Reference no: EM132771406

Questions - Need help with the questions.

Problem 1: A Company sells merchandise for $2,500 cash, and is subject to a 6% sales tax. Record the journal entry for the sale.

Problem 2: A Company wants to extend the credit due on it's $1,000 account. The other Company agrees to accept $500 cash, and a $500 10% note payable. Record the journal entry for this transaction.

Problem 3: John and Jane Doe form a partnership. John invests $20,000 cash, $10,000 equipment, and $10,000 machinery. Joan invests $20,000 cash. Record the journal entry for each partner's contribution.

Problem 4: The partnership agreement states that John receives 2/3 of the profit, and Jane receives 1/3 of the profit. In the first year of operations the partnership had $60,000 net income. Record the journal entry for the net income distribution.

Problem 5: John decides to leave the partnership. He accepts his capital balance in cash. Record the journal entry for this transaction.

Problem 6: A partnership has net income of $50,000. Partnership equity was $100,000 at the beginning of the year, and $120,000 at the end of the year. Calculate the partnership's return on equity?

Problem 7: Identify the three categories of contingencies, and explain how they are recorded.

Problem 8: What is the difference between a regular partnership and a limited partnership?