Question
can you please help me some more? Part A (5 points each for a possible total of 10 points) 1. After several years of business,
can you please help me some more?
Part A
(5 points each for a possible total of 10 points)
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 assets 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 the
partners.
2. The partnership of Brandon and Ryan is being liquidated. All gains and
losses are shared in a 3:1 ratio, respectively. Before liquidation, their
balance sheet balances are as follows:
Cash $10,000
Other Assets 8,000
Liabilities 4,000
Brandon, Capital 7,000
Ryan, Capital 7,000
a. If the Other Assets are sold for $10,000, how much will each partner
receive before paying liabilities and distributing the remaining
assets?
b. If the Other Assets are sold for $8,000, how much will each partner
receive before paying liabilities and distributing remaining assets?
Part B
1. Simon Brothers pays $47,000 into a bond sinking fund each year to
redeem the future maturity of its bonds. During the first year, the fund
earned $3,825. At the time of 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 years interest
c. The redemption of the bonds
2. On January 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 January 1. Journalize the following entries.
a. Issued the bonds
b. Paid first semiannual interest payment
c. Retired the bonds at maturity
Part C
1. Prepare a statement of retained earnings in proper form for White
Corporation for the year ended December 31, 2012, from the following:
Retained Earnings, January 1, 2012 $2,000
Dividends paid during the year 800
Net income for the year 3,000
Correction of prior year error. Purchase
of land recorded as rent expense 1,000
2. Curtis Corporations balance sheet included the following:
Common Stock, $5 par value, 5,000 shares issued
and outstanding $25,000
Retained Earnings 20,000
Total Stockholders Equity $45,000
Prepare journal entries for the following transactions.
May 3 Issued 500 shares at $6 per share
9 Reacquired 100 shares at $4 per share
15 Reissued 50 of the Treasury shares at $7 per share
17 Reissued 10 of the Treasury shares at $3 per share
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