Title: Exercise 12-11
QA_Ori:
a. Loss from selling assets
Total book value of assets $126,000
b. Loss and deficit allocation
Turner Roth Lowe Total
Capital balances before loss $ 2,500 $ 14,000 $ 31,500 $ 48,000
Allocation of loss
$76,000 x 1/10 (7,600)
Allocation of Lowe’s deficit
to Turner and Roth
c. Liability to be paid
Title: Exercise 12-12
QA_Ori:
Rugged Sports Enterprises LP:
Hockey LP:
Football LP:
Title: Problem 12-1A
QA_Ori:
1.
Dec. 31 Income Summary 249,000
2.
Dec. 31 Income Summary 249,000
Kara Ries, Capital 62,250
3.
Dec. 31 Income Summary 249,000
Kara Ries, Capital 79,000
Tammy Bax, Capital 72,200
15,000
0
Title: Problem 12-2A
QA_Ori:
Preliminary calculations
Plan (a) & Plan (c) Percentages based on initial investments
Plan (b) Percentages based on time
Plan (c) & Plan (d) Salary allowance
Plan (d) Interest allowances
Income
(Loss)
Year 1
Sharing Plan Calculations Watts Lyon
(a) 40% x $36,000 loss $(14,400)
60% x $36,000 loss $(21,600)
Income
(Loss)
Year 2
Sharing Plan Calculations Watts Lyon
(a) 40% x $90,000 income $36,000
60% x $90,000 income $54,000
Income
(Loss)
Year 3
Sharing Plan Calculations Watts Lyon
(a) 40% x $150,000 income $60,000
60% x $150,000 income $ 90,000
Title: Problem 12-3A
QA_Ori:
Part 1
Income
(Loss)
Sharing
Plan
Calculations Bill Bruce Barb Total
(b) $450,000 x ($67,500/$750,000) 40,500
(c) Net income $450,000
Salary allowances $ 80,000 $ 60,000 $ 90,000 (230,000)
Part 2
BBB PARTNERSHIP
Statement of Partners’ Equity
For Year Ended December 31
Bill Bruce Barb Total
Beginning capital balances $ 0 $ 0 $ 0 $ 0
Plus
20%:40%:40%*
Part 3
QA_Ori:
Dec. 31 Income Summary 209,000
Bill Beck, Capital 67,550
Dec. 31 Bill Beck, Capital 34,000
Title: Problem 12-4A
QA_Ori:
Part 1
a)
Feb. 1 Benson, Capital 138,000
b)
Feb. 1 Benson, Capital 138,000
c)
Feb. 1 Benson, Capital 138,000
d)
Feb. 1 Benson, Capital 138,000
e)
Feb. 1 Benson, Capital 138,000
Accumulated Depreciation—Equipment 23,200
Part 2
a)
Feb. 1 Cash 200,000
Rhodes, Capital* 200,000
To record admission of Rhodes.
b)
Feb. 1 Cash 145,000
Meir, Capital ($41,250* x 3/10) 12,375
c)
Feb. 1 Cash 262,000
Meir, Capital ($46,500* x 3/10) 13,950
To record admission of Rhodes and bonus to old partners.
* Supporting calculations