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 Fleming'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 sheet are reasonablo 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% Instructions General Journal PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 2 3 4 4b. Record the journal entries related to the partnership liquidation for the period August 1-15, 20-9. comes comentan con 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 Total Salary allowances Interest allowances 5 Remaining income Allocation of net income Instructions General Journal Income Statement Statement of Partnership Liquidation For Period August 1-15.20-9 Cash Merchandise Inventory Office Equipment And Deprecation- onalapnet 2 Balance before sale of assets 3 Sale of inventory and allocation of gain or loss * Sale of office equipment and allocation of gain or loss 5 Sale of store equipment and allocation of gain or loss 6 Balance after sale of assets Payment of liabilities 8 Balance after payment of liabilities 9 Distribution of cash to partners 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 Fleming'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 sheet are reasonablo 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% Instructions General Journal PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 2 3 4 4b. Record the journal entries related to the partnership liquidation for the period August 1-15, 20-9. comes comentan con 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 Total Salary allowances Interest allowances 5 Remaining income Allocation of net income Instructions General Journal Income Statement Statement of Partnership Liquidation For Period August 1-15.20-9 Cash Merchandise Inventory Office Equipment And Deprecation- onalapnet 2 Balance before sale of assets 3 Sale of inventory and allocation of gain or loss * Sale of office equipment and allocation of gain or loss 5 Sale of store equipment and allocation of gain or loss 6 Balance after sale of assets Payment of liabilities 8 Balance after payment of liabilities 9 Distribution of cash to partners
