(Adjustment of accumulated profit and reserves) A, B and Care partners sharing profit and losses in the ratio of 2:2: 1B retires from the firm on 31" March 2015. On the date of B's retirement, the following balances appeared in the books Of the firm: Profit & Loss A/c 50,000 General Reserve 30,000 Workmen's Compensation Reserve 40,000 Deferred Revenue Expenditure 30,000 Pass the necessary journal entries for the adjustment of these items on B's retirement

(Adjustment of accumulated profit and reserves) A, B and Care partners sharing profit and losses in the ratio of 2:2: 1B retires from the firm on 31" March 2015. On the date of B's retirement, the following balances appeared in the books Of the firm: Profit & Loss A/c 50,000 General Reserve 30,000 Workmen's Compensation Reserve 40,000 Deferred Revenue Expenditure 30,000 Pass the necessary journal entries for the adjustment of these items on B's retirement

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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Layla received a 2019 Form 1099-MI SC with an entry of $2.200 in box 7 inon employee compensation). Layta had helpeda trend ty ding so ocial mediantng Hon stout he go his income? Report the income on Schedule 1 (Form 1040) on line B as other income Report the income on Schedule t (Form 1040) on line 8 as other income ahd deduct the expenses as an adustment to mcome Complete a Schedule C (Fom 1040) and include any related expenses, such as her expenses for purchasing as Request that Layla's triend reptace the Form 1009-MISC with a Form W-2 000
On January 1, 2017, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $30,000, $58,000, and $60,000, respectively. Over the next three years, the business reported net income and (loss) as follows: 2017 . . . . . . . . . . . . . .. . . . . $70,000 2018 . . . . . . . . . . . . . . . . . . 42,000 2019 . . . . . . . . . . . . . . . . . . (25,000) During this period, each partner withdrew cash of $15,000 per year. Krause invested an additional $5,000 in cash on February 9, 2018.At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows:∙ Each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year.∙ Because of prior work experience, Angela is entitled to an annual salary allowance of $12,000 per year and Diaz is entitled to an annual salary allowance of…
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Please help me with a correct answer ABC is a calendar year accrual basis C corporation has $500,000 book income which appropriately includes $40,000 life insurance premiums paid on key employee, $10,000 entertainment expense, $80,000 bad debt expense using the allowance method, and $15,000 accrued employee compensation for the current year. ABC paid the $15,000 accrued employee compensation on February 20 of next year. If actual write-offs of accounts receivable were $100,000, determine ABC's deferred tax provision and indicate whether it is a deferred tax asset or a deferred tax liability for the current year.
Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. Complete this question by entering your answers in the tabs below. Appropriation of profits Allocate $249,000 net income in the ratio of their beginning capital investments. Note: Do not round intermediate calculations. Supporting Computations General Journal Ries Bax Thomas Percentage of Total Equity X Income Summary Allocated Income to Capital
On December 31, 2018, the unadjusted Statement of Financial Position of LAV Partnership shows the following data with profit and loss sharing agreement of 2:3:5. Total Assets 100,000 Total Liabilities 40,000 Lorna 10,000 Amy 20,000 Veronica 30,000 On December 31, 2018, Lorna decided to retire from the partnership. However, before the distribution of cash to Lorna, the following data errors were discovered during the pre-retirement audit:• During the year, machinery was over depreciated by $15,000.• The net income for the year is overstated by $5,000.After the adjustment, Lorna received $15,000 for her capital interest.How much is the capital of Amy after Lorna’s retirement? A. 27,500 B. 23,000 C. 21,875 D. 20,000
Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine decided to enter into a partnership agreement with Mr. Rain, thus the status of the business was changed in 2021. In 2022, the partnership income statement for Shine & Rain was as follows: Income Statement for the year ended 31 December 2022 Revenue 11,600,000 Expenses Salaries & Wages 7,600,000 Employer NIS Contribution 1,400,000 Rent and Rate 2,400,000 Interest 500,000 Maintenance 120,000 Depreciation 550,000 Loss on Disposal of Vehicle 80,000 Telephone 235,000 Electricity 255,000 General Expenses 700,000 Donations 85,000 Provision for Bad Debts 80,000 Fines and Penalties…
Preparing Partial Financial Statements and Closing Entries The partnership of Robo and Swing, CPAS, reported revenues of $215,000 and expenses of $80,000 on their year-end work sheet. Their capital balances as of January 1, 20--, were $55,000 for I. Robo and $45,000 for B. Swing. No additional investments were made during the year. As stated in their partnership agreement, after withdrawing salary allowances of $65,000 for Robo and $35,000 for Swing, the partners each withdrew their full 10% interest allowances on their January 1 capital balances. No additional withdrawals were made. Any remaining net income is to be divided on a 45-55 basis. Required: 1. Prepare the lower portion of the income statement of the partnership for the year ended December 31, 20--, showing the division of the partnership net income for the year.
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Holden admits Jane for partnership interest in his business. The balance sheet accounts of Holden on December 31, 2019 prior to the admission of Jane are as follows: Cash ? Accounts receivable 100,000 Inventory 150,000 Accounts payable 50,000 Holden, Capital ? It is agreed that for purposes of establishing Holden’s interest, the following adjustments should be made: An allowance for doubtful accounts of 5% of accounts receivable is to be established The inventory is to be valued at P160,000 Prepaid expense of P5,000 and accrued expense of P4,000 are to be recognized Jane is to invest P115,000 to give her 1/3 interest in the firm. Total assets of the partnership after the formation is? P399,000 P345,000 P395,000 P339,000