Reference no: EM132492601
Question - Partnership entries, profit allocation, admission of a partner
On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $297,000 cash and $394,000 of equipment, respectively. The partnership also assumed responsibility for a $57,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $167,000, both are to receive an annual interest allowance of 10% of their original capital investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $117,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $550,000. On June 1, 2021, Peter Williams invested $137,000 and was admitted to the partnership for a 20% interest in equity.
Required -
1. Prepare journal entries for the following dates.
a. June 1, 2020
b. November 20, 2020
c. May 31, 2021
d. June 1, 2021
2. Calculate the balance in each partner's capital account immediately after the June 1, 2021, entry.
|
Find the adjusting entry needed at the end of the year
: A total of $3,450 in supplies was purchased during the year. At the end of the year $800 of the supplies were left. Find the adjusting entry needed
|
|
Compute the amount of one years depreciation
: MacGyver Company bought equipment on January 3, 2019, for $35,900. Using the straight-line method, compute the amount of one year's depreciation
|
|
Determine gap between the flooring and the ceiling
: Q1. What would the suppliers do during the Growth stage to try and meet the excessive Demand?
|
|
What is the amount of depreciation expense
: Using the straight-line depreciation method, what is the amount of depreciation expense to be recorded at December 31, 2019
|
|
Calculate the balance in each partners capital account
: Question - Partnership entries, profit allocation, admission of a partner. Calculate the balance in each partner's capital account immediately after the June 1
|
|
Economic achievements between asean and saarc
: Compare the economic achievements between ASEAN and SAARC. Which one is more successful in economic integration? Explain why one is more successful than the oth
|
|
Prepare the journal entry to record interest on June
: Monument Company purchased 10% bonds, dated January 1, 2021, Prepare the journal entry to record interest on June 30, 2021, using the straight-line method
|
|
How long does sally have to amend her returns
: Sally completed the amended return for tax year 2018 to claim dependent care credit; How long does sally have to amend her returns
|
|
Monopolistically competitive markets
: Compare the elasticities of the demand curves for firms operating in perfectly competitive markets and monopolistically competitive markets
|