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PRINCIPLES OF ACCOUNTING

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PRINCIPLES OF ACCOUNTING;Part A;1. After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances.;Cash 18,000;Inventory 73,000;Other assets 157,000;Accounts Payable 61,000;Abel, Capital 50,000;Barney, Capital 50,000;Cole, Capital 87,000;Noncash 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 $10,000;Other Assets 8,000;Liabilities 4,000;Brandon, Capital 7,000;Ryan, Capital 7,000;a. I f the Other Assets are sold for $10,000, how much will each partner receive before paying liabilities and distributing the remaining assets?;b. I f the Other Assets are sold for $8,000, how much will each PARTNER receive before paying liabilities and distributing remaining assets?;Part B;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 deposit;b. The first year?s interest;c. 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 bonds;b. Paid first semiannual interest payment;c. Retired the bonds at maturity;Part C;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 $2,000;Dividends paid during the year 800;Net income for the year 3,000;Correction of prior year error.;Purchase of land recorded as rent expense 1,000;2. Curtis Corporation?s balance sheet included the following;Common Stock, $5;par value, 5,000;shares issued and outstanding $25,000;Retained Earnings 20,000;Total Stockholders? Equity $45,000;Prepare 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

 

Paper#81621 | Written in 18-Jul-2015

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