v2.cengagenow.com Cengage CengageNOWv2 | Online teaching and learning resource from Cengage Learning Ch 12-3 Exercises and Problems eBook Calculator Print Item Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $62,000 and $50,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdrew amounts equal to their salary allowances. Revenues were $668,000 and expenses were $520,000, for a net income of $148,000. a. Determine the division of $148,000 net income for the year. Schedule of Division of Net Income Farley Clark Total Salary allowance 62,000,000 112,000 Remaining income 21,600 Net income8,6006400 148,000 14,400 36,000 64,400 b. Provide journal entries to close the (1) revenues and expenses and (2) drawing accounts for the two members. For a compound transaction, if an amount box does not require an entry, leave it blank. Revenues Martin Farley, Member Equity Ashley Clark, Member Equity Salary Expense Martin Farley, Drawing Ashley Clark, Drawing (2) c. If the net income were less than the sum of the salary allowances, how would income be divided between the two members of the LLC? If the net income of the LLC were less than the sum of the salary allowances, both members would still be credited with their salary allowances. The difference between the net income and total salary allowances Check My Work 2 more Check My Work uses remaining Previous Next Assignment Score: 33.33% All work saved Email Instructor Save and Exit Submit Assignment for Grading

Question 3You were recently employed as the Financial Controller at Covid Free Ltd. You were provided with the following information on April 1, 2018: Balance on April 1, 2020Debtors control Dr. $65, 145 Debtors control Cr. 600Creditors control Dr. 950Creditors control Cr. 75, 500Totals for the month of April 2020Cash purchases 35, 600Credit purchases 62, 600Cash Sales 47, 000Credit Sales 75, 000Contra entry: Set off 1, 800Refund to cash customers 2, 800Bad debt written off 3, 300Discount Allowed 3, 750Total payments to suppliers 87, 000Total receipt from customers 98, 800Discount received 5, 500Dishonoured cheques: customers 2, 900Increase in the allowance for bad debts 2, 100Return Inwards 2, 400Return Outwards 15, 200Balances at 30 April 2020Debtors control: Dr. ? Cr: $8 300 Creditors control: Dr. $7 500 Cr: ? Required: A. Prepare the Sales ledger control account B. Prepare the Purchases control account

QUESTION 1-(COMPULSORY) 1(a)        Nairobi Ltd                                           Trial Balance                                           As at  31st December 2020                               Dr. Cr.                            Kshs'000  Kshs'000                         Sales                           500                         Furniture-at cost             35                           Salaries             80                           Buildings-at Cost 100                           Accounts Receivable 120                           Cash and Cash Equivalent 443                           Machinery-at Cost 122…

Q4 Company A provides a bundled service offering to Customer B. It charges Customer B $35 000 for initial connection to its network and two ongoing services – access to thenetwork for 1 year and ‘on-call troubleshooting’ advice for that year.Customer B pays the $35 000 upfront, on 1 July 2014. Company A determines that, if it were to charge a separate fee for each service if sold separately, the fee would be:Connection fee Access fee Troubleshooting$ 5 000 $12 000 $23 000The end of Company A’s reporting period is 30 June.RequiredPrepare the journal entries to record this transaction in accordance with AASB 118 for the year ended 30 June 2013, assuming Company A applies the relative fair valueapproach. Show

We prepared the statements for Quarter 1 (Q1) in class. Prepare the statements for Q2(April 1 –June30). Show your work on the next page. XYZ Company PRO  FORMA Quarterly Income Statements                                                                          Q1                         Q2 Sales                                                               $165,000 Cost of goods sold                                          115,500 Gross profit                                                      49,500 Operating expenses                                        138,000 Depreciation expense                                      131,250 Income before interest &taxes                      (219,750) Interest expense                                              25,000 Income before taxes                                      (244,750) Income tax (expense)/recovery                    122,375 Net Income                                                    $(122,375) PRO FORMA Quarterly Balance…

. (Learning Objective 5: Report a contingent liability) Pine Systems’ revenues for LO 52018 totaled $27.1 million. As with most companies, Pine is a defendant in lawsuits related toits products. Note 14 of the Pine annual report for 2018 reported the following:14. ContingenciesThe company is involved in various legal proceedings.... It is the Company’spolicy to accrue for amounts related to these legal matters if it is probablethat a liability has been incurred and an amount is reasonably estimable.Requirements1. Suppose Pine’s lawyers believe that a significant legal judgment against the company isreasonably possible. How should Pine report this situation in its financial statements?2. Suppose Pine’s lawyers believe it is probable that a $2.1 million judgment will be renderedagainst the company. In general terms, how would this situation be reported in Pine’sfinancial statements (using U.S. GAAP)?

10. At December 31, 2015, the records of Kosme Corporation provided the following: (see attached image for the given, someone already answer letter a to c, and letter d to f, so please answer letter g which is the last subpart. please asnwer it based on your knowledge. thank you so much!!) Direction: g. Amount of free retained earnings on December 31. __

GL0305 (Algo) - Based on Problem 3-5A LO P1, P3, P4, P5, P6 On April 1, Rick Mitchell created a new travel agency, Mitchell Travel. The following transactions occurred during the company’s first month.   April 2 Mitchell invested $38,000 cash and computer equipment worth $18,600 in the company in exchange for its common stock. April 3 The company rented furnished office space by paying $2,200 cash for the first month’s (April) rent. April 4 The company purchased $2,200 of office supplies for cash. April 10 The company paid $1,800 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,540 cash for two weeks’ salaries earned by employees. April 24 The company collected $16,000 cash for commissions revenue. April 28 The company paid $1,540 cash for two weeks’ salaries earned by employees. April 29 The company paid $650 cash for minor repairs to computer equipment. April 30 The company paid $650 cash for this month’s telephone…

Question 1, and 2 have been answer. Now, I need help with question 3 , and 4. Please explain step by step . Thank you. As mentioned in the employment contract, Joh would get $1,000 for every 1% increase in the operating income over the previous year's operating income. Therefore, Operating Income in 2018 = $300,000 Operating Income in 2019 = $480,000 Increase in Operating Income = $480,000 - $300,000 Increase in Operating Income = $180,000 Percentage increase in operating income over 2018 = $180,000/$300,000 = 60% John would get $1,000 for every 1% increase. The total increase is 60%. Hence, Joh would get a bonus of $60,000 in 2019 (60% increase) Step 2 Variable Costing vs Absorption costing We know that the selling price and the variable cost per unit have remained the same for 2018 and 2019. We also have the following data, Particulars 2018 2019 Operating Income $300,000 $480,000 Units Produced 25,000  29,000 Units Sold  25,000  25,000 Fixed Manufacturing Overhead…

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.   Q2​​Select any five financial transactions of your choice and make journal entries for the same.