Three-part Accounting Assignment Lesson 21

Oct 16th, 2015
Price: $15 USD

Question description

Part A

 1. After several years of business, Abel, Barney and Cole are liquidating. The following are post-closing account balances.

Cash                  18,000

Inventory           73,000

Other Asssets  157,000

Accounts Payable                         61,000

Abel, Capital                                  50,000

Barney, Capital             50,000

Cole, Capital                  87,000

Noncash assets are sold for $275,000. Profits and losses are shared equally.

After all liabilities are paid , divide the remaining cash amongst th partners.

2.The partners of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respecively. Before liquidation, their balance sheet balances are as follows:

Cash                   $10,000

Other assets           8,000

Lialibities                 4,000

Brandon, Capital     7,000

Ryn, Capital            7,000

A. If th other Assets are sold for $10,000, how much will each partner receive before paying lialibities and distributing the remaining assets?

B.If the other Assets are sold for $8,000, how much will each partner receivebefore paying liabilities and distributing remaining assets?


Part B

1. Simon Brothers pay $47,000 into a bond sinking fund each year to redeem the future maturity of its bonds. During the first year, the fund earned $3825. At the time of the bond redemption, the fund has a balance of $417,000. Of this $400,000 was used to redeem the bonds. Journalize the following entries.

A. Initial deposit

B. The first year;s interest

C. The redemption of the bonds

2. On Janurary 1, auctions Online issued $300,000, 9%, 10-year bonds to lenders at the contract rate. Interest is to be paid semiannually on July 1 and Janurary 1. Journalize the following entries.

A. Issued the bonds

B. Paid first semiannual interest payment

C. Retired the bonds maturity


Part C

1. Prepare a statement of retired earnings in proper form for White Corporation for the year ended December 31, 2012, from the following:

Retained Earnings, Janurary 1, 2012                                                             $2,000

Dividends paid during the year                                                                            800

Net income for the year                                                                                     3,000

Correction of the prior year error. Purchase of land recorded as rent expense 1,000


2. Curtis Corporation's balance sheet included the following:

Common stock, $5 par value, 5,000 shares issued and outstanding                25,000

Retained ernings                                                                                                20,000

Total Stockholders' Equity                                                                                 $45,000

Prepare journal entries for the following transactions.

May 3 Issued 500 shares at $6 per share

May 9 Reacquired 100 shares at $4 per share

May 15 Reissued 50 of the Treasury shares at $7 per share

May 17 Reissued 10 of the Treasury shares at $3 per share





Tutor Answer

(Top Tutor) Studypool Tutor
School: Carnegie Mellon University

Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors