User Account

All Pages

Discuss the original net capital investment

Assignment Help Accounting Basics
Reference no: EM131817095

Tom and Julie formed a management consulting partnership on January 1, 2014. The fair value of the net assets invested by each partner follows:

Tom Julie

Cash $13,000 $12,000

Accounts receivable 8,000 6,000

Office supplies 2,000 800

Office equipment 30,000 -

Land - 30,000

Accounts payable 2,000 5,000

Mortgage payable - 18,800

During the year, Tom withdrew $15,000 and Julie withdrew $12,000 in anticipation of operating profits. Net profit for 2014 was $50,000, which is to be allocated based on the original net capital investment.

Required:

A. Prepare journal entries to:

1. Record the initial investment in the partnership.

2. Record the withdrawals.

3. Close the Income Summary and Drawing accounts.

B. Prepare a statement of changes in partners' capital for the year ended December 31, 2014.

Reference no: EM131817095

Questions Cloud

Discuss the business strategy motivation : Discuss the business strategy motivation for the merger/acquisition
Husbands in the united states in the early : The distribution of hours worked per week by husbands in the United States in the early 1990s had mean 42.6 and standard deviation 12.9.
How do agents and brokers differ : Is the inherently discriminatory nature of underwriting acceptable from a public policy standpoint? How do agents and brokers differ?
Calculate the net present value of the investment : Calculate the net present value of the investment if the discount rate is 18%. Round your answer to nearest thousand dollars.
Discuss the original net capital investment : During the year, Tom withdrew $15,000 and Julie withdrew $12,000 in anticipation of operating profits
Standardize to find the z-score for sample mean : Suppose that in a sample of 3,154 4th graders, the mean math score was 228. Standardize to find the z-score for this sample mean.
Explain what were of accomplishments of early muslim culture : Explain what were some of the accomplishments of early Muslim culture? How has the impact of media changed or remained the same?
What are the five barriers to effective critical thinking : What are the five barriers to effective critical thinking? Explain What are the 3 parts of an argument? Explain
Question of the effect of work habits on marriage : Researchers might explore the question of the effect of work habits on marriage in a variety of ways. Tell whether each of these possible designs features

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss the differences between accrual-basis financial

discuss the differences between accrual-basis financial statements and cash-basis financial statements. determine which

  Determining tax consequences and alternatives

How much gain is recognized by Nathan? What is the character of the gain? What are the tax consequences and alternatives to Michelle? Is there a difference if Ben sold his entire interest?

  The west company uses the percent of ending armethod credit

the west company uses the percent of ending armethod. credit sales for the yearwere 5000000. ending accounts receivable

  The cost of the merchandise returned

Journalize Showcase Co.'s entries for (a) the sale, including the cost of the merchandise sold, (b) the credit memo, including the cost of the returned merchandise.

  Prepare a schedule to determine whether at the end of 2013

on january 1 2009 vallahara company purchased machinery for 650000 which it installed in a rented factory. it is

  The jurisdictional rules governing use

(i) "should the jurisdictional rules governing use tax collection obligationsbe different from the jurisdictional rules regarding liability for income taxation" and (ii) "if so, in which context should the jurisdictional threshold be higher?"

  What is the after tax return on bills corporate bonds

He has invested 20,000 in corporate bonds which is currently earning a annual return of 7.5% What is the after tax return on bill's corporate bonds for the year

  Length of the firm cash conversion cycle

For the Cook County Company, the average age of accounts receivable is 60 days, the average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assuming a 365-day year, what is the length of the firm's cash conversion ..

  On january 1 2007 the queen corporation issued 8 bonds with

on january 1 2007 the queen corporation issued 8 bonds with a face value of 95000. the bonds are sold for 92150. the

  Should mcelroy agree to the delay

What are the ethical issues involved? Should McElroy agree to the delay?

  Prepare a multi-step income statement and a retained earning

Multi-step Income, Retained Earnings) Presented below is information related to American Horse Company for 2004. Prepare a multi-step income statement and a retained earnings statement.

  Amortized each interest period on a straight-line basis

Garr Co. issued $4,220,000 of 12%, 5-year convertible bonds on December 1, 2014 for $4,237,830 plus accrued interest. The bonds were dated April 1, 2014 with interest payable April 1 and October 1. Bond premium is amortized each interest perio..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd