The following are balances of a partnership between Shoe and Lace as at 2021 December 31: DR CR Capital on 2021 January 01: S S 30 000 Shoe Lace 30 000 Current Accounts on 2021 January 01: Shoe 1500 Lace Drawings during the year were: Shoe Lace Land and building Equipment Cash at bank Bank loan 90 000 Electricity Office salaries Advertising Bad debts Provision for bad debts 700 Debtors Creditors 9.500 Provision for depreciation: Equipment 2 000 Stock on 2021 December 31 Gross profit for the year 150 000 Additional information: i. Provision for bad debts is to be increased by $50. ii. Amount for advertising included payment of $120 for 2022. iii. Electricity bill of $145 is due. iv. Equipment is to be depreciated at 20% per annum. v. Interest on capital is allowed at 20% per annum. vi. Interest on drawings is 5% per annum. vii. Profits and losses are to be shared between Shoe and Lace in the ratio 2:3. A. Prepare Profit and Loss and Appropriation Account for year ended 2021 December 31. B. Draw up Capital Accounts of the partnership. C. Draw up Current Accounts of the partnership. 200 6 000 4400 160 000 15 000 20 000 1400 40 000 30 000 700 6 000 30 000

The following are balances of a partnership between Shoe and Lace as at 2021 December 31: DR CR Capital on 2021 January 01: S S 30 000 Shoe Lace 30 000 Current Accounts on 2021 January 01: Shoe 1500 Lace Drawings during the year were: Shoe Lace Land and building Equipment Cash at bank Bank loan 90 000 Electricity Office salaries Advertising Bad debts Provision for bad debts 700 Debtors Creditors 9.500 Provision for depreciation: Equipment 2 000 Stock on 2021 December 31 Gross profit for the year 150 000 Additional information: i. Provision for bad debts is to be increased by $50. ii. Amount for advertising included payment of $120 for 2022. iii. Electricity bill of $145 is due. iv. Equipment is to be depreciated at 20% per annum. v. Interest on capital is allowed at 20% per annum. vi. Interest on drawings is 5% per annum. vii. Profits and losses are to be shared between Shoe and Lace in the ratio 2:3. A. Prepare Profit and Loss and Appropriation Account for year ended 2021 December 31. B. Draw up Capital Accounts of the partnership. C. Draw up Current Accounts of the partnership. 200 6 000 4400 160 000 15 000 20 000 1400 40 000 30 000 700 6 000 30 000

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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Problem 2: Partners' capital account A and B formed a partnership and began operation on March 1, 20-. A invested P100,000 cash while B invested equipment with a book value of P300,000 and a fair value of P180,000. On August 31, 20x1, A invested additional cash if P20,000. The partnership agreement stipulated the following: a. Monthly salary of P2,000 and P10,000 to A and B respectively, recognized as expenses. b. 20% bonus on profit before salaries and interest but after bonus to B. c. 12% annual interest on the beginning capital balance of A. d. Remainder to be divided equally. The monthly salaries are withdrawn by the partners at each month-end. The partnership profit of P210,000 during the period before deduction of bonus and interest. Required: Compute the ending balances of each of the partners capital account.
please answer questions no. 4,5,6, and 7. provide solutions/explanation.
Rugged Sports Enterprises LP is organized as a limited partnership consisting of two individual partners: Hockey LP and Football LP. Hockey LP $ 339,000 35,850 Football LP $ 1,389,900 734,925 (150,000) $ 374,850 $ 1,974,825 Beginning-year capital balance Annual net income Cash distribution Ending-year capital balance Compute partner return on equity for each LPand the total) for the year using the above data from Rugged Sports Enterprises LP. Complete this question by entering your answers in the tabs below. Return on Partner Return Equity on Equity Compute partner return on equity for the year using the above data from Rugged Sports Enterprises LP. Return on Equity. Rugged Sports Enterprises LP Choose Numerator: / Choose Denominator: 1 1 Total $ 1,728,900 770,775 (150,000) $ 2,349,675 = = Return On Equity Equity Return On
Appropriation of profits General Journal Allocate $412,200 net income by providing annual salary allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally, Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Balance after interest and salaries Balance allocated equally Balance of income Shares of the partners Ries $ 38,000 $ 5,600✔ 45,600 x Bax 33,000 $ 7,200 89,200 $ 40,200 Thomas 45,000 8,000 $ 53,000 Total 116,000 (116,000) 20,800 (136,800) 45,600 $ (182,400) rnal
Required: • prepare journal entries • prepare ledger
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Question #2: Toto profit 56,000 The ABCD Partnership has the following balance sheet at January 1, 2012, prior to the admission of new partner, Eden. Cash and current assets Land Building and equipment Total $ 39,000 234,000 130,000 $ 403,000 Liabilities Adams, capital Barnes, capital Cordas, capital Davis, capital Total $ 52,000 26,000 52,000 117,000 156,000 $ 403,000 Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Eden made his investment, what were the individual capital balances?
A-1
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Partnership A, B and C is a law firm. You have been engaged as accountant to prepare financial statements for the year ended Dec. 31, 2019 Partnerships profits are alllocated based fist on salaries,then on interest on opening capital balances then on fixed ratio. Salary allocation amount are A $100000 B $100000 C $160000 Opening capital balances A $70000 B $60000 C $70000 Interest rate is: 5% Fixed ratio is A 3 B 2 C 5 required Prepare year end adjusting entries Allocate partnership profit or loss to each partner Prepare adjusting entry and complete trial balnce Prepare income statement and statement of partners capital for the year ended Dec. 31, 2019 and a balance sheet for Dec.31