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735
Problem 12-5A (50 minutes)
Part 1
a)
Feb. 1
Benson, Capital ........................................................
138,000
e)
Feb. 1
Benson, Capital ........................................................
138,000
736
Problem 12-5A (Concluded)
Part 2
a)
Feb. 1
Cash ..........................................................................
200,000
b)
Feb. 1
Cash ..........................................................................
145,000
c)
Feb. 1
Cash ..........................................................................
262,000
737
Problem 12-6A (75 minutes)
Note: All entries in this problem are dated May 31.
1.
2.
738
Problem 12-6A (Concluded)
3.
(a)
Cash ..........................................................................
320,000
4.
(a)
Cash ..........................................................................
250,000
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 12
PROBLEM SET B
Problem 12-1B (30 minutes)
Cash ..........................................................................................
200
Supplies ....................................................................................
600
740
Problem 12-2B (45 minutes)
Preliminary calculations
Plan (a) & Plan (c)
Percentages based on initial investments
Bell = $104,000/$260,000 = 40%
Income (Loss)
Year 1
Sharing Plan
Calculations
Bell
Green
(a)
40% x $36,000 loss ...................................................
$(14,400)
741
Problem 12-2B (Concluded)
Income (Loss)
Year 2
Sharing Plan
Calculations
Bell
Green
Income (Loss)
Year 3
Sharing Plan
Calculations
Bell
Green
(a)
40% x $188,000 income ................................
$75,200
60% x $188,000 income ................................
$112,800
742
Problem 12-3B (50 minutes)
1.
Dec. 31
Income Summary .....................................................
270,000
2.
Dec. 31
Income Summary .....................................................
270,000
Andy Albin, Capital ............................................
135,000
3.
Dec. 31
Income Summary .....................................................
270,000
Andy Albin, Capital ............................................
118,800
*Supporting calculations
Albin
Peters
Ramsey
Total
Net income ................................................
$270,000
743
Problem 12-4B (30 minutes)
Part 1
Income (Loss)
Sharing Plan
Calculations
Cook
Jing
Schwartz
Total
(c)
Net income ..................................................
$240,000
744
Problem 12-4B (Concluded)
Part 2
CJS PARTNERSHIP
Statement of Partners’ Equity
For Year Ended December 31
Cook
Jing
Schwartz
Total
Beginning capital balances .................
$ 0
$ 0
$ 0
$ 0
Plus
Part 3
Dec. 31
Income Summary .....................................................
87,600
745
Problem 12-5B (50 minutes)
Part 1
a)
Apr. 30
Gibbs, Capital ...........................................................
606,000
b)
Apr. 30
Gibbs, Capital ...........................................................
606,000
c)
d)
Apr. 30
Gibbs, Capital ...........................................................
606,000
e)
746
Problem 12-5B (Concluded)
Part 2
a)
b)
Apr. 30
Cash ..........................................................................
196,000
c)
Apr. 30
Cash ..........................................................................
426,000
