Teoh, Meng and Chen are partners sharing profits and losses equally. The business performs has the following Statement of Financial Position as at 31 December 2021. Accumulated Non-current assets Net book value (RM) 168,000 158,550 42,000 368,550 depreciation (RM) Cost (RM Furniture and fittings 203,000 238,000 73,500 (35,000) (79,450) (31,500) (145,950) Motor vehicles Office equipment 514,500 Current assets Cash and bank Debtors 127,050 168,000 Other receivables 134,400 429,450 Current liabilities Accrued expenses Creditors 25,900 121,100 (147.000) Working capital Net assets 282,450 651,000 Financed by: Capital -Teoh 210,000 -Meng -Chen 178,500 262,500 651,000 Total capital Teoh retired at 31 December 2021. The followings were the additional information: • Furniture and fittings RM189,000 Motor vehicle RM168,000 • Office equipment RM53,550 Goodwill was determined at RM84,000. • Teoh would take over the office equipment in part payment of the amount due • Meng and Chen would pay RM105,000 and RM63,000 respectively to the business for additional capital Required: Prepare the ledger of revaluation account, bank account and capital accounts.
Q: What direct materials are used in the production of gummy bears?
A: Dm termed as Direct materials which refers to those materials that are used in the making or manufac...
Q: On January 1, a company issued and sold a $430,000, 5%, 10-year bond payable, and received proceeds ...
A: GIVEN On January 1, a company issued and sold a $430,000, 5%, 10-year bond payable, and received p...
Q: In retail we are always adjusting our operations to ensure financial goals are met. Aside from adjus...
A: Introduction Adjustments is carried out to show the accurate picture of financial statement at the e...
Q: Record the following transactions in the General Journal of KBC Decorating Co., making no of the fol...
A: Journal Entries in the book of KBC Decorating Co. S. no. Date Particulars Debit ($) Credit($) ...
Q: Nance Company sold inventory on October 1, 2020 to a foreign customer for 850,000 units of foreign c...
A: A contract under which currencies of two different nations are agreed to exchange at a specified rat...
Q: What type of projects does the Payback method favor?
A: Payback method: It implies to a method of evaluating investment projects by computing the time, it t...
Q: 1,000 room hotel for P24,000,000. Among othe lowing:1.Ten percent mobilization fee (deductible e wit...
A: Contract accounting is acknowledged as the accounting method utilized in order to record the revenue...
Q: Profit and loss data for A Company and its branch for 2018 + follows: Home office Branch Sales 365,0...
A: Closing inventory of branch from HO at cost be C C + 20% x C = 30000 Cost =25000 Total inventory o...
Q: Creative Stuff, Inc. produced 10,000 units of output but sold only 9,000 of the units produced. Incl...
A: Total Revenue- Total revenue is the total amount of money earned by a company from the sale of goods...
Q: December 31, 2021 at 96. Interest is payable annually White Company issued P8,000,000 12% bonds paya...
A: Solution A journal entry is used to record a business transaction in the accounting records of a bus...
Q: For each of the following inventory errors occurring in 2021, determine the effect of the error on 2...
A: The entire amount your organization spent as a cost directly tied to the selling of merchandise is k...
Q: Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell ...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: [The following information applies to the questions displayed below.] Iguana, Inc., manufactures bam...
A: The question is based on the concept of Cost Accounting.
Q: Peterson Corporation is considering implementing a JIT production system. The new system would reduc...
A: Just-In-Time production (JIT) system is a managerial approach in which minimum inventories are kept ...
Q: Month Units Sold Total Cost $ 6,570 $ 7,14O $ 9,300 $ 4,500 JanuarY 1,020 February 1,920 March 2,640...
A: Solution: Under high low method, cost at highest point of activity and cost at lowest point of activ...
Q: Tina taxpayer makes $75000 a year. what are her average and marginal tax rates if she required to p...
A: In order to determine the average tax rate, the total tax obligation is required to be divided by th...
Q: Which of the following tax remedies is both beneficial to the government and taxpayer? a. Tax lien ...
A: In the era of growing global economy and complexities of tax laws, tax payers quite often tends to m...
Q: Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorpora...
A: A Recognized gain occurs when an investment or object is sold for a higher price than when it was p...
Q: Keira purchased several pieces of equipment (all 7-year property) during 2021 for $2.100.000. She ue...
A: * As per Bartleby policy, if the question is unrelated then answer first only. Section 179 Expense...
Q: n April 12, Hong Company agrees to accept a 60-day, 8%, $7,800 note from Indigo Company to extend th...
A: Notes payable is debited by $7,800 since notes payable is a liability and a decrease in liability is...
Q: Item Nos. 20 and 21 are based on the following information: In its first year of operations, the par...
A: Partnership Account - A partnership is a mutual agreement enter into by two or more entities for the...
Q: Southland Company Is preparing a cash budget for August. The company has $18,100 cash at the beginni...
A: The cash budget is prepared to estimate the requirements for cash during the period.
Q: Accounting Required information [The following information applies to the questions displayed below....
A: Revenues are the total earnings of the entity made during a year which is credited in the statement ...
Q: Aaron Corporation, which has only one product, has provided the following data concerning its most r...
A: Under absorption costing, Variable selling and administrative expense and Fixed selling and administ...
Q: Jones Manufacturing Inc. sponsored a defined benefit pension plan effective 1 January 20X7. The comp...
A: The pension plan is the retirement benefit plan for employees’ retirement. All the contributions are...
Q: leased are payable at the end of each year, beginning December 31 cost was P800,000. The implicit ra...
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get...
Q: i need the answer quickly
A: Introduction: Manufacturing overhead includes all secondary expenditures encountered throughout the ...
Q: Units Beginning inventory of 4,000 units that are 100 percent complete for materials and 22 percent ...
A: Weighted average method is one of the method of process costing, where equivalent units are being ca...
Q: Allan buys a cellphone costing Php. 13,000. What is its value after 4 years if the rate of depreciat...
A: The question is related to the Depreciation Accounting and of reducing balance method of depreciatio...
Q: Please send to my email add: Mhardzpurple@yahoo.com Name Date Email Add: CHAPTER 1 TEN-MINUTE QUIZ C...
A: The question is related to the Basic of Financial Reporting. Since you have asked multiple question...
Q: A manufacturing company plans to replace an existing production line with a newer and more energy ef...
A: Savings in expenses refers to the amount by which a particular expense or a set of expenses are redu...
Q: achel's health insurance policy has a monthly premium of $500. She has a $1,000 nnual deductible, af...
A: Out of pocket cost means cost which are direct payment of money and subsequently no reimbursement fr...
Q: Three of the following are requisites of an obligation. Which is the exception? Efficient cause Pres...
A: The four essential elements of an obligation are: an Active Subject, a Passive Subject, The Prestati...
Q: at 95. T
A: The journal entries and bonds payable as,
Q: Date Accounts title & Explanations Debit S Credit S Sep-01 Cash 20000 Owner's Capital 20000 Sep-02 R...
A: Journal entry - It refers to the process where the business transactions are recorded in the books o...
Q: Question text Net interest cost is a component of pension expense under IFRS. How is net interest co...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: is 2.50%. In the future, the rate will reset to 250 basis points above the LIBOR. There are no rate ...
A: Monthly interest rate (2.50% / 12) 0.21% (approx.) Number of years of the loan (30 years * 12 mont...
Q: A company has established 6 pounds of Materlal J at $3 per pound as the standard for the material in...
A: Solution: Direct materials price variance is the variance in standard cost of materials and actual c...
Q: Rasheed works for Company A, earning $350,000 in salary during 2021. Assuming he is single and has n...
A: The Federal Insurance Contributions Act (FICA) is a United States law that requires employers to con...
Q: The current assets and liabilities sections of the comparative balance sheet of Wildhorse Inc., a pr...
A: Cash flow from Operating Activities - Cash flow from Operating Activities includes all the operation...
Q: Following are the individual financial statements for Gibson and Davis for the year ending December ...
A: A consolidated income statement reports expenses,revenue and income of a parent company and those of...
Q: why Chief Financial Officer must have a background on the following subjects: Financial Accounting a...
A: why Chief Financial Officer must have a background on the following subjects: Financial Accounti...
Q: d) Assuming sales equal to the normal capacity calculated in a) above, prepare a contribution margin...
A: Contribution margin income statement is the statement of income and loss which is prepared by the co...
Q: On January 1, 2016, Saul Company issued convertible bonds with a face amount of P 5,000,000 for P 6,...
A: Solution Bond is a fixed obligation to pay that is issued by a corporation or government entity to i...
Q: Mr. S sold a pig named Peachy to Ms. B for P5,000. No condition or period was contemplated. After th...
A: Mr. S sold the pig to Ms. B without any condition. After the completion of sale but before delivery ...
Q: Equivalent Units of Production The Converting Department of Comfy Touch Towel and Tissue Company ha...
A: Equivalent units can be described as total units produced if no work in process is available.
Q: The carrying on of a business of a continuing nature is essential to constitute a partnership.
A: Organization: Organization is an entity which can be in the form of partnership, company, firm or so...
Q: Which of the following is not a common difference between net business income on the books (followin...
A: * As per Bartleby policy, if question are unrelated then answer first only. As per IRS , business me...
Q: Determine the annual cost of ownership for a vehicle that has the following cos Use an interest rate...
A: Cost of ownership includes all different cost incurred at various time from initial payment to other...
Q: Oriole Company purchased equipment that cost $2595000 on January 1, 2020. The entire cost was record...
A: Net Income is the amount of income that is calculated after deducting all indirect expenses and addi...
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively.The following was their balance sheet as at 31 December 2018: Cost Depreciation. NBVNon-Current Assets $ $ $Premises 42,000 32,000 10,000Motor Vehicles 14,000 10,000 4,000Furniture and Fittings 6,000 2,000 4,000 62,000 44,000 18,000Current Assets Inventory 24,000Trade Receivables 6,800 30,800 48,800Capital and LiabilitiesCapitals: Mary 7,000 Jane…John and Peter are in partnership sharing profits and losses in the ratio 3/5: 2/5, respectively.The following is their trial balance as of 31 December 2007.Dr Cr$ $Buildings (cost $105,000) 80,000Fixtures at cost 4,100Provision for depreciation: Fixtures 2,100Debtors 30,700Creditors 13,295Cash at bank 3,065Stock at 01 January 2008 31,370Sales 181,555.50Purchases 105,000Carriage outwards 1,705Discounts allowed 310Loan interest: M. Money 1,950Office expenses 2,380Salaries and wages 28,904.50Bad debts 816Provision for doubtful debts 700Loan from M. Money 32,500Capitals: Shoes 50,000Socks 37,500Current accounts: Shoes 2,050Socks 600Drawings: Shoes 15900Book 14,100320,300.5 320,300.5i. Stock, 31 December 2008, $35,105ii. Expenses to be accrued: Office Expenses $107.50; Wages $360iii. Depreciate fixtures 15 percent on reducing balance basis, buildings $2,500iv. Reduce provision for doubtful debts to $625v. Partnership salary: $15,000 to Shoes. Not yet enteredvi. Interest on drawings:…The information given below was extracted from the accounting records of Total Limited, a partnership business with Glen and Murry as partners. Information:Extract from the ledger of Total Limited on 30 June 2021 R Capital: Glen 400 000 Capital: Murry 300 000 Current a/c: Glen (01 July 2020) 45 000 CR Current a/c: Murry (01 July 2020) 42 000 DR Drawings: Glen 95 000 Drawings: Murry 110 000 The following must be taken into account:1. On 30 June 2021 the Profit and Loss account reflected a net profit of R940 000.2. Partners are entitled to interest at 14% p.a. on their capital balances.Note: Glen decreased his capital contribution by R90 000 on 01 July 2020.This capital decrease has been recorded.3. Partners are entitled to the following monthly salaries:• Glen R13 000 for the first ten months of the financial year and R15 000• for the next two months.• Murry R10 000 per month throughout the year.4. Partner Murry is entitled to a bonus equal to 10% of the…
- AA and BB are partners engaged in a manufacturing business. Transactions affecting the partners’ capital accounts in 2022 are as follows: AA BB Debit Credit Debit Credit Beg. Balance P250,000 P350,000 April 1 150,000 100,000 June 30 125,000 250,000 September 1 225,000 300,000 October 1 350,000 200,000 The income summary has a debit balance of P225,000. Agreement between AA and BB are as follows: Interest on average capital at 8%. Salaries of P125,000 and P175,000 are given to AA and BB, respectively. Bonus to BB at 25% of net income after deducting interest and salaries but before deducting bonus. Balance is to be divided equally. How much is the net increase (decrease) in BB’s capital account in 2022?Hosea, Riziki and Zarika are trading as Horizon enterprises. They share profits and losses in the ratio of 2:2:1 respectively. The following is the statement of comprehensive income for the partnership for the year ended 31 December 2018: Shs. Shs. Sales Opening stock Purchases Closing stock Gross profit Less: Salaries Repairs and maintenance Interest Goodwill Depreciation Mortgage repayment Insurance Auditee Legal fee Equipment purchase Rent and rates Net profit 300,000 4,000,000 (600,000) 900,000 100,000 480,000 198,000 142,000 200,000 384,220 315,780 100,000 200,000 18,0000 8,000,000 (3700,000) 4,300,000 (3,200,000) 1,100,000 Additional information 1. Opening inventory and closing inventory were overvalued by 30%. 2. Included in interest expense is interest on capital to partners of Sh. 80,000. This amount was to be shared in the profit sharing ratio. The balance of interest relates to an…Shoes and Socks are in partnership sharing profits and losses in the ratio 3/5: 2/5, respectively. The following is their trial balance as of 31 December 2008.DrCr$$Buildings (cost $105,000)80,000Fixtures at cost4,100Provision for depreciation: Fixtures2,100Debtors30,700Creditors13,295Cash at bank3,065Stock at 01 January 200831,370Sales181,555.50Purchases105,000Carriage outwards1,705Discounts allowed310Loan interest: M. Money1,950Office expenses2,380Salaries and wages28,904.50Bad debts816Provision for doubtful debts700Loan from M. Money32,500Capitals: Shoes50,000Socks37,500Current accounts: Shoes2,050Socks600Drawings: Shoes15900Book14,100320,300.5320,300.5i. Stock, 31 December 2008, $35,105ii. Expenses to be accrued: Office Expenses $107.50; Wages $360iii. Depreciate fixtures 15 percent on reducing balance basis, buildings $2,500iv. Reduce provision for doubtful debts to $625v. Partnership salary: $15,000 to Shoes. Not yet enteredvi. Interest on drawings: Shoes $450; Socks $300vii.…
- A and S are partners sharing profit and loss in the ratio of 3:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and S Partnership Statement of Financial Position(Balance Sheet) As at 31st December 2020 ASSETS Current Assets Kshs' Kshs' Cash and Cash Equivalent 26,000 Investments 24,000 Prepaid Insurance Debtors 26,000 Less Provision for Doubtful Debts 26,000 Inventories(stock) 40,000 Total Current Assets 116,000 Non Current Assets Machinery Less:Accumulated Depreciation 10,000 10,000 Buildings 60,000 Less:Accumulated Depreciation - 60,000 Furniture 30,000 Less:Accumulated Depreciation -…On July 1, 2020, Wency and William agreed to form a partnership from their respective proprietorship businesses and to share profits equally. Wency and William’s balance sheet before the formation were: Wency William Cash P 6,000 P 15,000 Accounts receivable 36,000 21,000 Merchandise inventory 99,000 126,000 Prepaid rent 12,000 Store equipment 120,000 90,000 Accum. Depreciation ( 45,000) ( 54,000) Building 375,000 Accum. Depreciation (75,000) Land 180,000 - Totals P 696,000 P 210,000 Accounts payable P 22,500 P 9,000 Mortgage payable 180,000 - Capital 493,500 201,000 Totals P 696,000 P 210,000 The fair values of Wency’s and William’s assets were: Wency William Merchandise inventory P 81,000 P 135,000 Prepaid rent - 0 Store equipment 45,000 19,500 Building 750,000 -…On February 14, AA and BB formed a partnership and contributed the following assets at historical costs: AA BB Cash P600,000 P200,000 Inventories ? ? Furniture and fixtures 40,000 Delivery equipment 80,000 Land 300,000 The land was subject to a mortgage which has an unpaid balance of P50,000. The mortgage will be assumed by the partnership. AA and BB agreed to share profits and losses in the ratio of 1:2, respectively. The partners agreed to contribute inventories (BB is to contribute inventories worth 2.5 times the peso value of the inventories to be contributed by AA) in order to have their capital credits in the same ratio as their profits and losses ratio. How much is the capital account of AA upon formation of the partnership?
- Adam and Boru are partners sharing profit and loss in the ratio of 1:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and B Partnership Statement of Financial Position As at 31st December 2020 ASSETS 2020 Current Assets Kshs'000 Kshs'000 Cash and Cash Equivalent 43,500 Short Term Deposits - Prepaid Insurance 1,000 Debtors 20,500 Less Provision for Doubtful Debts (1,000) 19,500 Inventories 30,000 94,000 Non Current Assets Machinery 22,000 Less:Accumulated Depreciation - 22,000 Buildings 30,000 Less:Accumulated Depreciation - 30,000…On January 1, 2021, A and B, both sole proprietors, decided to form a partnership to expand both of their businesses. According to their agreement, they will split profits and losses 75:25 and their initial capital ratio will also reflect that ratio.The following are A and B’s Statements of Financial Position (Attached in the photo): The values reflected in the Statement of Financial Position are already at fair values, except for the following accounts: - A's Accounts Receivable is now 20,000 less than what is stated in his Statement of Financial Position.- Both Inventories of A and B are now 90,000 and 70,000 respectively.- Equipment for B has an assessed value of 275,000, appraised value of 250,000 and book value of 200,000.- Additional accrued expenses are to be established in the amount of 10,000 for B only while additional accounts payable in the amount of 5,000 for A- It is also agreed that all liabilities will be assumed by the partnership, except for the notes payable of B…On January 1, 2021, A and B, both sole proprietors, decided to form a partnership to expand both of their businesses. According to their agreement, they will split profits and losses 75:25 and their initial capital ratio will also reflect that ratio.The following are A and B’s Statements of Financial Position (Attached in the photo): The values reflected in the Statement of Financial Position are already at fair values, except for the following accounts: - A's Accounts Receivable is now 20,000 less than what is stated in his Statement of Financial Position.- Both Inventories of A and B are now 90,000 and 70,000 respectively.- Equipment for B has an assessed value of 275,000, appraised value of 250,000 and book value of 200,000.- Additional accrued expenses are to be established in the amount of 10,000 for B only while additional accounts payable in the amount of 5,000 for A- It is also agreed that all liabilities will be assumed by the partnership, except for the notes payable of B…