Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 12, Problem 12.7BPE
a.
To determine
Partnership
It is that form of organization which is owned and managed by two or more persons who invest and share the
The revenue per employee for each year.
b.
To determine
To interpret: The results of both the year.
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A company's accounting year ends on 31st December 2016. During the year the company paid a salary of $100,000. This includes $8,000 for the previous financial year. Salary for the month of December 2016, $10,000 remains unpaid. What is the salary to be accounted in the income statement for the period?
Income Statement would report a salary of $102,000
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Operating profit earned by M/s Arora & Sachdeva in 2016-17 was $ 17,00,000. Its non-operating incomes were $ 1,50,000 and non-operating expenses were $ 3,75,000. Calculate the amount of net profit earned by the firm.
Brick & Stone
Income Statement for the year ended 31 December 2016
Notes $ $
Sales 2,500,000
Cost of Sales 1 1,100,000
Gross Profit 1,400,000
Expenses
Salaries & Wages 2 760,000
Employer NIS Contribution 2,400
Rent and Rates 3 240,000
Insurance 50,000
Maintenance 120,000
Depreciation 4 55,000
Loss on Disposal of Vehicle 5 10,000
Telephone 6 35,000
Electricity 7 54,000
Utilities 70,000
Entertainment 8 100,000
Donations 9 85,000
Provision for Bad Debts 10 80,000
Fines and Penalties 11 15,000
Drawings 105,000
1,781,400
Net Profit/ (Loss) (381,400)
Brick & Stone
Notes to the Income Statement
The Cost of Sales includes goods valuing $250,000 that were purchased for Mr. Stone’s personal use.
Salaries and Wages include $25,000 per month, and $20,000 per month, paid to Mr. Stone and Mr. Brick respectively.
$65,000 of the rent relates to the private dwelling of Mr. Brick’s wife.
The rates of depreciation on the fixed assets of the business are below those given in the…
Chapter 12 Solutions
Accounting (Text Only)
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 12.1APECh. 12 - Prob. 12.1BPECh. 12 - Prob. 12.2APECh. 12 - Prob. 12.2BPECh. 12 - Prob. 12.3APECh. 12 - Prob. 12.3BPECh. 12 - Prob. 12.4APECh. 12 - Prob. 12.4BPECh. 12 - Prob. 12.5APECh. 12 - Prob. 12.5BPECh. 12 - Prob. 12.6APECh. 12 - Prob. 12.6BPECh. 12 - Prob. 12.7APECh. 12 - Prob. 12.7BPECh. 12 - Prob. 12.1EXCh. 12 - Prob. 12.2EXCh. 12 - Prob. 12.3EXCh. 12 - Prob. 12.4EXCh. 12 - Prob. 12.5EXCh. 12 - Prob. 12.6EXCh. 12 - Prob. 12.7EXCh. 12 - Prob. 12.8EXCh. 12 - Prob. 12.9EXCh. 12 - Prob. 12.10EXCh. 12 - Prob. 12.11EXCh. 12 - Prob. 12.12EXCh. 12 - Prob. 12.13EXCh. 12 - Prob. 12.14EXCh. 12 - Prob. 12.15EXCh. 12 - Prob. 12.16EXCh. 12 - Prob. 12.17EXCh. 12 - Statement of members equity, admitting new member...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Prob. 12.21EXCh. 12 - Prob. 12.22EXCh. 12 - Liquidating partnershipscapital deficiency...Ch. 12 - Prob. 12.24EXCh. 12 - Prob. 12.25EXCh. 12 - Prob. 12.26EXCh. 12 - Prob. 12.27EXCh. 12 - Prob. 12.28EXCh. 12 - Prob. 12.1APRCh. 12 - Prob. 12.2APRCh. 12 - Prob. 12.3APRCh. 12 - Prob. 12.4APRCh. 12 - Prob. 12.5APRCh. 12 - Prob. 12.6APRCh. 12 - Prob. 12.1BPRCh. 12 - Prob. 12.2BPRCh. 12 - Prob. 12.3BPRCh. 12 - Prob. 12.4BPRCh. 12 - Prob. 12.5BPRCh. 12 - Statement of partnership liquidation On August 3,...Ch. 12 - Prob. 12.1CPCh. 12 - Prob. 12.2CPCh. 12 - Revenue per employee The following table shows key...Ch. 12 - Prob. 12.4CP
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