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ACC - After several years of business, Abel, Barney, and Cole are liquidating

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Question;Part A (15 points each for a possible total of 30 points);(1) After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances.Cash 18,000Inventory 73,000Other assets 157,000 Accounts Payable 61,000 Abel, Capital 50,000 Barney, Capital 50,000 Cole, Capital 87,000Non-cash assets are sold for $275,000. Profits and losses are shared equally.After all liabilities are paid, divide the remaining cash amongst the partners.?;(2) The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before liquidation, their balance sheet balances are as follows:Cash $10,000Other Assets 8,000Liabilities 4,000Brandon, Capital 7,000Ryan, Capital 7,000a. If the Other Assets are sold for $10,000, how much will each partner receive before paying liabilities and distributing the remaining assets?;b. If the Other Assets are sold for $8,000, how much will each partner receive before paying liabilities and distributing remaining assets?;Part B (20 points each for a possible total of 40 points);(1) Simon Brothers pays $47,000 into a bond sinking fund each year to redeem the future maturity of its bonds. During the first year, the fund earned $3,825. At the time of bond redemption, the fund has a balance of $417,000. Of this, $400,000 was used to redeem the bonds. Journalize the following entries.a. Initial depositb. The first year's interestc. The redemption of the bonds;(2) On January 1, Auctions Online issued $300,000, 9%, 10-year bonds to lenders at the contract rate. Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries.a. Issued the bondsb. Paid first semiannual interest paymentc. Retired the bonds at maturity?;Part C (15 points each for a possible total of 30 points);(1) Prepare a statement of retained earnings in proper form for White Corporation for the year ended December 31, 2012, from the following:Retained Earnings, January 1, 2012 $2,000Dividends paid during the year 800Net income for the year 3,000Correction of prior year error. Purchaseof land recorded as rent expense 1,000;(2) Curtis Corporation's balance sheet included the following:Common Stock, $5 par value, 5,000 shares issuedand outstanding $25,000Retained Earnings 20,000Total Stockholders' Equity $45,000Prepare journal entries for the following transactions.May 3 Issued 500 shares at $6 per share. 9 Reacquired 100 shares at $4 per share. 15 Reissued 50 of the Treasury shares at $7 per share. 17 Reissued 10 of the Treasury shares at $3 per share.;Part A (5 points each for a possible total of 15 points);The following information is given for Tripp Company, which uses the indirect method.Net income $20,000Depreciation expense 3,000Increase in accounts receivable 2,000Payment of dividends 2,000Proceeds from sale of equipment 6,000Increase in accounts payable 4,000Decrease in inventory 3,000From the information provided, answer the following questions;(1) The cash flow from operating activities is ________.;(2) The cash flow from investing activities is ________.;(3) The cash flow from financing activities is ________.?;Part B (5 points each for a possible total of 25 points)Selected data for Stick's Design are given as of December 31, Year 1 and Year 2 (rounded to the nearest hundredth). Year 2 Year 1Net Credit Sales $25,000 $30,000Cost of Goods Sold 16,000 18,000Net Income 2,000 2,800Cash 5,000 900Accounts Receivable 3,000 2,000Inventory 2,000 3,600Current Liabilities 6,000 5,000Compute the following;(1) Current ratio for Year 2.;(2) Acid-test ratio for Year 2.;(3) Accounts receivable turnover for Year 2.;(4) Average collection period for Year 2.;(5) Inventory turnover for Year 2.;Part C (30 points)Prepare an income statement showing departmental contribution margin based on the following: Dept. X Dept. Y Rent ExpenseSpace (square feet) 17,500 35,000Net Sales $60,000 $40,000Cost of Goods Sold 18,000 16,000Rent Expense (allocated based on square feet) $2,700?;Part D (5 points each for a possible total of 30 points)From the following transactions, prepare the appropriate general journal entries for the month of April.;(1) Raw materials costing $60,000 were issued from the storeroom.;(2) Direct labor of $53,000 was charged to production.;(3) Indirect labor costs of $17,000 were incurred.;(4) Overhead was applied at the rate of 40% of direct labor dollars.(5) Completed products costing $42,000 were transferred to finished goods.;(6) Products costing $32,000 were sold.

 

Paper#44531 | Written in 18-Jul-2015

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