Beruflich Dokumente
Kultur Dokumente
a.
General Journal 19__ July
1 Cash Inventory
Tina Barton, Capital
$40,000 56,000
To record Barton's Investment in the partnership 1 Cash Accounts Receivable Inventory Office Equipment Allowance for Doubtful Accounts Accounts Payable Sam Liu,Capital To record Liu's Investment in the partnership 21,400 89,600 12,800 9,000
b.
Assets Cash Accounts receivable Less: Allowance for doubtful accounts Inventory Office equipment TOTAL ASSETS Liabilities & Partner's Equity Liabilities: Accounts payable Partner's equity Tina Barton, capital Sam Liu, Capital TOTAL LIABILITIES & PARTNER'S EQUITY
$89,600 8,000
96,000 96,000
c.
General Journal 19__ June
30 Income Summary
78,000
Sam Liu,Capital To close the Income Summary report 30 Tina Barton, Capital Sam Liu,Capital
Tina Barton, Drawing
32,000 32,000
12 A-1
$96,000
28,800
192,000 220,800
39,000 39,000
32,000 32,000
12A-2
a. B&G DISTRIBUTORS Income Statement For Current Year $ $ $ 112,380 91,620 $ Bolton Gorman $ $ 7,000 $ 20,500 $ 27,500 $ 20,500 26,500 $ 6,000 $ (13,000) 41,000 648,960 390,960 258,000
Sales Less: Cost of goods sold Gross profit on sales Operating expenses: Selling Administrative Net Income Division of net income: Net Income to be divided Interest on Invested capitals: Bolton ($70,000 x 0.10) Gorman ($60,000 x 0.10) Remaining net income to be dived equally Bolton Gorman Total share to each partner
b.
B&G DISTRIBUTORS Statement of Partner's Capital For Current Year Bolton Gorman $ $ $ 60,000 26,500 86,500 7,200 79,300 $ $ $ Total 130,000 54,000 184,000 17,280 166,720
Balance, beginning of year Add: Net Income Subtotal Less: Drawings Balance, end of the year
$ $ $
b.
Prepaid expenses Total current assets Plant and equipment: Equipment Less: accumulated depreciation Total plant and equipment Total assets Liabilities & Partners' Capital Current liabilities: Notes payable Accounts payable Accrued expenses Total current liabilities Partners' capital: Bolton, capital Gorman, capital Total partners' capital Total liabilities & partners' capital
$ $ 90,000 18,000 $
3,900 145,720
72,000 217,720
$ $ 87,420 79,300 $
166,720 217,720
12A-3
a. Distribution of Net Income Dunn (1) No mention of profit sharing Net Income to be divided Dunn (50%) Pascal (50%) Total share to each partner $ $ 22,500 $ 22,500 22,500 22,500 $ (45,000) 45,000 Pascal Net Income
(2) Interest on capitals, and fixed ratio Net Income to be divided Interest allownances on beginning capitals: Dunn ($40,000 x 15%) Pascal ($60,000 x 15%) Total allocated as interest allowances Remaining Income after interest allowances Allocated in a fixed ratio: Dunn (50%) Pascal (50%) Total share to each partner $ $ 6,000 $ 9,000 $ 15,000 $ 21,000 $ 15,000 24,000 $ (30,000) (15,000) 30,000 45,000
(3) Salaries, and balances in fixed ratio Net Income to be divided Salary allowances to partners Remaining Income after salary allowances Allocated in a fixed ratio: Dunn (50%) Pascal (50%) Total share to each partner $ $ 24,000 $ 20,000 $ 500 $ 24,500 $ 500 20,500 $ (1,000) 45,000 (44,000) 1,000
(4) Salaries, Interest and fixed ratio Net Income to be divided Salary allowances to partners Income after salary allowances Interest allowances on beginning capitals: Dunn ($40,000 x 15%) Pascal ($60,000 x 15%) Total allocated as interest allowances Residual loss after salary and interest allowances Allocated in a fixed ratio: Dunn (50%) Pascal (50%) $ $ 18,000 $ 26,000 $ 6,000 9,000 $ (7,000) (7,000) 14,000 (15,000) (14,000) 45,000 (44,000) 1,000
17,000
28,000
b.
General Journal
June
Income Summary Dunn, Capital Pascal, Capital To close the Income Summary account by crediting each partner with his authorized salary and with interest on invested capital and by dividing the residual loss equally.
12A-4
Distribution of Net Income Reed a. Net Income to be divided Salary allowances to partners Income after salary allowances Interest allownances on capitals: Reed($140,000 x 12%) Stein($100,000 x 12%) Trump($60,000 x 12%) Total allocated as interest allowances Remaining Income after salary and int allowances Allocated in a fixed ratio: Reed (50%) Stein (30%) Trump (20%) Total share to each partner Stein Trump Net Income $ 554,000 $ (98,000) $ 456,000
$ 60,000
$ 38,000
$ 16,800 $ 12,000 $ 7,200 $ (36,000) $ 420,000 $ 210,000 $ 126,000 $ 226,800 $ 198,000 $ 84,000 $ 129,200 $ (420,000) $ -
b.
Net Income to be divided Salary allowances to partners Loss after salary allowances Interest allownances on capitals: Reed($140,000 x 12%) Stein($100,000 x 12%) Trump($60,000 x 12%) Total allocated as interest allowances Remaining Loss after salary and int allowances Allocated in a fixed ratio: Reed (50%) Stein (30%) Trump (20%) Total share to each partner
$ 60,000
$ 38,000
$ $ $
$ 16,800 $ 12,000 $ 7,200 $ $ $ (25,500) $ (15,300) $ (8,700) $ 56,700 $ (10,200) $ $ 35,000 $ 51,000 (36,000) (51,000)
c.
Loss to be divided Salary allowances to partners Loss after salary allowances Interest allownances on capitals: Reed($140,000 x 12%) Stein($100,000 x 12%) Trump($60,000 x 12%) Total allocated as interest allowances Remaining Loss after salary and int allowances Allocated in a fixed ratio: Reed (50%) Stein (30%) Trump (20%) Total share to each partner
$ 60,000
$ 38,000
$ 16,800 $ 12,000 $ 7,200 $ (36,000) $ (153,000) $ (76,500) $ (45,900) $ (59,700) $ 21,600 $ (30,600) $ 153,000 $ 14,600 $ -
12 A-5
General Journal
Kidd, Capital
Ritter, Capital
$ 120,000
Svenson, Capital Kidd, Capital Kohl, Capital Ritter, Capital To record purchase by Ritter of one-quarter of the capital interestsof the existing partners. Net assets (owners' equity) of old partnership add: cash investment by Ritter Net assets (owners' equity) of new partnership Ritter's interest (1/4 of $920,000) Bonus to Ritter($230,000-$200,000 invested)
Cash Svenson, Capital($30,000 x 60%) Kidd, Capital($30,000 x 30%) Kohl, Capital($30,000 x 10%) Ritter, Capital To record Ritter's admission as a partner with a one-fourth interest in capital and profits upon investments of $200,000, and to reduce existing partners' capital accounts by proportionate share of nonus to incoming partner.
Net assets (owners' equity) of old partnership add: cash investment by Ritter Net assets (owners' equity) of new partnership Ritter's interest (1/4 of $1,080,000) Bonus to Ritter($360,000-$270,000 invested)
Cash Svenson, Capital($90,000 x 60%) Kidd, Capital($90,000 x 30%) Kohl, Capital($90,000 x 10%) Ritter, Capital To record Ritter's admission as a partner with a one-fourth interest in capital and profits upon investments of $360,000, and to divide the resulting bonus among the old partners in their relative profit-sharing ratios prior to admission of Ritter.
360,000
To record Ritter's admission as a partner with a one-fourth interest in capital and profits upon investments of $360,000, and to divide the resulting bonus among the old partners in their relative profit-sharing ratios prior to admission of Ritter.
12 A-5
120,000
180,000
$ $ $ $
230,000
720,000
12 A-6
General Journal
$ 220,000
Kim, Capital Patents Cash John, Capital (5/6 of $30,000) Ray, Capital (1/6 of $30,000) To record withdrawals of Kim from firm and settlement by him for $30,000 less than the book value of his capital account
$ 220,000
Kim, Capital John, Capital (5/6 of $30,000) Ray, Capital (1/6 Cash Notes Payable,12% To record the retirement of Partner Kim and payment of his capital account plus a bonus of $60,000. Bonus charged against continuing partners John and ray in Ratio 5:1.
12 A-6
55,000 165,000
100,000 180,000
12 A-7
General Journal
To record collections on accounts receivable, and write off balance. Liabilities Cash To pay creditors May, Capital Nix, Capital Peat, Capital Loss on Sale of Business To distribute loss among partners on 30:50:20 basis. May, Capital Nix, Capital Peat, Capital Cash ($27,200 + $66,400 - $36,800) To distribute cash as follows: Partner May Nix Peat Capital $43,200 $33,600 $24,000 Loss 13,200 22,000 8,800 Balance $30,000 $11,600 $15,200 $ 36,800
= = =
$56,800
Liabilities Cash To pay creditors in full May, Capital Nix, Capital Peat, Capital
Loss on Sale of Business To distribute loss among partners on 30:50:20 basis. May, Capital Peat, Capital Cash ($27,200 + $35,040 - $36,800) To distribute cash as follows, assuming that Nix will be unable to make up his deficiency: Partner May Nix Peat Capital $43,200 $33,600 $24,000 Loss 22,608 37,680 15,072 Balance $20,592 ($4,080) $8,928 $ 18,144 7,296
= = =
12 A-7
116,800
36,800
44,000
56,800
116,800
36,800
75,360
25,440