For Pharoah Co., beginning capital balances on January 1, 2022, are Nancy Payne $18,900 and Ann Dody $17,100. During the year, drawings were Payne $8,500 and Dody $5,500. Net income was $29,700, and the partners share income equally. (a) Prepare the partners' capital statement for the year. (List items that increase partners' capital first.) PHAROAH CO. Partners' Capital Statement N. Payne A. Dody Total

For Pharoah Co., beginning capital balances on January 1, 2022, are Nancy Payne $18,900 and Ann Dody $17,100. During the year, drawings were Payne $8,500 and Dody $5,500. Net income was $29,700, and the partners share income equally. (a) Prepare the partners' capital statement for the year. (List items that increase partners' capital first.) PHAROAH CO. Partners' Capital Statement N. Payne A. Dody Total

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
For Crane Co., beginning capital balances on January 1, 2022, are Nancy Payne $21,200 and Ann Dody $17,200. During the year, drawings were Payne $7,000 and Dody $5,900. Net income was $26,500, and the partners share income equally. (a) Prepare the partners' capital statement for the year. (List Items that increase partners' capital first.) (b) : eTextbook and Medial Save for Later $ $ CRANE CO. Partners' Capital Statement N. Payne Prepare the owners' equity section of the balance sheet at December 31, 2022. CRANE CO. Partial Balance Sheet $ $ A. Dody Attempts: 0 of 5 used Total Submit Answer
For Oriole Co., beginning capital balances on January 1, 2022, are Nancy Payne $22,500 and Ann Dody $18,800. During the year, drawings were Payne $7,300 and Dody $4,700. Net income was $27,800, and the partners share income equally. (a) Prepare the partners' capital statement for the year. (List items that increase partners' capital first.) ◄► P $ +A ORIOLE CO. Partners' Capital Statement N. Payne $ A. Dody LA LA $ Total
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. Instructions Prepare the partners’ capital statement for the year
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $44,920 and $60,890, respectively. Lewan Gorman is to be admitted to the partnership, contributing $32,080 cash to the partnership, for which he is to receive an ownership equity of $36,650. All partners share equally in income. Required: a. On December 31, journalize the entry to record the admission of Gorman, who is to receive a bonus of $4,570. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partner? c. Why are tangible assets adjusted to current market prices, prior to admitting a new partner? Chart of…
Sam, Lam, Lim are partners with a capital investment of P20,000-P30,000- P40,000 respectively. On December 31 2019 after a year of operation, the partnership made a net profit of P80,000. Required: Compute for the division of net profit under each of the enumerated methods of dividing profit and losses. Give the journal entry to close the net profit to capital accounts under each method. 1. Ratio of partner's capital at the beginning of period 2. Interest of 12% allowed on partners capital equity and the balance divided equally 3. Salaries of Sam is P600, Lam P700 and Lim P800 for each partner and the balance is divided equally
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After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. Required: a. On December 31, journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partner? c. Why are tangible assets adjusted to current market prices, prior to admitting a new partner?
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The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount Land and Buildings 212500 Plant and Machinery 127500 Wages 106250 Opening Stock of Finished Goods 1381250 Opening Stock of Raw material 10625 Opening Stock of Work in Progress 76500 Provision for bad debts 6375 Sundry debtors 212500 Commission 42500 Carriage inwards 6375 Y's Loan A/c 127500 Carriage outwards 3825 Factory Expenses 31875 Royalties 6375 Purchase of Raw material (net) 318750 Factory rent & taxes 27625 Discount 12325 Office rent 17000 Insurance 8500 Bad debts 6375 Office Expenses 31875 Salaries of works manager 51000 Cash at bank 34850 2014500 2014500 The following additional information is to be taken into…