1. Johnson Ltd. Paid $52,000 in taxes for 2017, and will use this amount to estimate the quarterly instalment payments due to CRA for 2018. Johnson Ltd. has a December 31st year end.

Prepare the journal entries to record: a) the March 31, 2018 instalment amount payable, b) the instalment payment on April 15, 2018, and c) the December 31, 2018 final tax payable amount if the total yearly taxes owing was actually $45,000. (no entry for the actual payment, just the recognition of the payable amount).

3. Kathy Brown and James Greene formed a partnership and initially invested $50,000 and $40,000 respectively. During its first year of operations, 2018, the partnership recorded net income of $150,000.

Required:

a. Prepare calculations showing how the income should be allocated to the partners assuming the partners agreed to share income by allowing a $70,000 per salary allowance to Kathy Brown, a $55,000 per year salary allowance to James Greene, 10% interest on their initial investments, and the balance equally.

b. Record the journal entry allocating the income to Brown and Greene at year end.

5. The following is a condensed balance sheet for a partnership immediately prior to liquidation on December 31, 2018:

Assets

Cash $ 30,000 Inventory 160,000

Total Assets $190,000

Liabilities and Owners Equity

Accounts Payable Art, Capital Bart, Capital John, Capital Total Liabilities and owners

equity.

$ 70,000 20,000 40,000 60,000 $190,000

The partners share incomes and losses in the ratio of 5:3:2 for Art, Bart, and John, respectively. The partners agreed to liquidate the partnership.

Required:

Prepare journal entries to record the following:

a. Sale of Inventory for $200,000 cash b. The Allocation of the Gain/Loss from the inventory sale to the partners c. Payment of the liability d. Final Distribution of cash to the partners