CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Ex. 12–19
a. Cash balance………………………………………………
…
$35,000
Hewitt Patel
Capital balances before realization……………………
…
$28,000 $18,000
b. Division of loss on realization*…………………………
…
5,500 5,500
…
…
Ex. 12–20
Oliver Ansari Total
Capital balances before realization………
…
$28,000 $35,000 $63,000
Division of gain on realization
Ex. 12–21
a. Deficiency
b. $97,500 ($73,500 + $41,000 – $17,000)
c. Cash
Fowler, Capital
17,000
17,000
…
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Ex. 12–22
a. Cash should be distributed as indicated in the following tabulation:
Bray Lincoln Mapes Total
Capital invested……
…
$225 $300 $ — $ 525
b. Mapes has a capital deficiency of $75, as indicated in the following
tabulation:
Bray Lincoln Mapes Total
Capital invested……
…
$225 $300 $— $525
Ex. 12–23
Nettles King Tanaka
Capital balances after realization…
…
$(15,000) $ 46,000 $71,000
…
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Ex. 12–24
Noncash Gold Porter Sims
Cash Assets Liabilities (3/6) (2/6) (1/6)
Balances before realization $ 56,000 $ 96,000 $32,000 $55,000 $45,000 $20,000
Sale of assets and division of loss +90,000 –96,000 —–3,000 –2,000 –1,000
+= + + +
GOLD, PORTER, AND SIMS
Statement of Partnership Liquidation
For the Period Ending July 1–29, 2016
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Ex. 12–25
a.
Noncash Lester Torres Hearst
Cash Assets Liabilities (2/5) (2/5) (1/5)
Balances before realization $ 26,000 $146,000 $35,000 $49,000 $61,000 $27,000
Sale of assets and division of gain +158,000 –146,000 —+4,800 +4,800 +2,400
Member Equity
=+ ++
ARCADIA SALES, LLC
Statement of LLC Liquidation
For the Period August 1–31, 2016
+
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Ex. 12–26
a. (1) Income Summary
Angel Alvarez, Capital
Emma Allison, Capital
b.
Total
Capital, January 1, 2016 $120,000
Additional investment during the year 8,000
62,000
Angel
Alvarez
31,000
31,000
$47,000
8,000
Emma
ALVAREZ AND ALLISON
Statement of Partnership Equity
Allison
For the Year Ended December 31, 2016
$ 73,000
—
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Ex. 12–27
$13,100,000,000
46,243
b. The revenues increased between the two years from $11.9 billion to $13.1 billion, or
10.1% [($13.1 – $11.9) ÷ $11.9]. Revenues have increased sharply during this period.
Ex. 12–28
$16,200,000
150
b. Revenues decreased between the two years; however, the number of employees has
has decreased at a faster rate. Thus, the revenue per employee increased from
$92,000 in 2016 to $108,000 in 2017. This indicates that the efficiency of the firm has
Revenue per employee, 2017:
$108,000
$283,286
a.
a. =
=Revenue per professional staff, current year:
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Prob. 12–1A
1. Mar. 1 Cash 21,100
Merchandise Inventory 55,900
Eric Keene, Capital 77,000
2.
Current assets:
Cash $60,700
Accounts receivable $18,000
Current liabilities:
Eric Keene, capital $77,000
Abigail McKee, capital 60,000
PROBLEMS
Assets
Liabilities
Partners’ Equity
KEENE AND MCKEE
Balance Sheet
March 1, 2016
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Prob. 12–1A (Concluded)
3. 28 Income Summary
Eric Keene, Capital*
Abigail McKee, Capital*
Feb.
90,000
41,900
48,100
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Prob. 12–2A
Plan Morrison Amato Morrison Amato
a. ……………………………………
…
$52,500 $52,500 $ 90,000 $ 90,000
Details:
a. Net income (1:1)………………
…
$52,500 $52,500 $ 90,000 $ 90,000
b. Net income (3:1)………………
…
$78,750 $26,250 $135,000 $ 45,000
…
…
…
…
f. Interest allowance……………
…
$18,000 $ 6,000 $ 18,000 $ 6,000
Salary allowance………………
…
30,000 64,000 30,000 64,000
$105,000 $180,000
Morrison Amato Morrison Amato
$105,000 $180,000
(1) (2)
…
…
…
…
…
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Prob. 12–3A
1.
Professional fees
Operating expenses:
Salary expense
Depreciation expense—building
Total
Division of net income:
Salary allowance……………………………
…
$45,000 $54,700 $ 99,700
2.
Capital, January 1, 2016
Additional investment during
Lambert Yost
LAMBERT AND YOST
Statement of Partnership Equity
For the Year Ended December 31, 2016
LAMBERT AND YOST
Income Statement
For the Year Ended December 31, 2016
$154,500
15,700
$395,300
Tyler
Lambert
Jayla
JaylaTyler
$ 78,000 $213,000
$135,000
Yost
Total
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Prob. 12–3A (Concluded)
3.
Current assets:
Cash $ 34,000
Accounts receivable 47,800
Supplies 2,000
LAMBERT AND YOST
Balance Sheet
December 31, 2016
Assets
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Prob. 12–4A
1. June 30 Asset Revaluations 2,900
Accounts Receivable 2,500
Allowance for Doubtful Accounts 400
[($42,500 – $2,500) × 5%] – $1,600.
30 Merchandise Inventory 4,600
Asset Revaluations 4,600
$76,600 – $72,000.
30 Accumulated Depreciation—Equipment 43,100
Equipment 24,800
CHAPTER 12 Accounting for Partnerships and Limited Liability Companies
Prob. 12–4A (Concluded)
3.
Current assets:
Cash1$ 53,000
Accounts receivable $40,000
Less allowance for doubtful accounts 2,000 38,000
MOSHREF, HOLLINS, AND ANDERSON
Balance Sheet
July 1, 2016
Assets
1.
Noncash Gerloff Chu Jewett
Cash Assets Liabilities (2/4) (1/4) (1/4)
Balances before realization $ 5,200 $55,900 $15,000 $19,300 $4,500 $22,300
a. Sale of assets and division of loss +34,300 –55,900 —–10,800 –5,400 –5,400
Balances after realization $39,500 $0$15,000 $ 8,500 $ (900) $16,900
GERLOFF, CHU, AND JEWETT
Statement of Partnership Liquidation
For Period February 3–28, 2016
+=+
Capital
+
+
1. a.
Noncash Sails Welch Greenberg
Cash Assets Liabilities (2/5) (2/5) (1/5)
Balances before realization $ 32,000 $128,000 $20,000 $58,000 $72,000 $10,000
Sale of assets and division of gain +156,000 –128,000 —+11,200 +11,200 +5,600
SAILS, WELCH, AND GREENBERG
Statement of Partnership Liquidation
For Period November 1–30, 2016
Capital
++=++