The trial balances of two proprietorships on January 1, 2024, follow: Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Equipment Accumulated depreciation-equipment Accounts payable I. William, capital P. Brown, capital William Company Dr. $8,680 10,850 Accounts receivable-net realizable value Merchandise inventory Equipment 16,430 27,900 Cr. $1,860 William $8,060 17,360 15,500 14,880 24,800 22,320 Brown Company Dr. Cr. $7,440 16,120 11,408 17,980 Brown $13,020 12,400 21,700 $2,728 14,880 $63,860 $63,860 $52,948 $52,948 William and Brown decide to form a partnership on January 1 and agree on the following valuations for the noncash assets that they are each contributing: 6,820 28,520 All of the assets in each of the proprietorships will be transferred to the partnership. The partnership will also assume all the liabilities of the two proprietorships. William and Brown are also agreed that Brown will invest the amount of cash required so their investments in the partnership are equal.

The trial balances of two proprietorships on January 1, 2024, follow: Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Equipment Accumulated depreciation-equipment Accounts payable I. William, capital P. Brown, capital William Company Dr. $8,680 10,850 Accounts receivable-net realizable value Merchandise inventory Equipment 16,430 27,900 Cr. $1,860 William $8,060 17,360 15,500 14,880 24,800 22,320 Brown Company Dr. Cr. $7,440 16,120 11,408 17,980 Brown $13,020 12,400 21,700 $2,728 14,880 $63,860 $63,860 $52,948 $52,948 William and Brown decide to form a partnership on January 1 and agree on the following valuations for the noncash assets that they are each contributing: 6,820 28,520 All of the assets in each of the proprietorships will be transferred to the partnership. The partnership will also assume all the liabilities of the two proprietorships. William and Brown are also agreed that Brown will invest the amount of cash required so their investments in the partnership are equal.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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QUESTION : " The balance sheet of Lara Ltd are as follows: 31/12/2019 Non-Current Assets RM RM RM Equipment (Cost) Less: Accumulated depreciation 28,500 (11,450) 17,050 Current Assets 18,570 Inventory Account receivable 8,470 Less: Provision doubtful debts (420) 8,050 4,060 30,680 Cash and bank Total Assets Current Liabilities Account Payable 4,140 Non-Current Liabilities Loan 10,000 Total Liabilities (14,140) 16,540 Net Assets 33,590 Capital Opening Add: Net profit 35,760 10,240 Cash introduced Less: Drawing Total Capital (12,410) 33,590 31/12/2020 Non-Current Assets RM RM RM Equipment (Cost) Less: Accumulated depreciation 26,100 (13,010) 13,090 Current Assets 16,250 Inventory Account receivable 14,190 Less: Provision doubtful debts (800) 13,390 3,700 33,340 Cash and bank Total Assets Current Liabilities Account Payable 5,730 Non-Current Liabilities Loan 4,000 23,610 36,700 Total Liabilities (9,730) Net Assets
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Presented below are selected accounts of Cheyenne Company at December 31, 2025, Inventory (hinished goods) Unearned Service Revenue Equipment Inventory (work in process) Cash Debt Investments (trading) Customer Advances Restricted Cash for Plant Expansion 1 2 3. 4. 5. 6. 7. The following additional Information is available. $57,100 99,000 259,100 Currere Assets Current Liblikies Intangibis Assess Long-term invaimenta Long-term Lieblises Property Plant and Equipment Stockholders Equity Total Assets 41,700 Total Currans Assss Total Current Liablisis Total Intangis Assets Total Liabilities Total Liabilities and Stockholders Equity Total Long sam Inveaimanta Total Long-tarm Labiss Total Property, Plant, and Equipmara Total Stocichaldars Equlty 42,600 32,700 42,900 50,800 Cost of Goods Sold Notes Receivable Accounts Receivable Inventory (raw materials) Supplies Expense Allowance for Doubtful Accounts Licenses Additional Paid-in Capital Treasury Stock $2,105,600 37,200 CHEYENNE COMPANY…
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Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.
Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.A. P1,325,000b. P1,475,000c. P2,075,000d. P1,450,000