Title: Problem 12-5A
QA_Ori:
Note: All entries in this problem are dated May 31.
1.
(a) Cash 600,000
(b) Gain on Sale of Inventory 62,800
(c) Accounts Payable 245,500
Cash 245,500
(d) Kendra, Capital ($93,000+ $31,400) 124,400
2.
(a) Cash 500,000
Loss on Sale of Inventory 37,200
Inventory 537,200
(b) Kendra, Capital ($37,200 x 3/6) 18,600
(c) Accounts Payable 245,500
(d) Kendra, Capital ($93,000 – $18,600) 74,400
3.
(a) Cash 320,000
(b) Kendra, Capital ($217,200 x 3/6) 108,600
(c) Accounts Payable 245,500
Cash 245,500
(d) Cogley, Capital ($212,500 – $72,400) 140,100
4.
(a) Cash 250,000
(b) Kendra, Capital ($287,200 x 3/6) 143,600
(c) Accounts Payable 245,500
Cash 245,500
(d) Cogley, Capital* 83,034
Title: Problem 12-1B
QA_Ori:
1.
Dec. 31 Income Summary 270,000
2.
Dec. 31 Income Summary 270,000
Mark Albin, Capital 135,000
3.
Dec. 31 Income Summary 270,000
To close Income Summary.*
*Supporting calculations Albin Peters Ramse
y
Total
Net income $270,00
0
19,200
0
0
0
Title: Problem 12-2B
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
Bell
Green
(a)
(b)
(c)
Salary allowance
$ 48,000
40% x ($36,000 loss + $48,000 salary)
$(33,600)
(d)
Salary allowance
$ 48,000
Income (Loss)
Year 2
Sharing Plan
Calculations
Bell
Green
(a)
(b)
25% x $76,000 income
$19,000
(c)
Salary allowance
(d)
Salary allowance
Totals
Income (Loss)
Year 3
Sharing Plan
Calculations
Bell
Green
(a)
(b)
(c)
Salary allowance
(d)
Salary allowance
Title: Problem 12-3B
QA_Ori:
Part 1
Income
(Loss)
Sharing Plan
Calculations Cook Xi
Schwartz
Total
0
0
(c) Net income $240,000
Salary allowances $40,000 $ 30,000 $ 80,000 (150,000)
Balance of income 90,000
Part 2
CXS PARTNERSHIP
Statement of Partners’ Equity
For Year Ended December 31
Cook Xi Schwartz Total
Beginning capital balances $ 0 $ 0 $ 0 $ 0
Plus
Investments by owners 144,000 216,000 120,000 480,000
Part 3
QA_Ori:
Dec.
31
Income Summary 87,600
Cook, Capital 17,280
Dec. 31 Cook, Capital 18,000
Xi, Capital 38,000
Title: Problem 12-4B
QA_Ori:
Part 1
a)
Apr. 30 Gibbs, Capital 606,000
b)
Apr. 30 Gibbs, Capital 606,000
c)
Apr. 30 Gibbs, Capital 606,000
d)
Apr. 30 Gibbs, Capital 606,000
Cook, Capital* 51,200
e)
Apr. 30 Gibbs, Capital 606,000
Accum. Deprec.—Manufacturing Equipment 336,000
Part 2
a)
Apr. 30 Cash 300,000
b)
Apr. 30 Cash 196,000
To record Chip’s admission and bonus.
* Supporting calculations
c)
Apr. 30 Cash 426,000
Gibbs, Capital ($100,800* x 5/10) 50,400
To record admission of Chip and bonus
to old partners.
* Supporting calculations
Thus, the old partners receive a bonus.