Mugg and Bean Partnership Mugg and Bean are partners with a computer store tradingas MB Computers. They share profits and losses in the ratio 4:3 respectively. On 28February 2019, the following list of balances were obtained from the company'sfinancial records: Land and buildings at cost 300 000 Office furniture at cost 80 000Vehicles at cost 75 000 Accumulated Depreciation: office furniture 26 875 AccumulatedDepreciation: Vehicles 23 750 Long-term loan (Unsecured) 87 500 Accounts receivable48 000 Accounts Payable 218 750 Bank (dr) 35 500 Provision for credit losses 5 000Accrued interest on loan 4 275 Net Income for the year 104 750 Capital Mugg 100 000Capital Bean 75 000 Current account: Mugg (cr) on 1 March 2018 12 500 Currentaccount: Bean (cr) on 1 March 2018 18 750 Drawings: Mugg 62 500 Drawings: Bean37 500 Inventory on hand 1 150 Stationary on hand 37 500 Page 3 of 14 RequiredPrepare the Statement of changes in equity to show the distribution (appropriation) ofprofits for MB Computers for the year ended 28 February 2019.?

The statement of changes in the equity of partners is the changes which have been made and that have…

Answered: Prepare the Statement of changes in…

Prepare the Statement of changes in equity to show the distribution (appropriation) of profits for MB Computers for the year ended 28 February 2019.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 21P

See similar textbooks

Similar questions

Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an agreement to sell the land for $375,000. In accordance with the sales agreenwnt, the buyer transferred $375,000 to Capstone’s bank account on February 20. How would elements of the accounting equation be affected by the sale?
Mendez and Marshall are in Partnership operating a manufacturing business. They share profit in the ratio 3:2. The trial balance at December 31, 2020 was as follows: Trial Balance as at December 31, 2020 DR CR $ $ FactoryEquipment at cost 26,000 Office-Motor Vehicles at cost 36,800 Provision for depreciation at Dec 31, 2019: Office-Equipment 7,800 Office-Motor Vehicles 14,720 Stock of Finish Goods at Dec 31, 2019 99,880 Debtors and Creditors 83,840 65,100 Cash at Bank 19272 Work in Progress at Dec 31, 2019 25,000 Direct Expenses 18,900 Direct Wages 31,500 Electricity 15,000 Insurance 5,000 Purchase of Raw Materials 120,000 Factory Maintenance 12,567 Provision for unrealized profit 15,447 Raw Material at Dec 31,2019 30,000 Sales 361,480 Salaries (Office Staff) 45,668 Office Expenses 3,480 Current Accounts at…
On April 1, 2021, Betty Trout created a new self-storage company called Betty Storage Company. The following eventsoccurred during the company's first month:April1Betty invested $75,000 cash, land and buildings worth $300,000 and $225,000 respectively.2Rented equipment by paying $4,800 for the first month.5Purchased $5,200 of office supplies for cash.10Paid $10,800 for the premium on a one-year insurance policy effective today.14Paid an employee $2,000 for two weeks' salary.24Collected $22,500 of storage revenue from customers27Collected $2,400 on a rental agreement for storage from May 1, 2021 to April 30, 202228Paid an employee $2,000 for two weeks' salary.29Paid the month's $600 phone bill30Repaired a leak in the roof of the buidling for $2,000 on account31Betty withdrew $3,500 cash from the company for personal use.The following is the company's chart of accounts:101Cash301Betty Trout, Capital106Accounts Receivable302Betty Trout, Drawings124Office Supplies401Storage…
Basil Partnership has the following information and transactions during 2021. 1) Class 1 (4%) building, opening UCC balance $660,000. This building was originally acquired in 2014 at a cost of $870,000. It was sold during the year for $585,000. There is no other property in this class. 2) Class 8 (20%) furniture, opening UCC balance $30,000. New office furniture was purchased for $10,000 to replace damaged items sold earlier in the year for $6,000 (original cost $9,000). 3) A new passenger vehicle (class 10.1 – 30%) was purchased during the year for $50,000. Following the above information, calculate the maximum CCA for 2021 with respect to each class. Provide details of all calculations.
10. MHD LLC a trading company dealing in fast moving consumer goods. Their trading results for the year ending 31st Dec, 2019 shows profit.of RO45750. for Accannt The following additional information is also given: The company owned a building cost RO90000. Company charged depreciation on building dihawind d at 9% per annum while in Oman tax law it is prescribed @ 4%. Company purchased a land for business purposes costing RO30000. The accountant nan cdecd ci charged depreciation on land at 10% per annum. The company made a donation on the occasion of Ramadan festival worth of RO4500 which was charged on the income statement. The gross income of the company amounts RO52650 before correcting the inventory valuation. The ledger book overvalued the opening inventory by RO1350 and undervalued closing inventory by RO1250 Company purchased computers to make all billing and administrative work computerized for RO3000 and accountant has expensed this cost. Company also offering…
Dane ASA bothpurchases and constructs various equipment it uses in its operations. The followingitems for two different types of equipment were recorded in random order during thecalendar year 2019. PurchaseCash paid for equipment, including sales tax of €5,000 €105,000Freight and insurance cost while in transit 2,000Cost of moving equipment into place at factory 3,100Wage cost for technicians to test equipment 6,000Insurance premium paid during first year of operation on this equipment 1,500Special plumbing fixtures required for new equipment 8,000Repair cost incurred in first year of operations related to this equipment 1,300ConstructionMaterial and purchased parts (gross cost €200,000; failed to take 1% cashdiscount)€200,000Imputed interest on funds used during construction (share financing) 14,000Labor costs 190,000Allocated overhead costs (fixed—€20,000; variable—€30,000) 50,000Profit on self-construction 30,000Cost of installing equipment 4,400InstructionsCompute the total cost…
Peters Consulting completed these transactions during June 2023:June 2 Trevor Peters, the sole proprietor, invested $46,000 cash and office equipment with a $24,000 fair value in the business.June 4 Purchased land and a small office building. The land was worth $268,000 and the building was worth $66,000. The purchase price was paid with $30,000 cash and a long-term note payable for $304,000.June 8 Transferred title of his personal automobile to the business. The automobile had a value of $7,000 and was to be used exclusively in the business.June 10 Purchased $600 of office supplies on credit.June 14 Completed $2,400 of services for a client. This amount is to be paid within 30 days.June 18 Paid $1,800 salary to an assistant.June 22 Paid the account payable from the transaction on June 10.June 24 Purchased $4,000 of new office equipment by paying $2,400 cash and trading in old equipment with a recorded cost of $1,600.June 28 Received $1,000 payment on the receivable created from the…
Tobias Eaden started a sole proprietorship named Sky High Ads. A customer’s message can be displayed on an airplane banner across the city. Sky High Ads had the following business activities during the month of November 2023: Nov 1 Invested $200,000 cash and aircraft equipment with a $50,000 fair value in a new sole proprietorship named Sky High Ads. 3 Purchased land and a small office building. The land was worth $400,000, and the building was worth $100,000. The purchase price was paid with $125,000 cash and a long-term note payable for the balance. 7 Eaden transferred title of his personal airplane to the business. The airplane had a value of $200,000 and was to be used exclusively in the business. 9 Purchased $5,000 of supplies on credit. 13 Provided services to a customer for a marriage proposal of $16,000 on credit. 17 Paid $3,000 wages to a pilot. 21 Signed an advertising contract to commence in January. A deposit of $250 must be paid by December 15.…
What accounting entry would you do 50:50 joint operation was commenced between two participants. Mary Company contributed cash of $90 000, and Strickland Company contributed a Building with a fair value of $90 000 and a carrying amount of $75 000. Using the line-by-line method of accounting, Strickland Company would record? DR Building in JO $75 000 CR Building $75 000 DR Building in JO $945000 CR Building $37 500 CR Gain on sale of building $7 500 DR Investment in joint operation $45 000 CR Building $37 500 CR Gain on sale of building $7 500 DR Cash in JO $45 000 DR Building in JO…
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.
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
Date , Trasaction On January 2020 1 Dodong invest P200,000 in the business worth 50,000 2 purchase barber equipment worth 50,000 from PEWDIEPIE enterprises 4 bought furniture for barber shop from D'COP furniture ,P 84,000 on account 6 Dodong withdrew P 15,000 for personal use 7 paid D'COP furniture in full 8 Received the electricity bill worth P60,000 from Name 10 Paid salaries for the barber worth P20,000 12 Rendered barber service for cash P 50,000 14 Paid electricity bill P 60,000 15 Bought new Razors for 15,000 from MANG KANOR enterprises 16 purchased additional furniture from mang kanor worth P6,000 signed a note promising to pay in january 18 17 received water bill for the month worth P1,500 18 paid the purchased furniture from mang kanor worthh P6,000 20 rendered service to mang pacquiao and crew for cash worth P 10,000 21 acquired new air condition from FANatics enterprises worth P20,000 24 paid the…