ne profit.A&B Co. started operations on April 1, 20x1. Mr. A, a partnerin A&B Co., is entitled to 6% interest on the weighted averagebalance of his capital account. Mr. A's ledger shows thefollowing:A, CapitalRef.DateDebitCreditBalance100,000.0079,000.0087,000.00001100,000.00April 1, 20x1June 30, 20x1September 30, 20x1December 1, 20x1(9821,000.001468,000.002114,000.0083,000.00Requirement: Compute for the interest on Mr. A's weightedaverage capital balance.

Assuming year ends on 31 st March 20x2 in order to get 12 months

ne profit. A&B Co. started operations on April 1, 20x1. Mr. A, a partner in A&B Co., is entitled to 6% interest on the weighted average balance of his capital account. Mr. A's ledger shows the following: A, Capital Ref. Date Debit Credit Balance April 1, 20x1 June 30, 20x1 September 30, 20x1 December 1, 20x1 001 100,000.00 100,000.00 79,000.00 87,000.00 83,000.00 098 21,000.00 146 8,000.00 211 4,000.00 Requirement; Compute for the interest on Mr. A's weighted average capital balance.

ne profit. A&B Co. started operations on April 1, 20x1. Mr. A, a partner in A&B Co., is entitled to 6% interest on the weighted average balance of his capital account. Mr. A's ledger shows the following: A, Capital Ref. Date Debit Credit Balance April 1, 20x1 June 30, 20x1 September 30, 20x1 December 1, 20x1 001 100,000.00 100,000.00 79,000.00 87,000.00 83,000.00 098 21,000.00 146 8,000.00 211 4,000.00 Requirement; Compute for the interest on Mr. A's weighted average capital balance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming George Company unes (a) the fair value method and (b) the equity method for accounting for its investments in Tiffany Company (a) Fair Value Method. Transaction (b) Equity Method Investment Dividend Investment Investment Account Revenue Account Revenue 1. At the beginning of Year 1. George bought 40% of Tiffany's common stock at its book value. Total book value of all Tiffany's common stock was $1,000,000 on this date. 2. During Year 1, Tiffany reported $50,000 of net income and paid $50,000 of dividends. 3. During Year 2, Tiffany reported $100,000 of net income and paid $20,000 of dividends. 4. During Year 3, Tiffany reported a net loss of $15,000 and paid $5,000 of dividends. 5. Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.…
Subject:
The following are the Balance sheet items of Oman Packaging Company. Prepare and calculate the Gross Working Capital for Oman Packaging Company for the year 1920-21. ITEM OMR Closing Stock 100 Rent 50 Wages & Manufacturing 90 expenses Selling Expenses 40 Marketable securities 380 Sundry Creditors 45 Bills payable 105 Sundry Debtors 600 Select one: O a. 700 b. None of the options С. 2705 d. None of the options O e. 1080
The statements of financial position H, S and T as at 31 December 20X8 were as follows: Assets: H (Rs. 000) S(Rs. 000) T(Rs. 000) Investment in S 3,300 Investment in T 2,200 Other assets 3,700 2,400 3,500 7,000 4,600 3,500 Equity Share capital 4,000 2,500 2,000 Retained profits 2,000 1,100 1,000 Liabilities 1,000 1,000 500 7,000 4,600 1,500 H acquired its 80% investment in S on 1 January 20X7. S acquired its 60% investment in T on 31 December 20X7. H measures NCI on acquistion at its fair value. At the dates of the share purchases, the following information is available: Retained profits Retained profits of S (Rs. 000) Date of T (Rs. 000) 1 January 20X7 400 200 31 December 20X7 700 320 Fair value of NCI Fair value of NCI Date of S (Rs. 000) of T (Rs. 000) 1 January 20X7 800 1,600 31 December 20X7 960 2,000 Required Prepare the consolidated statement of financial position for the H Group as at 31 December 20X8.
Calculate (a) interest expense, (b) taxable income, and (c) earnings per share if: DFL = 1.56, EBIT = $702,000; tax rate = 25%, common stock outstanding = 100,000 shares. Show work.
Received $17000 cash investment from the business owners and distributed 1000 shares of common stock to them with a market price of $17 per share? which accounts are affected in this transactions?
Denna Company's working capital accounts at the beginning of the year follow: Cash $ 50,000 Marketable securities $ 30,000 Accounts receivable, net Inventory Prepaid expenses Accounts payable $ 10,000 $ 150,000 $ 30,000 $ 20,000 During the year, Denna Company completed the following transactions: Notes due within one year Accrued liabilities x. Paid a cash dividend previously declared, $12,000. a. Issued additional shares of common stock for cash, $100,000. b. Sold inventory costing $50,000 for $80,000, on account. c. Wrote off uncollectible accounts in the amount of $10,000, reducing the accounts receivable balance accordingly. d. Declared a cash dividend, $15,000. e. Paid accounts payable, $50,000. f. Borrowed cash on a short-term note with the bank, $35,000. g. Sold inventory costing $15,000 for $10,000 cash. h. Purchased inventory on account, $60,000. i. Paid off all short-term notes due, $30,000. j. Purchased equipment for cash, $15,000. k. Sold marketable securities costing…
A corporation using the equity method of accounting for its investment in a 80%–owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 100,000$ ? Select one: a. 112,000 b. 115,000 c. 120,000 d. 100,00
Compute the free cash flow to equity for a firm with the following conditions (each account is reported on a per share basis): Net Income $9.25 Depreciation $1.52 Proceeds from a Bond Issue $3.00 Total Debt Repayments $0.45 Change in Net Working Capital - $1.00 $15.22. O $14.32. $13.22. $12.32.
SOLVE THE FOLLOWING PROBLEM OF ACCOUNTING 1. Mr. Alfredo Mendaz gives us a loan of $160,000.00, for six months, charging us 42% annually. Make the entry at the time of the loan, and at the time of payment. 2. An entity obtains a net distributable profit of $175,00.00. The shareholders' meeting decrees a dividend of $50.00 per share, for each of the 2,500 subscribed shares. 3. Suppose that, at the end of the year, a bill of exchange for $160,000.00 is owed in favor of our creditor Carlos Pérez, due five months ago, on which the company has to pay interest Moratoriums of 6% per month. 4. An entity receives cash equivalent to 35% from a customer on a merchandise order with a value of $200,000.00. make the entry at the time of the advance, and when full payment is made and the merchandise is delivered. 5. Calculate the expenses and taxes pending payment, for each of the following concepts. CONCEPT salaries rents payroll taxes IMSS, SAR E fees INFONAVIT Electric energy service telephone…
S. Panya has total assets of $1,000,000; common equity of $400,000; a gross profit of $800,000; total operating expenses of $620,000; interest expense of $20,000; income taxes of $74,000; and preferred dividends of $30,000. What is S. Panya's return on equity? A. 20% B. 14% C. 7.5% D. 21.5%
The double cntry Equity Case study no. 1: A mumber of persons and/or companies decide to setup a company having a 100,000 lei subscribed capital. Subsequently the shareholders deposit the subscribed capital into the company's bank account Homework. Based on the transactions that were recorded, fill in the corresponding Ledger and Final Balance Sheet Case study no. 2: At the beginning of the financial reporting period, FINCONT Ltd. has a social capital of 2,000,000 lei (divided into 20,000 shares) and other reserves of 200,000 lei The Shareholders General Assembly approves the increase of the social capital by issuance of 4,600 new shares, as follows: a) 1,000 shares are distributed to existing shareholders due to incorporating 100,000 lei worth other reserves into the social capital; b) 3,000 shares are given to a new shareholder bringing as contribution a motor vehicle measured at a contribution value of 330,000 lei c) 600 shares are subscribed by shareholders at an issue value…