User Account

All Pages

Prepare schedule showing the changes in capital

Assignment Help Financial Accounting
Reference no: EM132792559

Razul and Amy decided to start a partnership called SA Consulting on January 1, 2020. Each of them contributed a number of items to the partnership, which are listed below. All tangible assets are listed at their market value.

Razul

Cash $40,000
Equipment 190,000
Bank Loan80,000

Amy

Cash $60,000
Furniture 70,000
Accounts Payable 30,000

On March 1, Razul and Amy added a new partner to the business, Sheila. Sheila will contribute $100,000 and receive a 35% share of the business. Use the capital balances from January 1 to determine any bonuses. Assume the existing partners will split any bonus evenly.

During the year, Razul and Amy withdrew $20,000 and $15,000 respectively and the business reported a net income of $400,000. Their partnership agreement provided for sharing of net income (loss) on the following basis:

1. Salary of $60,000 is allocated to Razul, $50,000 to Amy, and $20,000 to Sheila.
2. Interest is allocated at 7% of each partner's opening capital balance.
3. Remainder is shared where Razul gets 40%, Amy gets 25%, and Sheila gets 35%.

problem a) Prepare the journal entries to record the contributions of each partner to start the partnership.

problem b) Prepare schedule showing the changes in capital and ending capital balances after the admission of Sheila.

problem c) Prepare the journal entry to record the admission of the new partner on March 1.

problem d) Prepare the journal entry to record the partner withdrawals of cash.

Reference no: EM132792559

Questions Cloud

Discuss the key components of human resource management : Discuss the key components of human resource management. Pick at least four concepts from chapter nine and describe how these concepts interrelate.
Collaboration-divisional structure and functional structure : Pick one of the following terms for your research: collaboration, divisional structure, functional structure, horizontal structure, matrix structure,
Coexistence of malnutrition and obesity : Does the setting in which you eat food contribute to its meaning? For example, if you eat dinner with your family every evening, do certain meals
Describe strategies to make the off-label use of drugs : Describe strategies to make the off-label use and dosage of drugs safer for children from infancy to adolescence. Include descriptions and names.
Prepare schedule showing the changes in capital : Prepare the journal entries to record the contribution,Prepare schedule showing the changes in capital and ending capital balances after the admission of Sheila
Coexistence of malnutrition and obesity in the modern : The coexistence of malnutrition and obesity in the modern world represent significant power differentials that exist both within individual cultures
Assess community needs in terms of healthcare disparities : Imagine you are a unit manager or top level leader in your facility. You are responsible for planning and implementing a new program in your facility related.
Ethics and social responsibility in developing caterpillar : Analyze the role of ethics and social responsibility in developing Caterpillar Inc.'s strategic plan while considering stakeholder needs and agenda.
Journalize the sale of the? equipment : Assume depreciation for 2019 has been recorded. Journalize the sale of the? equipment, assuming? straight-line depreciation was used.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What amount of net income under cash bases of accounting

Guardian would report what amount of net income under the cash and accrual bases of accounting, respectively? Guardian Corp. sells $6,250

  Provide the necessary journal entries for the disposal

Provide the necessary journal entries for the disposal of the machinery and the acquisition of the motor vehicle on 1 July 2019.

  How much will contribution margin be

The company has oven capacity of 900 hours. How much will contribution margin be if it produces only the most profitable product?

  Determine the buyer lost the discount of

Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment

  Fabrication departments equivalent unit related to materials

Arizaga Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. What are the Fabrication Department's equivalent units related..

  How much gain resulted from the sale

XYZ then had a 2-for-1 stock split. - After the split, the person sold 100 shares for $7,000. How much gain resulted from the sale?

  Preferred stock pays-diluted earnings per share

DiCenta Corporation reported net income of $287,000 in 2014 and had 51,800 shares of common stock outstanding throughout the year. Also outstanding all year were 5,520 shares of cumulative preferred stock, each convertible into 2 shares of common. Th..

  What the journal entry to record the monthly payroll

Medical insurance deductions 2640. What the journal entry to record the monthly payroll on April 30

  Create journal entries for the actual costs

Create two journal entries for the actual costs incurred - one for variable overhead and one for fixed overhead and create two journal entries to record the variances for August - one for variable overhead and one for fixed overhead.

  Find the mean number of accidents in a month

Find the mean number of accidents in a month. Calculate the variance in the number of accidents in a month. Determine the standard deviation.

  How companys inventory valuation method affects results

Discuss methods used to account for assets, liabilities, and shareholder equity, and explain how the company's inventory valuation method affects reported results.

  Calculate earth company total overhead variance

In the current month, the company incurred $340,000 actual overhead and 39,000 actual labor hours while producing 19,500 units. Compute Earth Company’s overhead application rate for total overhead. Calculate Earth Company’s total overhead variance.

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