Vince, Mike, and Emily are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Vince, $18,000, Mike, $11,000, Emily, $(6,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $23,000 in cash to be distributed. Emily pays $6,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be: Vince, Capital 27,000 Mike, Capital 27,000 Emily, Capital 27,000 Cash 23,000 Cash 23,000 Emily, Capital 6,000 Vince, Capital 18,000 Mike, Capital 11,000 Vince, Capital 18,000 Mike, Capital 11,000 Emily, Capital 6,000 Cash 23,000 Vince, Capital 18,000 Mike, Capital 11,000 Cash 29,000 Vince, Capital 26,000 Mike, Capital 26,000 2.Groh and Jackson are partners. Groh's capital balance in the partnership is $67,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 10% interest. Block will invest $47,000 in the partnership. The bonus that is granted to Groh and Jackson equals: $28,600 each. 28,800 to Groh; $28,600 to Jackson. $28,800 each $14,400 each $0, because Groh and Jackson actually grant a bonus to Block. 3.Groh and Jackson are partners. $Groh's capital balance in the partnership is $69,000, and Jackson's capital balance $71,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $34,800 in the partnership. The bonus that is granted to Block equals: $8,900 $4,450 $8,700 $11,600 $0, because Block must actually grant a bonus to Groh and Jackson 4.Rice, Heburn, and Dimarco formed a partnership with Rice contributing $77,000, Heburn contributing $55,000 and Dimarco contributing $41,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $89,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Dimarco's capital account? (Do not round the intermediate answers) $28,295 $39,613 $21,092 $89,000 $77,000 5.Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $54,000, and her ending partnership capital balance for the current year is $60,000. Her share of this year's partnership income was $5,720. What is her partner return on equity (rounded)? 9.53% 10.04% 10.59% 1.05% 9.97% 6.B.Peter contributed $18,000 in cash plus office equipment valued at $7,000 to the BP Partnership. The journal entry to record the transaction for the partnership is: Cash 18000 Office Equipment 7000 Common Stock 25000 Cash 18000 Office Equipment 7000 B.Peter, Capital 25000 BP Partnership 25000 B.Peter, Capital 25000 B.Peter, Capital 25000 BP Partnership, Capital 25000 Cash 18000 Office Equipment 7000 BP Partnership 25000 7. A partnership recorded the following journal entry: Cash 70,000 M.Ken, Capital 9,000 Eric, Capital 9,000 L.Farrell, Capital 88,000 This entry reflects: Withdrawal of $9,000 each by M.Ken and Eric upon the admission of a new partner. Addition of a partner who pays a bonus to each of the other partners. Acceptance of a new partner who invests $70,000 and receives a $18,000 bonus. Additional investment into the partnership by M.Ken and Eric. Withdrawal of a partner who pays a $9,000 bonus to each of the other partners. 8.B.Tanner contributed $18,000 in cash plus office equipment valued at $6,000 to the BT Partnership. The journal entry to record the transaction for the partnership is: Cash 18000 Office Equipment 6000 BT Partnership 24000 Cash 18000 Office Equipment 6000 B.Tanner, Capital 24000 Cash 18000 Office Equipment 6000 Common Stock 24000 B.Tanner, Capital 24000 BT Partnership, Capital 24000 BT Partnership 24000 B.Tanner, Capital 240009.Rocky and Kingston formed a partnership with capital contributions of $600,000 and $500,000, respectively. Their partnership agreement calls for Rocky to receive a $50,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $193,000, then Rocky and Kingston's respective shares are: $77,200; $115,800 $126,500; $66,500 $96,500; $96,500 $38,600; $154,400 $115,800; $77,20010.Web Services is organized as a limited partnership, with David White as one of its partners. David's capital account began the year with a balance of $55,000. During the year, David's share of the partnership income was $7,700, and David received $3,500 in distributions from the partnership. What is David's partner return on equity (rounded)? 15.0% 12.3% 6.7% 13.5% 14.0% 11.Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $53,000, and her ending partnership capital balance for the current year is $64,000. Her share of this year's partnership income was $5,900. What is her partner return on equity (rounded)? 9.22% 10.09% 11.13% 1.86% 9.92% 12.Rocky and Lawson are partners. Rocky's capital balance in the partnership is $69,000, and Lawson's capital balance $70,000. Rocky and Lawson have agreed to share equally in income or loss. Rocky and Lawson agree to accept Simon with a 15% interest. Simon will invest $45,000 in the partnership. The bonus that is granted to Rocky and Lawson equals: $8,700 each 17,400 to Rocky; $17,200 to Lawson. $17,400 each $17,200 each. $0, because Rocky and Lawson actually grant a bonus to Simon. 13.Chen and Ben are forming a partnership. Chen will invest a building that currently is being used by another business owned by Chen. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $21,000 note secured by a mortgage on that building. Ben will invest $80,000 cash. For the partnership, the amounts to be recorded for the building and for Chen's Capital account are: Building, $69,000 and Chen, Capital, $80,000. Building, $90,000 and Chen, Capital, $69,000. Building, $90,000 and Chen, Capital, $90,000. Building, $69,000 and Chen, Capital, $69,000. Building, $21,000 and Chen, Capital, $90,000. 14.Nguyen invested $400,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $60,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are: $30,000 to Nguyen; $0 to Hansen. $6,000 to Nguyen; $24,000 to Hansen. $24,000 to Nguyen; $6,000 to Hansen. $18,000 to Nguyen; $12,000 to Hansen. $15,000 to Nguyen; $18,000 to Hansen. 15.Helen, Rose, and Mark formed a partnership with Helen contributing $73,000, Rose contributing $55,000 and Mark contributing $39,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $94,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Mark's capital account? (Do not round the intermediate answers) $73,000 $41,090 $21,952 $30,958 $94,000 16.Nick invested $200,000 and Herald invested $100,000 in a partnership. They agreed to share incomes and losses by allowing a $20,000 per year salary allowance to Nick and a $60,000 per year salary allowance to Herald, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $20,000 in income are: $12,000 to Nick; $8,000 to Herald. $10,000 to Nick; $12,000 to Herald. $16,000 to Nick; $4,000 to Herald. $4,000 to Nick; $16,000 to Herald. $-5,000 to Nick; $25,000 to Herald. 17. Groh and Jackson are partners. $Groh's capital balance in the partnership is $66,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $35,000 in the partnership. The bonus that is granted to Block equals: $7,250 $3,625 $7,050 $11,667 $0, because Block must actually grant a bonus to Groh and Jackson 18. McCartney, Harris, and Hussin are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are McCartney, $19,000, Harris, $17,000, Hussin, $(3,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $33,000 in cash to be distributed. Hussin pays $3,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be: McCartney, Capital 34,500 Harris, Capital 34,500 Cash 33,000 McCartney, Capital 19,000 Harris, Capital 17,000 Cash 36,000 McCartney, Capital 35,000 Harris, Capital 35,000 Hussin, Capital 35,000 Cash 33,000 McCartney, Capital 19,000 Harris, Capital 17,000 Hussin, Capital 3,000 Cash 33,000 Cash 33,000 Hussin, Capital 3,000 McCartney, Capital 19,000 Harris, Capital 17,000 19.Thomas and Mathew formed a partnership with capital contributions of $400,000 and $500,000, respectively. Their partnership agreement calls for Thomas to receive a $30,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $195,000, then Thomas and Mathew's respective shares are: $107,500; $87,500 $97,500; $97,500 $39,000; $156,000 $78,000; $117,000 $117,000; $78,000 20 Reed Services is organized as a limited partnership, with Steve White as one of its partners. Steve's capital account began the year with a balance of $55,000. During the year, Steve's share of the partnership income was $6,600, and Steve received $4,100 in distributions from the partnership. What is Steve's partner return on equity (rounded)? 13.0% 10.7% 5.9% 11.7% 12.0% 21.Meyers and Mastro are forming a partnership. Meyers is investing a building that has a market value of $85,000. However, the building carries a $25,000 mortgage that will be assumed by the partnership. Mastro is investing $15,000 cash. The balance of Meyers' Capital account will be: $75,000 $60,000 $25,000 $85,000 $95,000 22.Snell and Farrell are forming a partnership. Snell will invest a building that currently is being used by another business owned by Snell. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $16,500 note secured by a mortgage on that building. Farrell will invest $70,000 cash. For the partnership, the amounts to be recorded for the building and for Snell's Capital account are: Building, $73,500 and Snell, Capital, $73,500. Building, $90,000 and Snell, Capital, $90,000. Building, $16,500 and Snell, Capital, $90,000. Building, $90,000 and Snell, Capital, $73,500. Building, $73,500 and Snell, Capital, $70,000. 23. A partnership recorded the following journal entry: Cash 80,000 B.Tanner, Capital 12,000 Jackson, Capital 12,000 H.Rivera, Capital 104,000 This entry reflects: Additional investment into the partnership by B.Tanner and Jackson. Addition of a partner who pays a bonus to each of the other partners. Withdrawal of a partner who pays a $12,000 bonus to each of the other partners. Acceptance of a new partner who invests $80,000 and receives a $24,000 bonus. Withdrawal of $12,000 each by B.Tanner and Jackson upon the admission of a new partner. 24. Nguyen invested $200,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $40,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are: $24,000 to Nguyen; $6,000 to Hansen. $15,000 to Nguyen; $18,000 to Hansen. $10,000 to Nguyen; $20,000 to Hansen. $18,000 to Nguyen; $12,000 to Hansen. $6,000 to Nguyen; $24,000 to Hansen. 25.Chris and Lusy are forming a partnership. Chris is investing a building that has a market value of $89,000. However, the building carries a $26,000 mortgage that will be assumed by the partnership. Lusy is investing $12,000 cash. The balance of Chris' Capital account will be: $75,000 $89,000 $103,000 $63,000 $26,000 CLICK HERE TO GET THE ANSWER !!!! Vince, Mike, and Emily are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Vince, $18,000, Mike, $11,000, Emily, $(6,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $23,000 in cash to be distributed. Emily pays $6,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be: Vince, Capital 27,000 Mike, Capital 27,000 Emily, Capital 27,000 Cash 23,000 Cash 23,000 Emily, Capital 6,000 Vince, Capital 18,000 Mike, Capital 11,000 Vince, Capital 18,000 Mike, Capital 11,000 Emily, Capital 6,000 Cash 23,000 Vince, Capital 18,000 Mike, Capital 11,000 Cash 29,000 Vince, Capital 26,000 Mike, Capital 26,000 2. Groh and Jackson are partners. Groh's capital balance in the partnership is $67,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 10% interest. Block will invest $47,000 in the partnership. The bonus that is granted to Groh and Jackson equals: $28,600 each. 28,800 to Groh; $28,600 to Jackson. $28,800 each $14,400 each $0, because Groh and Jackson actually grant a bonus to Block. 3. Groh and Jackson are partners. $Groh's capital balance in the partnership is $69,000, and Jackson's capital balance $71,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $34,800 in the partnership. The bonus that is granted to Block equals: $8,900 $4,450 $8,700 $11,600 $0, because Block must actually grant a bonus to Groh and Jackson 4. Rice, Heburn, and Dimarco formed a partnership with Rice contributing $77,000, Heburn contributing $55,000 and Dimarco contributing $41,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $89,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Dimarco's capital account? (Do not round the intermediate answers) $28,295 $39,613 $21,092 $89,000 $77,000 5. Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $54,000, and her ending partnership capital balance for the current year is $60,000. Her share of this year's partnership income was $5,720. What is her partner return on equity (rounded)? 9.53% 10.04% 10.59% 1.05% 9.97% 6. B.Peter contributed $18,000 in cash plus office equipment valued at $7,000 to the BP Partnership. The journal entry to record the transaction for the partnership is: Cash 18000 Office Equipment 7000 Common Stock 25000 Cash 18000 Office Equipment 7000 B.Peter, Capital 25000 BP Partnership 25000 B.Peter, Capital 25000 B.Peter, Capital 25000 BP Partnership, Capital 25000 Cash 18000 Office Equipment 7000 BP Partnership 25000 7. A partnership recorded the following journal entry: Cash 70,000 M.Ken, Capital 9,000 Eric, Capital 9,000 L.Farrell, Capital 88,000 This entry reflects: Withdrawal of $9,000 each by M.Ken and Eric upon the admission of a new partner. Addition of a partner who pays a bonus to each of the other partners. Acceptance of a new partner who invests $70,000 and receives a $18,000 bonus. Additional investment into the partnership by M.Ken and Eric. Withdrawal of a partner who pays a $9,000 bonus to each of the other partners. 8. B.Tanner contributed $18,000 in cash plus office equipment valued at $6,000 to the BT Partnership. The journal entry to record the transaction for the partnership is: Cash 18000 Office Equipment 6000 BT Partnership 24000 Cash 18000 Office Equipment 6000 B.Tanner, Capital 24000 Cash 18000 Office Equipment 6000 Common Stock 24000 B.Tanner, Capital 24000 BT Partnership, Capital 24000 BT Partnership 24000 B.Tanner, Capital 24000 9. Rocky and Kingston formed a partnership with capital contributions of $600,000 and $500,000, respectively. Their partnership agreement calls for Rocky to receive a $50,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $193,000, then Rocky and Kingston's respective shares are: $77,200; $115,800 $126,500; $66,500 $96,500; $96,500 $38,600; $154,400 $115,800; $77,200 10. Web Services is organized as a limited partnership, with David White as one of its partners. David's capital account began the year with a balance of $55,000. During the year, David's share of the partnership income was $7,700, and David received $3,500 in distributions from the partnership. What is David's partner return on equity (rounded)? 15.0% 12.3% 6.7% 13.5% 14.0% 11. Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $53,000, and her ending partnership capital balance for the current year is $64,000. Her share of this year's partnership income was $5,900. What is her partner return on equity (rounded)? 9.22% 10.09% 11.13% 1.86% 9.92% 12. Rocky and Lawson are partners. Rocky's capital balance in the partnership is $69,000, and Lawson's capital balance $70,000. Rocky and Lawson have agreed to share equally in income or loss. Rocky and Lawson agree to accept Simon with a 15% interest. Simon will invest $45,000 in the partnership. The bonus that is granted to Rocky and Lawson equals: $8,700 each 17,400 to Rocky; $17,200 to Lawson. $17,400 each $17,200 each. $0, because Rocky and Lawson actually grant a bonus to Simon. 13. Chen and Ben are forming a partnership. Chen will invest a building that currently is being used by another business owned by Chen. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $21,000 note secured by a mortgage on that building. Ben will invest $80,000 cash. For the partnership, the amounts to be recorded for the building and for Chen's Capital account are: Building, $69,000 and Chen, Capital, $80,000. Building, $90,000 and Chen, Capital, $69,000. Building, $90,000 and Chen, Capital, $90,000. Building, $69,000 and Chen, Capital, $69,000. Building, $21,000 and Chen, Capital, $90,000. 14. Nguyen invested $400,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $60,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are: $30,000 to Nguyen; $0 to Hansen. $6,000 to Nguyen; $24,000 to Hansen. $24,000 to Nguyen; $6,000 to Hansen. $18,000 to Nguyen; $12,000 to Hansen. $15,000 to Nguyen; $18,000 to Hansen. 15. Helen, Rose, and Mark formed a partnership with Helen contributing $73,000, Rose contributing $55,000 and Mark contributing $39,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $94,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Mark's capital account? (Do not round the intermediate answers) $73,000 $41,090 $21,952 $30,958 $94,000 16. Nick invested $200,000 and Herald invested $100,000 in a partnership. They agreed to share incomes and losses by allowing a $20,000 per year salary allowance to Nick and a $60,000 per year salary allowance to Herald, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $20,000 in income are: $12,000 to Nick; $8,000 to Herald. $10,000 to Nick; $12,000 to Herald. $16,000 to Nick; $4,000 to Herald. $4,000 to Nick; $16,000 to Herald. $-5,000 to Nick; $25,000 to Herald. 17. Groh and Jackson are partners. $Groh's capital balance in the partnership is $66,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $35,000 in the partnership. The bonus that is granted to Block equals: $7,250 $3,625 $7,050 $11,667 $0, because Block must actually grant a bonus to Groh and Jackson 18. McCartney, Harris, and Hussin are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are McCartney, $19,000, Harris, $17,000, Hussin, $(3,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $33,000 in cash to be distributed. Hussin pays $3,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be: McCartney, Capital 34,500 Harris, Capital 34,500 Cash 33,000 McCartney, Capital 19,000 Harris, Capital 17,000 Cash 36,000 McCartney, Capital 35,000 Harris, Capital 35,000 Hussin, Capital 35,000 Cash 33,000 McCartney, Capital 19,000 Harris, Capital 17,000 Hussin, Capital 3,000 Cash 33,000 Cash 33,000 Hussin, Capital 3,000 McCartney, Capital 19,000 Harris, Capital 17,000 19. Thomas and Mathew formed a partnership with capital contributions of $400,000 and $500,000, respectively. Their partnership agreement calls for Thomas to receive a $30,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $195,000, then Thomas and Mathew's respective shares are: $107,500; $87,500 $97,500; $97,500 $39,000; $156,000 $78,000; $117,000 $117,000; $78,000 20 Reed Services is organized as a limited partnership, with Steve White as one of its partners. Steve's capital account began the year with a balance of $55,000. During the year, Steve's share of the partnership income was $6,600, and Steve received $4,100 in distributions from the partnership. What is Steve's partner return on equity (rounded)? 13.0% 10.7% 5.9% 11.7% 12.0% 21. Meyers and Mastro are forming a partnership. Meyers is investing a building that has a market value of $85,000. However, the building carries a $25,000 mortgage that will be assumed by the partnership. Mastro is investing $15,000 cash. The balance of Meyers' Capital account will be: $75,000 $60,000 $25,000 $85,000 $95,000 22. Snell and Farrell are forming a partnership. Snell will invest a building that currently is being used by another business owned by Snell. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $16,500 note secured by a mortgage on that building. Farrell will invest $70,000 cash. For the partnership, the amounts to be recorded for the building and for Snell's Capital account are: Building, $73,500 and Snell, Capital, $73,500. Building, $90,000 and Snell, Capital, $90,000. Building, $16,500 and Snell, Capital, $90,000. Building, $90,000 and Snell, Capital, $73,500. Building, $73,500 and Snell, Capital, $70,000. 23. A partnership recorded the following journal entry: Cash 80,000 B.Tanner, Capital 12,000 Jackson, Capital 12,000 H.Rivera, Capital 104,000 This entry reflects: Additional investment into the partnership by B.Tanner and Jackson. Addition of a partner who pays a bonus to each of the other partners. Withdrawal of a partner who pays a $12,000 bonus to each of the other partners. Acceptance of a new partner who invests $80,000 and receives a $24,000 bonus. Withdrawal of $12,000 each by B.Tanner and Jackson upon the admission of a new partner. 24. Nguyen invested $200,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $40,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are: $24,000 to Nguyen; $6,000 to Hansen. $15,000 to Nguyen; $18,000 to Hansen. $10,000 to Nguyen; $20,000 to Hansen. $18,000 to Nguyen; $12,000 to Hansen. $6,000 to Nguyen; $24,000 to Hansen. 25. Chris and Lusy are forming a partnership. Chris is investing a building that has a market value of $89,000. However, the building carries a $26,000 mortgage that will be assumed by the partnership. Lusy is investing $12,000 cash. The balance of Chris' Capital account will be: $75,000 $89,000 $103,000 $63,000 $26,000 CLICK HERE TO GET THE ANSWER !!!!

Vince, Mike, and Emily are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Vince, $18,000, Mike, $11,000, Emily, $(6,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $23,000 in cash to be distributed. Emily pays $6,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:

 
 
  Vince, Capital    27,000       
  Mike, Capital    27,000       
  Emily, Capital    27,000       
      Cash         23,000 

 
 
  Cash    23,000       
  Emily, Capital    6,000       
      Vince, Capital         18,000 
      Mike, Capital         11,000 

 
 
  Vince, Capital    18,000       
  Mike, Capital    11,000       
      Emily, Capital         6,000 
      Cash         23,000 

 
 
  Vince, Capital    18,000       
  Mike, Capital    11,000       
      Cash         29,000

 
 
  Vince, Capital    26,000       
  Mike, Capital    26,000       












2.
Groh and Jackson are partners. Groh's capital balance in the partnership is $67,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 10% interest. Block will invest $47,000 in the partnership. The bonus that is granted to Groh and Jackson equals:


 
$28,600 each.
 
28,800 to Groh; $28,600 to Jackson.
 
$28,800 each
 
$14,400 each
 
$0, because Groh and Jackson actually grant a bonus to Block.


3.
Groh and Jackson are partners. $Groh's capital balance in the partnership is $69,000, and Jackson's capital balance $71,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $34,800 in the partnership. The bonus that is granted to Block equals:
 
 
$8,900
 
$4,450
 
$8,700
 
$11,600
 
$0, because Block must actually grant a bonus to Groh and Jackson












4.
Rice, Heburn, and Dimarco formed a partnership with Rice contributing $77,000, Heburn contributing $55,000 and Dimarco contributing $41,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $89,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Dimarco's capital account? (Do not round the intermediate answers)
 
 
$28,295
 
$39,613
 
$21,092
 
$89,000
 
$77,000


5.
Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $54,000, and her ending partnership capital balance for the current year is $60,000. Her share of this year's partnership income was $5,720. What is her partner return on equity (rounded)?


 
9.53%
 
10.04%
 
10.59%
 
1.05%
 
9.97%











6.
B.Peter contributed $18,000 in cash plus office equipment valued at $7,000 to the BP Partnership. The journal entry to record the transaction for the partnership is:
 

 
 
  Cash    18000       
  Office Equipment    7000       
      Common Stock         25000 

 
 
  Cash    18000       
  Office Equipment    7000       
      B.Peter, Capital         25000 

 
 
  BP Partnership    25000       
      B.Peter, Capital         25000 

 
 
  B.Peter, Capital    25000       
      BP Partnership, Capital         25000 

 
 
  Cash    18000       
  Office Equipment    7000       
      BP Partnership         25000 















7. A partnership recorded the following journal entry:
  Cash    70,000       
  M.Ken, Capital    9,000       
  Eric, Capital    9,000       
      L.Farrell, Capital         88,000 

This entry reflects:

 
Withdrawal of $9,000 each by M.Ken and Eric upon the admission of a new partner.
 
Addition of a partner who pays a bonus to each of the other partners.
 
Acceptance of a new partner who invests $70,000 and receives a $18,000 bonus.
 
Additional investment into the partnership by M.Ken and Eric.
 
Withdrawal of a partner who pays a $9,000 bonus to each of the other partners.


8.
B.Tanner contributed $18,000 in cash plus office equipment valued at $6,000 to the BT Partnership. The journal entry to record the transaction for the partnership is:
 

 
 
  Cash    18000       
  Office Equipment    6000       
      BT Partnership         24000 

 
 
  Cash    18000       
  Office Equipment    6000       
      B.Tanner, Capital         24000 

 
 
  Cash    18000       
  Office Equipment    6000       
      Common Stock         24000 

 
 
  B.Tanner, Capital    24000       
      BT Partnership, Capital         24000 

 
 
  BT Partnership    24000       
      B.Tanner, Capital         24000



9.
Rocky and Kingston formed a partnership with capital contributions of $600,000 and $500,000, respectively. Their partnership agreement calls for Rocky to receive a $50,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $193,000, then Rocky and Kingston's respective shares are:


 
$77,200; $115,800
 
$126,500; $66,500
 
$96,500; $96,500
 
$38,600; $154,400
 
$115,800; $77,200


10.
Web Services is organized as a limited partnership, with David White as one of its partners. David's capital account began the year with a balance of $55,000. During the year, David's share of the partnership income was $7,700, and David received $3,500 in distributions from the partnership. What is David's partner return on equity (rounded)?
 
 
15.0%
 
12.3%
 
6.7%
 
13.5%
 
14.0%


11.
Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $53,000, and her ending partnership capital balance for the current year is $64,000. Her share of this year's partnership income was $5,900. What is her partner return on equity (rounded)?

 
9.22%
 
10.09%
 
11.13%
 
1.86%
 
9.92%


12.
Rocky and Lawson are partners. Rocky's capital balance in the partnership is $69,000, and Lawson's capital balance $70,000. Rocky and Lawson have agreed to share equally in income or loss. Rocky and Lawson agree to accept Simon with a 15% interest. Simon will invest $45,000 in the partnership. The bonus that is granted to Rocky and Lawson equals:


 
$8,700 each
 
17,400 to Rocky; $17,200 to Lawson.
 
$17,400 each
 
$17,200 each.
 
$0, because Rocky and Lawson actually grant a bonus to Simon.










13.
Chen and Ben are forming a partnership. Chen will invest a building that currently is being used by another business owned by Chen. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $21,000 note secured by a mortgage on that building. Ben will invest $80,000 cash. For the partnership, the amounts to be recorded for the building and for Chen's Capital account are:
 
Building, $69,000 and Chen, Capital, $80,000.
 
Building, $90,000 and Chen, Capital, $69,000.
 
Building, $90,000 and Chen, Capital, $90,000.
 
Building, $69,000 and Chen, Capital, $69,000.
 
Building, $21,000 and Chen, Capital, $90,000.


14.
Nguyen invested $400,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $60,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are:



 
$30,000 to Nguyen; $0 to Hansen.
 
$6,000 to Nguyen; $24,000 to Hansen.
 
$24,000 to Nguyen; $6,000 to Hansen.
 
$18,000 to Nguyen; $12,000 to Hansen.
 
$15,000 to Nguyen; $18,000 to Hansen.











15.
Helen, Rose, and Mark formed a partnership with Helen contributing $73,000, Rose contributing $55,000 and Mark contributing $39,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $94,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Mark's capital account? (Do not round the intermediate answers)
 

 
$73,000
 
$41,090
 
$21,952
 
$30,958
 
$94,000


16.
Nick invested $200,000 and Herald invested $100,000 in a partnership. They agreed to share incomes and losses by allowing a $20,000 per year salary allowance to Nick and a $60,000 per year salary allowance to Herald, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $20,000 in income are:

 
$12,000 to Nick; $8,000 to Herald.
 
$10,000 to Nick; $12,000 to Herald.
 
$16,000 to Nick; $4,000 to Herald.
 
$4,000 to Nick; $16,000 to Herald.
 
$-5,000 to Nick; $25,000 to Herald.











17.
Groh and Jackson are partners. $Groh's capital balance in the partnership is $66,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $35,000 in the partnership. The bonus that is granted to Block equals:
 
 
$7,250
 
$3,625
 
$7,050
 
$11,667
 
$0, because Block must actually grant a bonus to Groh and Jackson


18.
McCartney, Harris, and Hussin are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are McCartney, $19,000, Harris, $17,000, Hussin, $(3,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $33,000 in cash to be distributed. Hussin pays $3,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:

 
 
  McCartney, Capital    34,500       
  Harris, Capital    34,500       
      Cash         33,000 

 
 
  McCartney, Capital    19,000       
  Harris, Capital    17,000       
      Cash         36,000

 
 
  McCartney, Capital    35,000       
  Harris, Capital    35,000       
  Hussin, Capital    35,000       
      Cash         33,000 

 
 
  McCartney, Capital    19,000       
  Harris, Capital    17,000       
      Hussin, Capital         3,000 
      Cash         33,000 

 
 
  Cash    33,000       
  Hussin, Capital    3,000       
      McCartney, Capital         19,000 
      Harris, Capital         17,000 



19.
Thomas and Mathew formed a partnership with capital contributions of $400,000 and $500,000, respectively. Their partnership agreement calls for Thomas to receive a $30,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $195,000, then Thomas and Mathew's respective shares are:


 
$107,500; $87,500
 
$97,500; $97,500
 
$39,000; $156,000
 
$78,000; $117,000
 
$117,000; $78,000


20
Reed Services is organized as a limited partnership, with Steve White as one of its partners. Steve's capital account began the year with a balance of $55,000. During the year, Steve's share of the partnership income was $6,600, and Steve received $4,100 in distributions from the partnership. What is Steve's partner return on equity (rounded)?
 

 
13.0%
 
10.7%
 
5.9%
 
11.7%
 
12.0%


21.
Meyers and Mastro are forming a partnership. Meyers is investing a building that has a market value of $85,000. However, the building carries a $25,000 mortgage that will be assumed by the partnership. Mastro is investing $15,000 cash. The balance of Meyers' Capital account will be:


 
$75,000
 
$60,000
 
$25,000
 
$85,000
 
$95,000


22.
Snell and Farrell are forming a partnership. Snell will invest a building that currently is being used by another business owned by Snell. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $16,500 note secured by a mortgage on that building. Farrell will invest $70,000 cash. For the partnership, the amounts to be recorded for the building and for Snell's Capital account are:


 
Building, $73,500 and Snell, Capital, $73,500.
 
Building, $90,000 and Snell, Capital, $90,000.
 
Building, $16,500 and Snell, Capital, $90,000.
 
Building, $90,000 and Snell, Capital, $73,500.
 
Building, $73,500 and Snell, Capital, $70,000.











23. A partnership recorded the following journal entry:
  Cash    80,000       
  B.Tanner, Capital    12,000       
  Jackson, Capital    12,000       
      H.Rivera, Capital         104,000 

This entry reflects:

 
Additional investment into the partnership by B.Tanner and Jackson.
 
Addition of a partner who pays a bonus to each of the other partners.
 
Withdrawal of a partner who pays a $12,000 bonus to each of the other partners.
 
Acceptance of a new partner who invests $80,000 and receives a $24,000 bonus.
 
Withdrawal of $12,000 each by B.Tanner and Jackson upon the admission of a new partner.


24.
Nguyen invested $200,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $40,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are:



 
$24,000 to Nguyen; $6,000 to Hansen.
 
$15,000 to Nguyen; $18,000 to Hansen.
 
$10,000 to Nguyen; $20,000 to Hansen.
 
$18,000 to Nguyen; $12,000 to Hansen.
 
$6,000 to Nguyen; $24,000 to Hansen.





25.
Chris and Lusy are forming a partnership. Chris is investing a building that has a market value of $89,000. However, the building carries a $26,000 mortgage that will be assumed by the partnership. Lusy is investing $12,000 cash. The balance of Chris' Capital account will be:


 
$75,000
 
$89,000
 
$103,000
 
$63,000
 
$26,000


                                        


CLICK HERE TO GET THE ANSWER !!!!

Jetson Co. sold 20,300 units of its only product and incurred a $78,798 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2012’s activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $153,000. The maximum output capacity of the company is 40,000 units per year.

Jetson Co. sold 20,300 units of its only product and incurred a $78,798 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2012’s activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $153,000. The maximum output capacity of the company is 40,000 units per year.

  

JETSON COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011
Sales		$	767,340
Variable costs			537,138
Contribution margin			230,202
Fixed costs			309,000
Net loss		$	(78,798	)

 

1.	Compute the break-even point in dollar sales for year 2011. (Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)
2.	Compute the predicted break-even point in dollar sales for year 2012 assuming the machine is installed and there is no change in the unit sales price. (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount. Omit the "$" sign in your response.)
3.	Prepare a forecasted contribution margin income statement for 2012 that shows the expected results with the machine installed. Assume that the unit sales price and the number of units sold (20,300 units) will not change, and no income taxes will be due. (Input all amounts as positive values. Omit the "$" sign in your response.)
4.	Compute the sales level required in both dollars and units to earn $161,000 of after-tax income in 2012 with the machine installed and no change in the unit sales price. Assume that the income tax rate is 30%. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number. Omit the "$" sign in your response.)
5.	Prepare a forecasted contribution margin income statement that shows the results at the sales level computed in part 4. Assume an income tax rate of 30%. (Input all amounts as positive values. Round your "Sales level required in units" to nearest whole number. Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number. Omit the "$" sign in your response.)

CLICK HERE TO GET THE ANSWER !!!!

The Caltor Company gathered the following condensed data for the year ended December 31, 2010: Cost of goods sold $ 710,000 Net sales 1,279,000 Administrative expenses 239,000 Interest expense 68,000 Dividends paid 38,000 Selling expenses 45,000 Instructions: Prepare a multiple-step income statement for the year ended December 31, 2010. Compute the profit margin ratio and gross profit rate. Caltor Company s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations and explain your findings.

The Caltor Company gathered the following condensed data for the year ended December 31, 2010:

Cost of goods sold                            $ 710,000
Net sales                                         1,279,000
Administrative expenses                      239,000
Interest expense                                   68,000
Dividends paid                                      38,000
Selling expenses                                  45,000

Instructions:

1. Prepare a multiple-step income statement for the year ended December 31, 2010.
2. Compute the profit margin ratio and gross profit rate. Caltor Company s assets at the beginning of the year were $770,000 and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your computations and explain your findings.

CLICK HERE TO GET THE ANSWER !!!!

Describe the process of preparing a trial balance. What is the purpose of preparing a trial balance? If a trial balance does not balance, identify what might be the reasons why it does not balance. If the trial balance does balance, does that insure that the ledger accounts are correct? Explain.

Describe the process of preparing a trial balance. What is the purpose of preparing a trial balance? If a trial balance does not balance, identify what might be the reasons why it does not balance. If the trial balance does balance, does that insure that the ledger accounts are correct? Explain.

CLICK HERE TO GET THE ANSWER !!!!

Jamie Company recorded the following cash transactions for the year: Paid $70,000 for salaries. Paid $20,000 to purchase office equipment. Paid $6,000 for utilities. Paid $7,000 in dividends. Collected $130,000 from customers. What was Jamie's net cash provided by operating activities? $47,000 $54,000 $27,000 $33,000

Jamie Company recorded the following cash transactions for the year:

Paid $70,000 for salaries.
Paid $20,000 to purchase office equipment.
Paid $6,000 for utilities.
Paid $7,000 in dividends.
Collected $130,000 from customers.

What was Jamie's net cash provided by operating activities?

     $47,000

      $54,000

      $27,000

     $33,000



                                        

CLICK HERE TO GET THE ANSWER !!!!

Resources owned by a business are referred to as: stockholders' equity. liabilities. assets. revenues.

Resources owned by a business are referred to as:

•      stockholders' equity.
•      liabilities.
•        assets.
•      revenues.

CLICK HERE TO GET THE ANSWER !!!!

The statement of cash flows would disclose the payment of a dividend: nowhere on the statement. in the operating activities section. in the investing activities section. in the financing activities section.

The statement of cash flows would disclose the payment of a dividend:

•               nowhere on the statement.
•               in the operating activities section.
•               in the investing activities section.
•               in the financing activities section.                                        

CLICK HERE TO GET THE ANSWER !!!!

Borrowing money is an example of a(n): delivering activity. financing activity. investing activity. operating activity.

Borrowing money is an example of a(n):

•               delivering activity.
•                financing activity.
•               investing activity.
•               operating activity.                                         

CLICK HERE TO GET THE ANSWER !!!!

External users want answers to all of the following questions except: Is the company earning satisfactory income? Will the company be able to pay its debts as they come due? Did the company use a budget to plan its expenses? How does the company compare in profitability with competitors?

External users want answers to all of the following questions except:

•           Is the company earning satisfactory income?
•           Will the company be able to pay its debts as they come due?
•            Did the company use a budget to plan its expenses?
•           How does the company compare in profitability with competitors?

CLICK HERE TO GET THE ANSWER !!!!

LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The President is waiting to hear from you if this is a necessary purchase before authorizing. On payday, the checks are picked up by the accountant and left in his office for pick-up. Before he leaves for the weekend, he will move the checks into a safe in his office. The President is still quite embarrassed because he had to fire one of his employees for viewing pornography on a company computer. He later found out this individual was a convicted felon who served time for molesting children. The company had a hard time getting the employee to admit it was him because the company does not assign individual passwords. The President expressed his frustration because both he and the accountant both interview and approve all of the new hires. Required: Based on the above information, prepare a Word document to address the following: 1. Inform the President of any new internal control requirements if the company decides to go public. (7 points) 2. Advise the President of what the company is doing right (they are doing some things well) and also recommend to the President whether or not they should buy the indelible ink machine. When you advise the President, please be sure to reference the applicable internal control principle that applies. (13 points) 3. Advise the President of what the company is doing wrong (they are definitely doing some things poorly). Please be sure to include the internal control principle that is being violated along with a recommendation for improvement. (20 points) You must prepare a formal report for the partner to distribute to the President so no abbreviations or short-hand answers. You also must cite your references. At a minimum, your textbook should be cited.

LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future.  The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. 

Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash.

The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The President is waiting to hear from you if this is a necessary purchase before authorizing.

On payday, the checks are picked up by the accountant and left in his office for pick-up. Before he leaves for the weekend, he will move the checks into a safe in his office.

The President is still quite embarrassed because he had to fire one of his employees for viewing pornography on a company computer. He later found out this individual was a convicted felon who served time for molesting children. The company had a hard time getting the employee to admit it was him because the company does not assign individual passwords. The President expressed his frustration because both he and the accountant both interview and approve all of the new hires.

Required: 

Based on the above information, prepare a Word document to address the following:

1.      Inform the President of any new internal control requirements if the company decides to go public. (7 points)

 

2.      Advise the President of what the company is doing right (they are doing some things well) and also recommend to the President whether or not they should buy the indelible ink machine.  When you advise the President, please be sure to reference the applicable internal control principle that applies. (13 points)

 

3.      Advise the President of what the company is doing wrong (they are definitely doing some things poorly). Please be sure to include the internal control principle that is being violated along with a recommendation for improvement. (20 points)

 

You must prepare a formal report for the partner to distribute to the President so no abbreviations or short-hand answers. You also must cite your references. At a minimum, your textbook should be cited.

CLICK HERE TO GET THE ANSWER !!!!

The LBJ Company has budgeted sales revenues as follows: April May June Credit sales $94,000 $89,500 $75,000 Cash sales 48,000 75,000 57,000 Total sales $142,000 $164,500 $132,000 Past experience indicates that 30% of the credit sales will be collected in the month of sale and the remaining 70% will be collected in the following month. Purchases of inventory are all on credit and 40% is paid in the month of purchase and 60% in the month following purchase. Budgeted inventory purchases are $195,000 in April, $135,000 in May, and $63,000 in June.

The LBJ Company has budgeted sales revenues as follows:

 

                                                                        April               May             June

Credit sales                                                   $94,000           $89,500          $75,000

Cash sales                                                      48,000            75,000            57,000

Total sales                                                  $142,000         $164,500        $132,000

 

Past experience indicates that 30% of the credit sales will be collected in the month of sale and the remaining 70% will be collected in the following month.

 

Purchases of inventory are all on credit and 40% is paid in the month of purchase and 60% in the month following purchase. Budgeted inventory purchases are $195,000 in April, $135,000 in May, and $63,000 in June.

 

Other budgeted cash receipts:  (a) sale of plant assets for $33,000 in May, and (b) sale of new common stock for $50,000 in June.  Other budgeted cash disbursements:  (a) operating expenses of $15,000 each month, (b) selling and administrative expenses of $10,150 each month, (c) purchase of equipment for $19,000 cash in June, and (d) dividends of $20,000 will be paid in June.

 

The company has a cash balance of $20,000 at the beginning of May and wishes to maintain a minimum cash balance of $20,000 at the end of each month.  An open line of credit is available at the bank and carries an annual interest rate of 10%.  Assume that all borrowing is done on the first day of the month in which financing is needed and that all repayments are made on the last day of the month in which excess cash is available.  Also assume that there is no outstanding financing as of May 1.

 

Requirements:

 

1.  Use this information to prepare a Cash Budget for the months of May and June, using the template provided in Doc Sharing.

 

2.  What are the three sections of a Cash Budget, and what is included in each section?

 

3.  Why is a Cash Budget so vital to a company?

 

4.  What are the five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash?

CLICK HERE TO GET THE ANSWER !!!!

Detta corporation purchased new equipment on October 1,2010, for $575,000, the machine was expted to have usefull life for 4 years, or 1,400 prating hours, and a salvage value of $5,000. The equipment was operated for 600hours during 2010 and 4,000 hours in 2011. Calculate the depreciation expense for calendar year 2010 and 2011. Under each following four methods : (1)Straight Line: 2010 ___________ 2011________________ (2) Units of production 2010_______________ 2011_______________ (3) SYD 2010________________ 2011_________________ (4) DDB 2010_______________ 2011__________________ Problem #2 On December 1,2010 company acquired a new delivery truck in exchange for each and a old delivery truck that it had acquired in 2001. The old truck was purchased for $20,000 and had an updated book value of $7,600 on the date of the exchange. At the date the old truck had a market value of $8,000, In addition High paid $26,000 cash for the new truck, which had a list price of $36,000.

Detta corporation purchased new equipment on October 1,2010, for $575,000, the machine was expted to have usefull life for 4 years, or 1,400 prating hours, and a salvage value of $5,000. The equipment was operated for 600hours during 2010 and 4,000 hours in 2011.
Calculate the depreciation expense for calendar year 2010 and 2011.
Under each following four methods :
(1)Straight Line:
2010 ___________ 2011________________

(2) Units of production
2010_______________ 2011_______________
(3) SYD
2010________________ 2011_________________
(4) DDB
2010_______________ 2011__________________








Problem #2
On December 1,2010 company acquired a new delivery truck in exchange for each and a old delivery truck that it had acquired in 2001. The old truck was purchased for $20,000 and had an updated book value of $7,600 on the date of the exchange. At the date the old truck had a market value of $8,000, In addition High paid $26,000 cash for the new truck, which had a list price of $36,000.

* Required- prepare the journal entry necessary to record this equipment trade in.

CLICK HERE TO GET THE ANSWER !!!!

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials—2 pound plastic at $6.88 per pound $ 13.76 Direct labor—1.50 hours at $12.00 per hour 18.00 Variable manufacturing overhead 8.25 Fixed manufacturing overhead 9.75 Total standard cost per unit $49.76

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials—2 pound plastic at $6.88 per pound		$ 13.76
Direct labor—1.50 hours at $12.00 per hour		18.00
Variable manufacturing overhead		8.25
Fixed manufacturing overhead		9.75
Total standard cost per unit		$49.76

The predetermined manufacturing overhead rate is $12 per direct labor hour ($18.00 ÷ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 7,950 direct labor hours (5,300 units) for the month. The master budget showed total variable costs of $43,725 ($5.50 per hour) and total fixed overhead costs of $51,675 ($6.50 per hour). Actual costs for October in producing 3,800 units were as follows.

Direct materials (7,770 pounds)		$ 55,478
Direct labor (5,580 hours)		68,578
Variable overhead		52,187
Fixed overhead		18,203
Total manufacturing costs		$194,446

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

(a) Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

CLICK HERE TO GET THE ANSWER !!!!

The comparative statements of Lucille Company are presented here. LUCILLE COMPANY Income Statements For the Years Ended December 31 2012 2011 Net sales $1,899,175 $1,759,135 Cost of goods sold 1,067,175 1,014,635 Gross profit 832,000 744,500 Selling and administrative expenses 508,635 487,635 Income from operations 323,365 256,865

Problem 13-2A

 

The comparative statements of Lucille Company are presented here.

LUCILLE COMPANY Income Statements For the Years Ended December 31
		2012		2011
Net sales		$1,899,175		$1,759,135
Cost of goods sold		1,067,175		1,014,635
Gross profit		832,000		744,500
Selling and administrative expenses		508,635		487,635
Income from operations		323,365		256,865
Other expenses and losses
Interest expense		23,181		21,181
Income before income taxes		300,184		235,684
Income tax expense		93,181		74,181
Net income		$ 207,003		$ 161,503

 

LUCILLE COMPANY Balance Sheets December 31
Assets		2012		2011
Current assets
Cash		$ 60,100		$ 64,200
Short-term investments		74,000		50,000
Accounts receivable		126,435		111,435
Inventory		127,181		116,681
Total current assets		387,716		342,316
Plant assets (net)		659,726		531,026
Total assets		$1,047,442		$873,342
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 168,635		$154,035
Income taxes payable		44,681		43,181
Total current liabilities		213,316		197,216
Bonds payable		230,726		210,726
Total liabilities		444,042		407,942
Stockholders’ equity
Common stock ($5 par)		290,000		300,000
Retained earnings		313,400		165,400
Total stockholders’ equity		603,400		465,400
Total liabilities and stockholders’ equity		$1,047,442		$873,342

All sales were on account. Net cash provided by operating activities for 2012 was $235,950. Capital expenditures were $136,690, and cash dividends were $59,003.

Compute the following ratios for 2012. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

(a)		Earnings per share		$
(b)		Return on common stockholders’ equity			%
(c)		Return on assets			%
(d)		Current ratio			:1
(e)		Receivables turnover			times
(f)		Average collection period			days
(g)		Inventory turnover			times
(h)		Days in inventory			days
(i)		Times interest earned			times
(j)		Asset turnover			times
(k)		Debt to total assets			%
(l)		Current cash debt coverage			times
(m)		Cash debt coverage			times
(n)		Free cash flow		$

 

 

CLICK HERE TO GET THE ANSWER !!!!