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72 Spring 2019 Question 1. John Adams and Bret Bundy combine their proprietorships to start a partnership named Adams and Bret Consulting. Adams and Bret
72 Spring 2019 Question 1. John Adams and Bret Bundy combine their proprietorships to start a partnership named Adams and Bret Consulting. Adams and Bret have the following assets prior to the formation of the partnership. Fair Value Book Value Bundy Adams Bundy Adams $20,000 Cash $16,000 $20,000 $16,000 $10,000 Car $12,000 Accumulated Depreciation (3,000) Accounts receivable 9,000 9,000 100 Allowance for doubtful accounts (800) (1000) Total 37000 Qude You are required record the partnership investments. prans 430,rd iz H2 54o,o00 , 12. Question 2. beycoo 30quo 29600 Atlantis Company t 4500 tstCeo 13 3o0 30400 Division of Net Income 24L00 14Pa For the year ended December 31, 2018 $60,000 230 00 32,100 Net Income The capital balance at the beginning of the year are Pearsons $ 30,000 Quade $ 40,000 Other information include Salary allowance Pearsons $ 9,500 and Quade $ 12,500. Interest allowance is 12% of the beginning capital for Pearsons and Quade. The remaining income is divided equally. You are required to compute the total division of income for Pearsons and Quade. You are also required to record the division of net income as of December 21, 2018. Question 3. Zebra Company liquidates. There are three partners Julian, Kim and Lindsay. The following information pertain to Zebra prior to the liquidation. You are required to prepare a schedule of cash payments. Assume the proceeds from the sale of noncash assets amounted to $59,000. Gain/loss to be shared equally Cash $12,000; Noncash Assets $ 50,000 $35,000; Capital Julian, $ 22,000; Capital Kim $ 24,000; Capital $ 18,000. Liabilities 100,00 #4 rGiey Question 451000 aeome Statemen Prepare a depreciation schedule using straight line method. Bought a car on J $100,000. Estimated life is 5 years and salvage value is $ 5,000 January 1, 2012 for Question 5. Prepare depreciation schedule using the double declining balance method. Bought a car on January1, 2014 for $ 48,000, estimated life 5 years and salvage value $ 6,000. Losh Question 6. Calculate depreciation using units of activity method. Bought an excavator for $ 150,000 on Arais January 1, 2015.Salvage value $ 12,000. Expected life is 7 years. Over the life of the asset the excavator is expected to be used for 100,000 hours. Calculate depreciation for year 2015 assuming the excavato was used for 15,000 hours. What would be the depreciation for year 2016 assuming the excavator was used for 10,000 hours. 13eo0 1 T00, 000 yeor 151000 doob WF00 (39.o00 Ico,000 (0,000 13800 eor 3 13P,000 h Spo00 bup ane o 6100 72 Spring 2019 Question 1. John Adams and Bret Bundy combine their proprietorships to start a partnership named Adams and Bret Consulting. Adams and Bret have the following assets prior to the formation of the partnership. Fair Value Book Value Bundy Adams Bundy Adams $20,000 Cash $16,000 $20,000 $16,000 $10,000 Car $12,000 Accumulated Depreciation (3,000) Accounts receivable 9,000 9,000 100 Allowance for doubtful accounts (800) (1000) Total 37000 Qude You are required record the partnership investments. prans 430,rd iz H2 54o,o00 , 12. Question 2. beycoo 30quo 29600 Atlantis Company t 4500 tstCeo 13 3o0 30400 Division of Net Income 24L00 14Pa For the year ended December 31, 2018 $60,000 230 00 32,100 Net Income The capital balance at the beginning of the year are Pearsons $ 30,000 Quade $ 40,000 Other information include Salary allowance Pearsons $ 9,500 and Quade $ 12,500. Interest allowance is 12% of the beginning capital for Pearsons and Quade. The remaining income is divided equally. You are required to compute the total division of income for Pearsons and Quade. You are also required to record the division of net income as of December 21, 2018. Question 3. Zebra Company liquidates. There are three partners Julian, Kim and Lindsay. The following information pertain to Zebra prior to the liquidation. You are required to prepare a schedule of cash payments. Assume the proceeds from the sale of noncash assets amounted to $59,000. Gain/loss to be shared equally Cash $12,000; Noncash Assets $ 50,000 $35,000; Capital Julian, $ 22,000; Capital Kim $ 24,000; Capital $ 18,000. Liabilities 100,00 #4 rGiey Question 451000 aeome Statemen Prepare a depreciation schedule using straight line method. Bought a car on J $100,000. Estimated life is 5 years and salvage value is $ 5,000 January 1, 2012 for Question 5. Prepare depreciation schedule using the double declining balance method. Bought a car on January1, 2014 for $ 48,000, estimated life 5 years and salvage value $ 6,000. Losh Question 6. Calculate depreciation using units of activity method. Bought an excavator for $ 150,000 on Arais January 1, 2015.Salvage value $ 12,000. Expected life is 7 years. Over the life of the asset the excavator is expected to be used for 100,000 hours. Calculate depreciation for year 2015 assuming the excavato was used for 15,000 hours. What would be the depreciation for year 2016 assuming the excavator was used for 10,000 hours. 13eo0 1 T00, 000 yeor 151000 doob WF00 (39.o00 Ico,000 (0,000 13800 eor 3 13P,000 h Spo00 bup ane o 6100
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