Prepare journal entries to transfer the loss to the partners

Assignment Help Accounting Basics
Reference no: EM132809248

Problem 1: The Roten and Welborn Partnership incurred a loss of $30,000 for the current year. The beginning capital balances of the partners were respectively, $45,000 and $55,000. Prepare journal entries to transfer the loss to the partners' capital accounts based on the following agreements.

a) No mention of profit/loss agreement
b) Salary of $40,000 to Roten and $20,000 to Welborn, balance divided in the ratio of 3:2
c) Interest of 12% on beginning capital balances, balance divided in the ratio of 2:3

Reference no: EM132809248

Questions Cloud

What sum of money must be deposited in a trust fund : What sum of money must be deposited in a trust fund to provide a scholarship of $1520.00, payable at the beginning of each 3 months
Expensive patenting process : Before embarking on an expensive patenting process, what should you consider to determine whether it is worth patenting your invention(s)?
What amount of cash should be distributed to the partners : If the 1st non cash asset with book value of P300,000 was sold for 250,000 what amount of cash should be distributed to the partners?
Frameworks mentioned : Are there other frameworks mentioned has been discussed in the article that might be more effective?
Prepare journal entries to transfer the loss to the partners : Prepare journal entries to transfer the loss to the partners' capital accounts based on the No mention of profit/loss agreement agreements.
What was outcome of cost reduction scenario : What was the outcome of the Cost Reduction scenario? The content presented suggests you endorse the Vroom-Yetton Decision Model.
Discuss the impact of sarbanes-oxley on a company : Discuss the impact of Sarbanes-Oxley on a company's internal controls. Be sure to define internal controls and discuss the basic principles
Calculate the effective interest rate for each alternative : Calculate the effective interest rate for each alternative. Borrows from Rich Bank in the form of discounted loan which charge an annual interest rate of 8%.
What are the rules for minimum wages : What are the rules for minimum wages? Why do these rules exist? How are these rules created? Who enforces these rules?

Reviews

Write a Review

Accounting Basics Questions & Answers

  2010 jan 9- purchased computer equipment at a cost of 10000

2010 jan 9- purchased computer equipment at a cost of 10000 signing a six month 8 note payable for that amount. jan

  Prepare journal entries for coronado company for may

Prepare journal entries for Coronado Company for May 1, June 1, July 1, and July 10. On July 10, Coronado increased the fund from $105 to $135.00.

  An employee of morgan corporation has found some partially

an employee of morgan corporation has found some partially completed units of model x in a dusty corner of the

  By how much does the marketing survey change

The discount rate is 10 percent. By how much does the marketing survey change the expected net present value of the project

  Krammer company has liabilities equal to one fourth of the

krammer company has liabilities equal to one fourth of the total assets. krammers owners equity is 45000. using the

  Calculate the company income tax expense

Calculate the company's income tax expense for 2013, showing separately the current and deferred income tax amounts

  Calculate the comparative cost of each of the three payment

Using the net present value method, calculate the comparative cost of each of the three payment plans being considered by New Bio

  Borrowing rate is substantially greater than united ''s rate

United Manufacturing Company manufactures and leases computers to its customers. During 2010, the following lease transactions take place:

  Danson iron works inc manufactures angular contact ball

danson iron works inc. manufactures angular contact ball bearings for pumps that operate in harsh environments. if the

  Determine the gorberchev food processing

Determine the Gorberchev Food Processing.The budgeted production (in units) for Gorberchev Food Processing for May should be?

  Determine the present value of the bonds payable

Caps Co. produces and sells bottle capping equipment for soft drink and spring water bottlers. Determine the present value of the bonds payable

  What is the total amount invested

What is the total amount invested (total paid-in capital) by all stockholders as of May 31? Illustrate the effects on the accounts and financial statements

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!

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