3. Toys For All Company was set up on July 1, 2018 with Barbie investing propertiescosting P320,000 but with a current fair value of P450,000. Hannah invested twiceBarbie's contribution. Partners have no agreement on the division of profits and losses.The business incurred a net loss of P210,000 in 2018 but recovered to earn a net profit ofP720,000 in 2019. It was further agreed that annual salaries be withdrawn by each asfollows: Barbie, P80,000 and Hannah, P120,000 but only if operation is a profit.Direction: a) Distribute the 2018 loss and give the journal entry.b) Distribute the 2019 profit and give the journal entry.c) Prepare a statement of partners' equity for each year.

Partnership Agreement :Partnership agreement can be referred to as the document which is formed at…

a current fair value of P450,000. Ha artners have no agreement on the division c net loss of P210,000 in 2018 but recovered t as further agreed that annual salaries be w and Hannah, P120,000 but only if operation the 2018 loss and give the journal entry. the 201 0 profit ond

a current fair value of P450,000. Ha artners have no agreement on the division c net loss of P210,000 in 2018 but recovered t as further agreed that annual salaries be w and Hannah, P120,000 but only if operation the 2018 loss and give the journal entry. the 201 0 profit ond

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse…

A: Answer to question a. Purchase cost of warehouse $65,000 Less: Depreciation claimed till year 0…

Q: Pierre Corporation generated a net operating loss in 2023. Which of the following are options for…

A: A net operating loss (NOL) occurs when a company's allowable tax deductions exceed its taxable…

Q: Hayday PLC. Trial Balance as at 31st December 2021 is shown below: £s Revenue Administrative…

Q: On January 1, 2025, Oriole Co. sells land for which it had paid $707,400 to Sargent Company,…

A: Journal entries are the first phase in the accounting process when raw financial data is…

Q: Do not use ai

A: 1. Consolidated Net Income for 2021Ackerman's Net Income: $400,000Brannigan's Net Income: $131,000As…

Q: Abra Ltd sold an item of plant to its subsidiary Cadabra Ltd on 1 July 2017 for $50 000. The asset…

A: Elimination Entry: In order to make sure that the parent company's financial records accurately…

Q: Among the account balance of Jeffrey Corporation at December 31, 2009 are the following: Patent…

A: A patent is the granting of a property right to the inventor by a sovereign authority. This grant…

Q: A lawnmower manufacturer has the following loss distribution and its annual products liability…

A: A policy limit is the amount of money an insurance provider will disburse for a single claim or for…

Q: January 1, 2016, Wheeler, Inc. purchased some equipment for $3,900. The equipment had an estimated…

A: Depreciation is used to record the cost of asset over the period of useful life of asset. There are…

Q: On January 1, 2015, Grape Company purchased a new building at a cost of P3,000,000. Depreciation was…

A: As per bartleby guideline, in case of interlinked question answer first 3 only After revaluation we…

Q: Pia Company commits to a plan t o dispose of one of its operating segments. The disposal meets the…

A: Discontinued operations are those operations which are not continued by the business. Loss from…

Q: Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per…

A: a. Prepare the journal entry will be passed to reflect the transfers:

Q: Problem 3: SALE AND LEASEBACK The following information were deemed relevant regarding a sale and…

A: To identify the profit or loss on the sale and lease back transactions we follow the following steps…

Q: year. Sage year-end is December 31. On April 1, 2023, Sage sold the patent to another company. (a)…

A: Patents are the intangible nature of assets which plays a vital role to build business. They are…

Q: am.106.

A: The objective of the question is to prepare journal entries for Sweet Acacia Limited to record asset…

Q: On January 1, 2017, Tenants Company acquired as a long term investment for P5,600,000 a 40% interest…

A: When a company holds more than 20% but less than 50% of the voting stock of another company, the…

Q: n November 4, 2020, Blue Company acquired an asset (27.5 year residential real property) for…

A: The amount of decrease in value of assets due to the time is the depreciation and due to…

Question

3. Toys For All Company was set up on July 1, 2018 with Barbie investing properties
costing P320,000 but with a current fair value of P450,000. Hannah invested twice
Barbie's contribution. Partners have no agreement on the division of profits and losses.
The business incurred a net loss of P210,000 in 2018 but recovered to earn a net profit of
P720,000 in 2019. It was further agreed that annual salaries be withdrawn by each as
follows: Barbie, P80,000 and Hannah, P120,000 but only if operation is a profit.
Direction: a) Distribute the 2018 loss and give the journal entry.
b) Distribute the 2019 profit and give the journal entry.
c) Prepare a statement of partners' equity for each year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

0J une 2017 (the last day of the financial (Marks: 25 year) Moore Retailers sold one of their office amDuters with an original cost price of R28 500. The computer was sold on credit to one of their am plovees for R7 500. Moore Retailers depreciate all their computers at 30% per year according to the reducing balances method. On 1 July 2016 the accumulated depreciation on the computer was R14 535.Required:Q.3.1 Calculate the profit or loss on the sale of the office computer (Office equipment) by completing the asset disposal account in your answer book.Round all amounts to the nearest rand.Ignore VAT for this question.Q.3.2 Journalise all transactions relating to the sale of the office computer (Office equipment) in the general journal at 30 June 2017.Narrations are not required.gnore VAT for this question.Q.3.3 If Moore Retailers purchased a new computer for R32 775 (including VAT), what amount will be posted to the office equipment account in the general ledger to account for this…
JOURNAL ENTRIES FOR CULVER COMPANY (a) Adjusting entries for 2020 (in$) 31/12/2020 Revenue Account Dr. 9800 To Provision for depreciation Account 9800 (Being market value of Gordon inc. and Wallace corporat. depreciated ) 31/12/2020 Investment in Martin inc. a/c Dr. 1800 To Unrealised Appreciation Reserve a/c 1800 (Being market value of Martin inc.appreciated) (b) sale of Gordon stock journal entry 1/03/2021 Bank a/c Dr. 66300 Loss on disposal of investment alc Dr. 1400 To Investment in Gordon inc a/c…
Do not give answer in image
Blue sky company’s balance sheet dated 12/31/2020 reports 6 million And assets in 2.4 million in liabilities book values for all the firms assets, approximate their fair values except for land which has the book value that is 360,000 lower than it’s fair value on December 31 Horatio corporation pay 6.12 million to acquire blue sky as a result of the purchase, Horacio should record a Goodwill amount of. please give me answer fast
P1,000,000 for another used equipment with fair v Prepare journal entries to record the transactions. Smile Company exchanged used equipment for anofe equipment of Frown Company. The following informata accumulated depr fair PL,200,000. The exchange is nonmonetary. Prob Mello of P2 Required: Price Chars Value Insur Moto Problem 23-7 (ACP) Smile Company exchanged used equipment for s equipment of Frown Company. The following inform pertains to the exchange: Total Less Cash Smile Frow Equipment Accumulated depreciation Fair value of equipment 2,400,000 2,000,000 500,000 2,200,00 1,750,00 500,000 The P20 refu Required: Re Prepare journal entry on the books of Smile and Frown. Pre 654
P. Ltd. Which depreciates its machinery @ 10% p.a. on written down value desires to change the basis to straight line method, the rate remaining the same. The decision is taken on 31st December, 2015 to be effective from 1st January, 2013. On 1st January, 2015 the balance in the machinery account is $ 29,16,000. On 1st July, 2015 a part of machinery purchased on 1st January, 2013 for $ 2,40,000 was sold for $ 1,35,000. On the same date a new machine is purchased for $ 4,50,000 and installed at a cost of $ 24,000. Prepare Machinery Account for 2015.
The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at the end of 2020 are shown here. Equipment Beg. bal. 80,600 Disposals 23,800 Acquisitions 40,000 End. bal. 96,800 Accumulated Depreciation—Equipment Disposals 8,700 Beg. bal. 47,800 Depr. exp. 13,300 End. bal. 52,400 In addition, Luo’s income statement reported a loss on the disposal of plant assets of $6,100. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment $
s
devrat
kk.2
In early January 2024, Ayayai Corporation applied for a trade name, incurring legal costs of $15,800. In January 2025, Ayayai incurred $7,200 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization 12/31/24 book value 2025 amortization 12/31/25 book value $ LA LA $ of SUPPORT
Current Attempt in Progress Blossom Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Installment sales Taxable income $140000 noncurrent. $1500000 3500000 O $140000 current. O $700000 noncurrent. O $0. (2800000) The estimated litigation expense of $3500000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1400000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1400000 current and $1400000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized is $2200000