For Pharoah Co., beginning capital balances on January 1, 2022, are Nancy Payne $23,300 and Ann Dody $22,500. During the year, drawings were Payne $7,600 and Dody $5,700. Net income was $31,800, and the partners share income equally. (a) Attempt in Progress (b) Prepare the owners' equity section of the balance sheet at December 31, 2022. PHAROAH CO. Partial Balance Sheet December 31, 2022

For Pharoah Co., beginning capital balances on January 1, 2022, are Nancy Payne $23,300 and Ann Dody $22,500. During the year, drawings were Payne $7,600 and Dody $5,700. Net income was $31,800, and the partners share income equally. (a) Attempt in Progress (b) Prepare the owners' equity section of the balance sheet at December 31, 2022. PHAROAH CO. Partial Balance Sheet December 31, 2022

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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Prepare the Statement of Changes in Equity for the year ended 28 February 2022. INFORMATION The information given below was extracted from the accounting records of Sunray Traders, a partnership business with Sunny and Raymond as partners. Extract from the ledger of Sunray Traders as at 28 February 2022 CREDIT DEBIT R Capital: Sunny 1 000 000 Capital: Raymond 600 000 Current alc Sumy (01 March 2021) 60 000 Current alc Raymond (01 March 2021) 40 000 Drawings: Sunny 300 000 Drawings Raymond 400 000 The following must be taken into account: (a) The Statement of Comprehensive Income refected a net profit of R900 000 for the year ended 28 February 2022 (b) The partnership agreement provided for interest on capital at 12% p.a on the balances on the capital accounts. Note: Sunny increased his capital contribution by R200 000 on 01 June 2021 whilst Raymond decreased his capital contribution by R200 000 on 01 September 2021. The capital changes have been recorded. (c) The partrers are entided…
The information given below was extracted from the accounting records of Britar Traders, a partnership business with Brian and Taryn as partners. REQUIRED Use the information provided to prepare the Statement of Changes in Equity for the year ended 29 February 2020. INFORMATION Extract from the ledger of Britar Traders as at 29 February 2020 Debit Credit R R Capital: Brian Capital: Taryn Current alc: Brian (01 March 2019) 900 000 600 000 50 000 Current alc: Taryn (01 March 2019) Drawings: Brian Drawings: Taryn 30 000 350 000 250 000 The following must be taken into account: 1. On 29 February 2020 the Statement of Comprehensive Incomec reflected, amongst others, the following: Sales R1 200 000 Sales returns R50 000 Net profit R700 000 2. The partners earn interest at 12% p.a. on their capital balances. Note: Brian increased his capital balance by R100 000 on 01 September 2019 whilst Taryn decreased her capital balance by R100 000 on the same date. 3. The partners were entitled to the…
You were presented the below transactions for the partners' capital accounts: Jasper, Capital Elena, Capital Daisy, Capital Dr. Cr. Dr Cr. Dr. Cr. 1-Mar 46 5,000 429,600 899,300 1-Apr 5,000 8,000 1-Jun 10,000 20,000 1-Aug 10,000 6,000 1-Sep 3,000 1-Oct 5,000 1,000 10,000 1-Dec 4,000 5,000 50,000 The partnership agreement for P/L division includes the following: Jasper and Elena receive an annual salary of P20,000 and P10,000, respectively. • Elena receives a bonus of 3% of net income before taxes but after bonus. Daisy receives a bonus of 2% of net income before taxes but after bonus. All partners are to receive a 10% interest on their average capital balances. • Remainder is divided equally. Rew The company incur 88,415 loss for the current year operation. Prepare an income statement of the partnership with schedule showing distribution of profits.
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
17-18. The balance sheet of partners DES, PA and SITO as of December 31, 2020 are shown below: Cash– P50,000; Noncash assets – P250,000; Liabilities – P80,000; Des, Capital (50%) – P100,000; Pa, Capital(25%) P75,000; Sito, Capital (25%) – P45,000. On January 2021, certain noncash assets were sold for acertain amount. Liquidation expenses and liabilities of P4,000 and P25,000 were paid. Future liquidationexpenses of P5,000 are anticipated. Pa received P42,750 from the first distribution of available cash.17. How much is the cash received from the realization? a. P120,000b. P140,000c. P130,000d. P75,000
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Prepare the Statement of Changes in Equity of Camray Traders for the year ended 28 February 2021 using template provided The following must be taken into account:(a) The net profit according to the statement of comprehensive income amounted to R1 400 000 on 28 February2021.(b) The partnership agreement made provision for the following:¦ Interest on capital must be provided at 18% per annum on the balances in the capital accounts.Note: Camy increased her capital by R240 000 on 01 September 2020. Raymond decreased his capital byR120 000 on the same date. The capital changes have been recorded.¦ The partners are entitled to the following monthly salaries:Camy R26 000Raymond R25 000Note: The partners’ salaries were increased by 10% with effect from 01 December 2020.¦ Camy and Raymond share the remaining profits or losses equally.
[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 Appropriation General of profits Journal Allocate $249,000 net income in the ratio of their begin (Do not round intermediate calculations.) Supporting Percentage of Total Equity Computations Ries Bax Thomas < X X X X Income Summary $ $ $ 249,000 249,000 249,000 Allocated Income to Capital Appropriation of profits General Journa
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. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. Cash Grayson Jackson, Capital Harry Barge, Capital Lewan Gorman, Capital b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ Harry Barge $ Lewan Gorman $
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.
The information given below was extracted from the accounting records of Veco Traders, a partnershipbusiness with Bobby and Vincent.Required:Prepare the Statement of Changes in Equity as at: 28 February 2021.INFORMATIONBalances in the ledger 28 February 2019Debit CreditCapital: Bobby 500 000Capital: Vincent 300 000Current account: Bobby (1 Mar 2020) 20 000Current account: Vincent (1 Mar 2020) 15 000Drawings: Bobby 250 000Drawings: Vincent 200 000Additional information1.The net profit according to the Profit and Loss account amounted to R500 000 on 28February 2021.2.The partnership agreement made provision for the following:1.Interest on capital must be provided at 15% per annum on the balances in the capitalAccounts from 1 March 2020 to 31 August 2020. With effect from 1 September 2019 theinterest rate on capital increases to 18% per annum.2.The partners are entitled to the following monthly salaries: Bobby R11 000Vincent R10 0003.Bobby is entitled to a bonus of 15% of the net profit…
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