456,704Total liabilities and equity 2,041,832 2,634,004Juan and Pablo agreed to form a partnership contributing their respective assets and equities subject to thefollowing adjustments:a. Accounts receivable of P40,000 in Juan’s books and P70,000 in Pablo’s books are uncollectible.b. Inventories of P11,000 and P13,400 are worthless in Juan’s and Pablo’s respective books.c. Other assets of P4,000 and P7,200 in Juan’s and Pablo’s respective books are to be written off.Required:1. What are the adjusted capital balances of the partners after formation? 2. Pedro offered to join for a 20% interest in…
The following are relevant information pertaining to the results of the business operations for Maisarah Islamic Window for the year 2020: Income from Operations2600000Expenses from Operations1180000Indirect Income (Fee Based)300000Indirect Expenses260000The above profit from operation is prior to the distribution of profit to mudharabah depositors. The agreed profit sharing ratio between the Bank and mudharabah depositors is 60:40 respectively.Required:Assuming that the Separate Investment Account Method SIAM is used, calculate the net profit/loss to the Islamic Bank (Before Tax and Zakat)
5. The followings ate the information about Rainbow National Bank:Report of Income Tk.Interest income 1,250Interest expense 500Total assets 40,000Securities losses or gains 1,000Earning assets 30,000Total liabilities 30,000Taxes paid 1,000Shares of common stock outstanding 3,000Noninterest income 8,000Noninterest expense 6,000Provision for loan losses 2,500Calculate ROE, ROA, Net interest margin, Earnings per share, Net noninterest marginand Net operating margin.Alternative Scenarios:Suppose interest income, interest expenses, noninterest income, and noninterestexpenses each decline by 5 percent while all other revenue and expense items shown inthe preceding table remain unchanged. What will be happen to Rainbow ROE, ROA,and earnings per share?
S Man runs a small business, MANDLAS, from home. S Man does not keep proper accounting records. He needs to calculate the entity’s profit/loss and requests your assistance. You established the following: BALANCES AS AT 30 APRIL 2013 2012 R R Furniture at carrying value 22 950 25 500 Tools and equipment at carrying value 46 350 51 500 Inventory: Trading 10 500 15 200 Investment in shares - Solution Pty (Ltd) 25 000 - Bank (favourable) - 12 480 Bank (overdraft) 8 500 - Long-term loan 15 500 19 000 Creditors 9 520 9 520 Credit card 5 380 - 32 Days Notice Deposit 21 000 - Prepaid expenses 1 850 - Accrued income 2 430 - Income received in advance 3 800 5 000 Accrued expenses 1 600 - 1300 Additional information a) S Man withdrew R20 000 during the 2013 year for own use. b) During the 2013 financial year S Man deposited R30 000 from his personal bank account into the business bank account. c) The interest on the long-term loan for the 2013 financial…
1. The following information is available from the records of X, Corporation: Year 1Income(loss)before bad debts write off and recovery P100,000Bad debts write off P25,000 Year 2 Income(loss)before bad debts write off and recovery (P20,000)Bad debts write off P10,000Previous year’s write off, recover this year P30,000 Year 3Income(loss)before bad debts write off and recovery P50,000Bad debts write off P5,000Previous year’s write off, recover this year P8,000 For year 3 the total taxable income should be?
Please help me to understand this by writing your solution in good accounting form, thank you! PROBLEM: The following data were taken from the statement of affairs of ROBINSONS Corp.: Assets pledged for fully secured liabilities (current fairvalue, $75,000) $90,000 Assets pledged for partially secured liabilities (currentfair value $52,000) $74,000 Free assets (current fair value, $40,000) $70,000 Unsecured liabilities with priority $7,000 Fully secured liabilities $30,000 Partially secured liabilities $60,000 Unsecured liabilities without priority $112,000 *The amount that will be paid to creditors with priority is:a. 7,000 b. 6,000 c. 7,500 d. 6,200 *The amount to be paid fully secured creditors is:a. 30,000 b. 32,000 c. 20,000 d. 35,000 *The amount to be paid to partially secured creditors is:a. 52,700 b. 57,200 c. 56,200 d. 57,000 *The amount to be paid to unsecured creditors:a. 78,200 b. 70,800 c. 72,000 d. 72,800
Compute for the Income Tax for the below data: MRS. MR. Gross Sales of the Business P4,000,000 Cost of Sales and expenses of the business 1,900,000 Gross Receipts from profession P300,000 Cost and Expenses in the practice of profession 120,000
On 12/31/X4, Zoom, LLC, reported a $49,500 loss on its books. The items included in the loss computation were $23,000 in sales revenue, $8,000 in qualified dividends, $15,000 in cost of goods sold, $43,000 in charitable contributions, $13,000 in employee wages, and $9,500 of rent expense. How much ordinary business income (loss) will Zoom report on its X4 return? Multiple Choice ($8,000) ($14,500) ($49,500) ($84,500)

SEE MORE QUESTIONS

Recommended textbooks for you

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS