E Left:0.25"E Before 0 pt. dnoA RotatePosition WraPBringText Forward Backward-SendSelection* Right 0"= After0 ptPaneParagraphArrange1. For Starrite Co., beginning capital balances on January 1, 2012, are Dona Noble$18,000 and Amy Bond $16,000. During the year, drawings were Noble $7,000 andBond $4,000. Net income was $20,000, and the partners share income equally.InstructionsPrepare the partners capital statement for the year.2. The net income for Lodi Co. for 2012 was $270,000. For 2012, depreciation on plantassets was $50,000, and the company incurred a gain on sale of plant assets of $12,000.Compute net cash provided by operating activities under the indirect method.3. Kimmel Corporation purchased debt investments for $50.000 on January 1, 2012. OnJuly 1, 2012, Kiimmel recetved cash interest of S2,500. Journalize the purchase and thereceipt of interest. Assume that no interest has been accrued.

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1. For Starrite Co., beginning capital balances on January 1, 2012, are Donna Noble $18,000 and Amy Bond $16,000. During the year, drawings were Noble $7,000 and Bond $4,000. Net income was $20,000, and the partners share income equally.

1. For Starrite Co., beginning capital balances on January 1, 2012, are Donna Noble $18,000 and Amy Bond $16,000. During the year, drawings were Noble $7,000 and Bond $4,000. Net income was $20,000, and the partners share income equally.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ebanks, Brown, and Thomas are partners. They carry on a business jointly as EBT surveyors and share profits and losses in the ratio 25:45: 30. The trading account profit as at 31 December 2021 was $6,500,000 after charging a nominal tax of $750,000. Notes: The partners receive interest on their capital accounts at 9.5 % on the balance of their partner capital at the end of the budget year. The interest on the capital account was not included in the income statement. Include in the income statement is $80,000 salary per month for each partner. The partnership paid motor vehicle expenses for vehicles owned by the partners as follows: Ebanks -$ 50,000 Brown - $80,000 Thomas - $130,000 The partners did not use the vehicles for the partnership business. Profit on disposal was $180,000. Depreciation on plant and machinery for the year was $900,000. In recognition of the new IFRS 9 standard, a provision for bad…
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On November 10, 2020, Maher, Saher, and Taher, partners of Maher, Saher, & Taher LLP, had capital account balances of $40,000, $50,000, and $18,000, respectively, and shared net income and losses in a 4 : 2 : 1 ratio respectively. the Capital per unit of income sharing ratio for Maher would be: a. $40,000. b. $10,000. c. $20,000. d. $25,000.
heng invested $108,000 and Murray invested $208,000 in a partnership. They agreed to share incomes and losses by allowing a $62,000 per year salary allowance to Zheng and a $42,000 per year salary allowance to Murray, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Assuming net income for the current year is $109,000, the journal entry to allocate net income is: Debit Income Summary, $109,000; Credit Zheng, Capital, $54,500, Credit Murray, Capital, $54,500. Debit Income Summary, $109,000; Credit Zheng, Capital, $36,600, Credit Murray, Capital, $72,400. Debit Zheng, Capital, $59,500, Debit Murray, Capital, $49,500; Credit Income Summary, $109,000; Debit Income Summary, $109,000; Credit Zheng, Capital, $59,500, Credit Murray, Capital, $49,500. Debit Income Summary, $109,000; Credit Zheng, Capital, $42,900, Credit Murray, Capital, $66,100.
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