Accounting Chapter 12 Homework Income Summary Eric Keene Capital Abigail Mckee

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Ex. 12–19

a. Cash balance………………………………………………

…

$19,000

Ex. 12–20

Oliver Ansari Total

Capital balances before realization………

…

$28,000 $35,000 $63,000

Division of gain on realization

Ex. 12–21

12-21

…

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Ex. 12–22

a. Cash should be distributed as indicated in the following tabulation:

b. Mapes has a capital deficiency of $75, as indicated in the following

tabulation:

Bray Lincoln Mapes Total

Ex. 12–23

Nettles King Tanaka

12-22

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

+= + + +

GOLD, PORTER, AND SIMS

Statement of Partnership Liquidation

For the Period Ending July 1–29, 2014

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

b. Lester, Member Equity

c. The income- and loss-sharing ratio is only used to distribute the gain or loss on the realization of asset sales.

Member Equity

=+ ++

53,800

ARCADIA SALES, LLC

Statement of LLC Liquidation

For the Period August 1–31, 2014

+

12-24

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Ex. 12–26

a. (1) Income Summary

Angel Alvarez, Capital

b.

Total

Capital, January 1, 2014 $120,000

$47,000

62,000

31,000

Emma

ALVAREZ AND ALLISON

Statement of Partnership Equity

Allison

Angel

Alvarez

For the Year Ended December 31, 2014

$ 73,000

12-25

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Ex. 12–27

$10,900,000,000

b. The revenues increased between the two years from $10.7 billion to $10.9

Ex. 12–28

$16,200,000

Revenue per employee, 2015:

$108,000

a. =

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Prob. 12–1A

1. Mar. 1 Cash 21,100

2.

Current assets:

Cash $60,700

KEENE AND MCKEE

Balance Sheet

March 1, 2014

PROBLEMS

Assets

12-27

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Prob. 12–1A (Concluded)

3. 28 Income Summary

Eric Keene, Capital*

* Computations:

Total

Interest allowance……………

…

$ 7,700 $ 6,000 $13,700

Feb.

Keene McKee

90,000

41,900

12

12-28

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Prob. 12–2A

Plan Lawford Delgado Lawford Delgado

a. ……………………………………

…

$45,000 $45,000 $ 67,500 $67,500

Details:

a. Net income (1:1)………………

…

$45,000 $45,000 $ 67,500 $67,500

…

f. Interest allowance……………

…

$10,800 $ 3,600 $ 10,800 $ 3,600

Salary allowance………………

…

28,000 60,000 28,000 60,000

Lawford Delgado Lawford Delgado

$90,000 $135,000

(1) (2)

12-29

…

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Prob. 12–3A

1.

Professional fees

Operating expenses:

Salary expense

Total

Division of net income:

Salary allowance………………… $45,000 $54,700 $ 99,700

2.

Capital, January 1, 2014

Additional investment during

Lambert Yost

LAMBERT AND YOST

Statement of Partnership Equity

For the Year Ended December 31, 2014

LAMBERT AND YOST

Income Statement

For the Year Ended December 31, 2014

$154,500

$395,300

JaylaTyler

Tyler

Lambert

Jayla

$ 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

LAMBERT AND YOST

Balance Sheet

December 31, 2014

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.

2. July 1 Shaniqua Hollins, Capital 70,000

12-32

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Prob. 12–4A (Concluded)

3.

Current assets:

Cash1$ 53,000

Accounts receivable $40,000

Current liabilities:

Musa Moshref, capital2$130,000

Partners’ Equity

MOSHREF, HOLLINS, AND ANDERSON

Balance Sheet

July 1, 2014

Assets

Liabilities

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Prob. 12–5A

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

b. William Gerloff, Capital*

GERLOFF, CHU, AND JEWETT

Statement of Partnership Liquidation

For Period February 3–28, 2014

++

7,900

Capital

+=+

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies

Prob. 12–6A

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

SAILS, WELCH, AND GREENBERG

Statement of Partnership Liquidation

For Period November 1–30, 2014

Capital

++=++