Mastery Problem Instructions Chart of Accounts General Journal Income Statement Instructions Jim Bond, a plumber, has been working for Fleming's Plumbing Supplies for several years. Based on his hard work and the fact that he recently married Ivan Floring's daughter, Jim has been invited to enter into a partnership with Fleming. The new partnership will be called Fleming and Bond's Plumbing Supplies. The terms of the partnership are as follows: (a) Fleming will invest the assets of Fleming's Plumbing Supplies, and the partnership will assume all liabilities. The market values of the office and store equipment are estimated to be $18,000 and $8,000, respectively. All other values reported on the balance shoot are reasonable approximations of market values. Fleming has no knowledge of any uncollectible accounts receivable (b) Bond will invest $50,000 cash (c) Fleming will draw a salary allowance of $50,000 per year, and Bond will receive $30,000 (d) each partner will receive 10% interest on the January 1 balance of his capital account, (e) Profits or losses remaining after allocating salaries and interest will be distributed as follows. Fleming, 60% and Bond, 40% Income Statement SONORIS Cons Fleming and Bond's Plumbing Supplies Income Statement (Partial) For the Year Ended December 31, 20-2 1 Net income 2 Allocation of net income: L. Fleming J.Bond 3 Salary allowances Total 4 Interest allowances Remaining income 6 Allocation of net income Income Statement Statement of Partnership Liquidation Adana Instructions Fleming and Bond's Plumbing Supplies Statement of Partnership Liquidation For Period August 1-15, 20-9 Merchandise Cash Office Equipment Accumulated Depreciation- Office Equipment Ston Inventory 2 Balance before sale of assets Sale of inventory and allocation of gain or loss + Sale of office equipment and allocation of gain or loss Sale of store equipment and allocation of gain or loss Mastery Problem Instructions Chart of Accounts General Journal Income Statement Instructions Jim Bond, a plumber, has been working for Fleming's Plumbing Supplies for several years. Based on his hard work and the fact that he recently married Ivan Floring's daughter, Jim has been invited to enter into a partnership with Fleming. The new partnership will be called Fleming and Bond's Plumbing Supplies. The terms of the partnership are as follows: (a) Fleming will invest the assets of Fleming's Plumbing Supplies, and the partnership will assume all liabilities. The market values of the office and store equipment are estimated to be $18,000 and $8,000, respectively. All other values reported on the balance shoot are reasonable approximations of market values. Fleming has no knowledge of any uncollectible accounts receivable (b) Bond will invest $50,000 cash (c) Fleming will draw a salary allowance of $50,000 per year, and Bond will receive $30,000 (d) each partner will receive 10% interest on the January 1 balance of his capital account, (e) Profits or losses remaining after allocating salaries and interest will be distributed as follows. Fleming, 60% and Bond, 40% Income Statement SONORIS Cons Fleming and Bond's Plumbing Supplies Income Statement (Partial) For the Year Ended December 31, 20-2 1 Net income 2 Allocation of net income: L. Fleming J.Bond 3 Salary allowances Total 4 Interest allowances Remaining income 6 Allocation of net income Income Statement Statement of Partnership Liquidation Adana Instructions Fleming and Bond's Plumbing Supplies Statement of Partnership Liquidation For Period August 1-15, 20-9 Merchandise Cash Office Equipment Accumulated Depreciation- Office Equipment Ston Inventory 2 Balance before sale of assets Sale of inventory and allocation of gain or loss + Sale of office equipment and allocation of gain or loss Sale of store equipment and allocation of gain or loss