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Accounting workbook 2

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solution


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Question 1 K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $50,000 of personal cash to the partnership. Rosen owns land worth $15,000 and a small building worth $80,000, which she transfers to the partnership. Toso transfers to the partnership cash of $9,000, accounts receivable of $32,000 and equipment worth $39,000. The partnership expects to collect $29,000 of the accounts receivable.;Prepare the journal entries to record each of the partners? investments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.);Account Titles and Explanation Debit Credit;(To record investment of Decker.);(To record investment of Rosen.);(To record investment of Toso.);LINK TO TEXT;What amount would be reported as total owners? equity immediately after the investments?;Total owners? equity $;Question 2 McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth.;(1) Prepare a schedule showing the distribution of net income, assuming net income is $50,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).);DIVISION OF NET INCOME;McGill Smyth Total;Salary allowance $ $ $;Interest allowance;Total salaries and interest;Remaining income / deficiency;Total division of net income $ $ $;(2) Prepare a schedule showing the distribution of net income, assuming net income is $36,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).);DIVISION OF NET INCOME;McGill Smyth Total;Salary allowance $ $

 

Paper#74829 | Written in 18-Jul-2015

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