Settlement of equity

Assignment Help Accounting Basics
Reference no: EM13155156

After allocating net income and closing the partners' drawing accounts, assume the partners' capital accounts have credit balances as follows: Adams $20,000; Bell $30,000; and Cooley $45,000. Partners share profits and losses as follows: Adams 20%; Bell 30%; and Cooley 50%. If Cooley retires and withdraws $40,000 in settlement of her equity and settlements are allocated according to capital interests, the amount entered in Adams's capital account would be a ??

Reference no: EM13155156

Questions Cloud

Calculate the amount of heat required : Calculate the amount of heat required to heat a 3.5 kg gold bar from 21 degrees celsius to 67 degrees celcius.
Cash until the note matures : Max Company purchased equipment on November 1, 2010 and gave a 16-month, 12% note with a face value of $5,000. Interest will not be paid in cash until the note matures. The December 31, 2010 adjusting entry is ??
Compute depreciation for meca concrete : Meca Concrete purchased a mixer on January 1, 2007, at a cost of $45,000. Straight-line depreciation for 2007 and 2008 was based on an estimated 8-year life and $3,000 estimated residual value. Compute depreciation for 2009 and 2010.
Complete the production cost report : Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department-Complete the Production Cost Report for March
Settlement of equity : Partners share profits and losses as follows: Adams 20%; Bell 30%; and Cooley 50%. If Cooley retires and withdraws $40,000 in settlement of her equity and settlements are allocated according to capital interests, the amount entered in Adams's capi..
Unamortized discount-premium on the effective interest basis : The bonds are dated January 1, 2010, and mature January 1, 2015, with interest payable December 31 of each year. Osborn Company allocates interest and unamortized discount or premium on the effective interest basis.
Balance sheet and statement of cash flows : eWare Corp started operations Jan 1, 2009. Using the information from December 31, 2009 prepare income statement, retained earnings statement, balance sheet and statement of cash flows:
Problem regarding sole propritorship : Luis is the sole shareholder of Stork Inc. a C corporation, and Eduardo owns a sole propritorship. Both businesses were started in 2010 and make a profit of 80,000 this year. Each owner withdraws 50,000 from his business during the year. Which of ..
Understanding inventory valuation methods : Explain the importance of understanding inventory valuation methods in determining the quality of the profit numbers.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the bad debt expense

Spock Corporation's unadjusted trial balance at Dec 31, 2007, included the following accounts. Spock Corporation estimates its bad debt expense to be 1.5% of net sales.

  Identify the problems that appear to exist in ferguson

identify the problems that appear to exist in ferguson and son manf company budgetary control system and explain how the problem are lightly to reduce the effectiveness of the system.

  Determining the macki capital account

Partners Ken and Macki each have a $40,000 capital balance and share income and losses in a 3:2. Cash equals $20,000, noncash assets equal $120,000, and liabilities equal $60,000. If the noncash assets are sold for $80,000, the Macki's capital acc..

  Amount of office supplies expense

Fiber-Optics Company had an office supplies inventory of $800 at the end of its first year of operation. Office supplies costing $3,000 had been purchased during the year. What is the amount of office supplies expense for the year?

  Stockholders equity section problem

The stockholders' equity section of Milroy Corporation as of December 31, 2003, was as follows:

  Relationship of acceptable audit risk

Explain why an auditor is likely to set both inherent and control risks at 100% for most segments. And explain the relationship of acceptable audit risk to planned detection risk and the effect of planned detection risk on evidence accumulation co..

  Compute production cost per unit under absorption costing

Compute production cost per unit under absorption costing.

  Evaluate the npv for project

An owner decides that he wants to go ahead with manufacturing; he must spend $900,000 for the new equipment-Calculate the NPV for this project. Should it be undertaken?

  Loss-gain contingencies

Generally accepted accounting principles (GAAP) require loss contingencies to be accrued in the period the contingency becomes known. However, GAAP specifically disallows booking gain contingencies until the gain is realized.

  At what level of sales for the two-month period

Birch Company normally produces and sells 45,000 units of RG-6 each month. RG-6 is a small electrical relay used as a component part in the automotive industry. The selling price is $49 per unit, variable costs are $21 per unit, fixed manufacturin..

  What is the cost of the land

The following expenditures were incurred by obermeyer company in purchasing land: cash price $68,011, accrued taxes $3,3618, attorney's fees $2,877, real estate broker's commission $1,189, and clearing and grading $4,045. What is the cost of the l..

  Ruben corporation-breakeven point

Corresponds to CLO 2(c) Ruben Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit.

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