I am struggling at this moment. Help me please

Question 1

Presented below is an income statement for Kinder Company for the year ended December 31,

2017.

Kinder Company

Income Statement

For the Year Ended December 31, 2017

Net sales $840,000

Costs and expenses:

Cost of goods sold 560,000

Selling, general, and administrative expenses 70,000

Other, net 40,000

Total costs and expenses 670,000

Income before income taxes 170,000

Income taxes 51,000

Net income $119,000

Additional information:

1. "Selling, general, and administrative expenses" included a usual but infrequent charge of

$7,000 due to a loss on the sale of investments.

2. "Other, net" consisted of interest expense, $10,000, and a discontinued operations loss of

$30,000 before taxes. If the discontinued operations loss had not occurred, income taxes for

2017 would have been $60,000 instead of $51,000.

4. Kinder had 40,000 shares of common stock outstanding during 2017.

Can you make a income statement for Kinder?

Question 2

Porter Corporation's capital structure consists of 50,000 shares of common stock. At December

31, 2017 an analysis of the accounts and discussions with company officials revealed the

following information:

Sales revenue $1,250,000

Discontinued operations loss (net of tax) 63,000

Selling expenses 128,000

Cash 60,000

Accounts receivable 90,000

Common stock 200,000

Cost of goods sold 700,000

Accumulated depreciation-machinery 180,000

Dividend revenue 8,000

Unearned service revenue 4,400

Interest payable 1,000

Land 370,000

Patents 100,000

Retained earnings, January 1, 2017 270,000

Interest expense 17,000

Administrative expenses 170,000

Dividends declared 24,000

Allowance for doubtful accounts 5,000

Notes payable (maturity 7/1/20) 200,000

Machinery 450,000

Materials 40,000

Accounts payable 60,000

The amount of income taxes applicable to income was $72,900, excluding the tax effect of the

discontinued operations loss which amounted to $27,000.

Instructions

(a) Prepare multiple-step income statement.

(b) Prepare retained earnings statement.

The following are True or False scenarios.

Provide solutions and explanations for every item.

1. Maeva, Cloe, and Zack are partners with a capital balance of $5 each. The partners have equal interests in the partnership. Zack is fed up with Maeve and Cloe's quarrels and wants to withdraw from the partnership. The partnership's net assets are fairly valued. If Maeve acquires Zack's interest for $2. Maeve's capital after the withdrawal of Zack is $10

2. Maeva, Cloe, and Zack are partners with a capital balance of $5 each. The partners have equal interests in the partnership. Zack is fed up with Maeve and Cloe's quarrels and wants to withdraw from the partnership. The partnership's net assets are fairly valued. If the partnership pays Zack $7 as settlement of his partnership interest. Cloe's capital after the withdrawal of Ice Bear is $4.

3. Maeva, Cloe, and Zack are partners with a capital balance of $5 each. The partners have equal interests in the partnership. Zack is fed up with Maeve and Cloe's quarrels and wants to withdraw from the partnership. The partnership's net assets are fairly valued. If Cloe was able to persuade Zack to stay on the condition that the partnership should be converted into a corporation, and the corporation issued 4 shares with a par value of $1 per share to each of the partners, then the credit to share premium is $2.

4. A partnership has total assets of $5 (all non-cash), total liabilities of $1, and the following capital balances, A capital (50%) $2 and B, Capital (50%) $2. If total assets were sold for %4, then the loss on sale is $2.

5. A partnership has total assets of $5 (all non-cash), total liabilities of $1, and the following capital balances, A capital (50%) $2 and B, Capital (50%) $2. If total assets were sold for $4, then A's share in the final cash distribution is $1.

Provide solutions for the problems below.

1. A and B formed a partnership. The following are their contributions: A B Cash 200,000 - Accounts receivable 150,000 - Inventory 100,000 - Land 500,000 Building 620,000 Total 450,000 1,120,000 Note payable 220,000 A, capital 230,000 B, capital 1,120,000 Total 450,000 1,120,000 Additional information: The accounts receivable has a recoverable amount of 120,000. The inventory has an estimated selling price of 110,000 and estimated costs to sell of 20,000. The land has a fair value of 500,000 an unpaid mortgage of 120,000. The partners agreed that B shall settle the mortgage using his personal funds. The building is over-depreciated by 30,000. The building also has an unpaid mortgage amounting to 550,000. The partners agreed that the partnership shall assume repayment of the mortgage. The note payable has a fair value of 210,000. A and B shall share in profits and losses 40% and 60%, respectively. How much are the adjusted capital balances of A and B, respectively?

2. A, B and C formed a partnership. Their contributions are as follows: A B C Cash 50,000 40,000 140,000 Equipment 150,000 Totals 50,000 190,000 140,000 Additional information: Although C has contributed the most cash to the partnership, he did not have the full amount of 140,000 available and was forced to borrow 40,000. The partners agreed that half of the amount borrowed shall be assumed by the partnership. The equipment contributed by B has an unpaid mortgage of 20,000, the repayment of which is not assumed by the partnership. The partners agreed to equalize their interests. Cash settlements among the partners are to be made outside the partnership. Which partner(s) shall receive cash payment from the other partner(s)?

3. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available:

Cash 80,000

Accounts receivable 240,000

Inventory 480,000

Equipment 1,200,000

Total 2,000,000

Accounts payable 120,000

Payable to B 80,000

A, Capital (20%) 400,000

B, Capital (30%) 600,000

C, Capital (50%) 800,000

Total 2,000,000

Information on the conversion of non-cash assets is as follows:

$40,000 was collected on accounts receivable; the balance is uncollectible.

$20,000 was received for the entire inventory.

The equipment was sold for $200,000.

$8,000 liquidation expenses were paid.

$108,000 was paid to outside creditors, after offset of a $12,000 credit memorandum received on January 2, 20x1.

All of the partners are personally solvent.

How much did B receive from the settlement of his interest in the partnership?