Question
Hi, I need to solve these questions please help 1) After several years of business, Abel, Barney, Cole are liquidating. The following are post-closing account
Hi, I need to solve these questions please help
1) After several years of business, Abel, Barney, Cole are liquidating. The following are post-closing account balances.
Cash $18,000
Inventory $73,000
Other assets $157,000
Accounts Payable $61,000
Able (Capital) $50,000
Barney (Capital) $50,000
Cole (Capital) $87,000
Non cash 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 being Liquidated. All gains and losses are shared in 3:1 ratio respectively. Before liquidating there 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?
3) 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 followinh entries.
a. Initial Deposit
b. First Years Interest
c. The redemption of the bonds
4) On January 1st, auctions online issued $300,000, 9%, 10-year bonds to lenders at the contract rate. Interest is to be paid semi-annualy on July 1st and January 1st. Journalize the following entries.
a. Issued the bonds
b. Paid first semi-annual interest payment.
c. Retired the bonds at maturity.
5) Prepare a statement of retained earnings in proper form for white corporation for the year ended December 31st, 2012, from the following:
Retained earnings, January 1st, 2012: $2,000
Dividends paid during the year: $800
Net income for the year: $3000
Correction of prior year error. Purchase of land recorded as rent expense: $1000
6) Curtis corporation's balance sheet included the following:
Common Stock, $5 par value, $5000 shares issued and outstanding $25,000
Retained Earnings $20,000
Stock holders 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
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