Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On April 1, 2011, Whitney Lang and El Capriforma partnership. Lang agrees to invest $17,100 cash and merchandise inventory valued at $46,200. Capri invests certain

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On April 1, 2011, Whitney Lang and El Capriforma partnership. Lang agrees to invest $17,100 cash and merchandise inventory valued at $46,200. Capri invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring his total capital to $115,000 Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow: Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Equipment Accumulated Depreciation-Equipment Accounts Payable Notes Payable (current) Capri's Ledger Agreed-Upon Balance Balance 526,200 $21,200 1,100 1,400 30,400 40,700 51,300 49,000 17.100 9,200 9.200 5,600 5.600 The partnership agreement includes the following provisions regarding the division of net income interest of 10% on original investments, salary allowances of 551,300 (lang) and 531,300 (Caprt), and the remainder equally Required: 1. Journale the entries to record the investments of Lang and Cars in the partnership accounts. If an amount box does not require an entry leave blank ACCOUNT DEBIT CREDIT Calculator 1. Journalize the entries to record the investments of Lang and Capri in the partnership accounts. If an amount box does not require an entry leave it blank ACCOUNT DEBIT CREDIT Apr. 1 Apr. 1 2. Prepare a balance sheet as of April 1, 2011, the date of formation of the partnership of lang and Capri Lang and Capri Balance Sheet DE Wackspace & 7 5 00 0 R H J Calculator 2. Prepare a balance sheet as of April 1, 2001, the date of formation of the partnership of Lang and Capri. Lang and Capri Balance Sheet April 1, 2011 Assets Current assets Total current assets Property, plant, and equipment: Total assets Liabilities Current liabilities: Total liabilities 8 T o Total partners' equity Total abilities and partners' equity 3. After adjustments at March 31, 2012, the end of the first full year of operations, the revenues were $493,000 and expenses were $323,000, for a net income of $170,000. The drawing accounts have debit balances of 559.000 (Lang) and $51,000 (Capri). Journalize the entries to close the revenues and expenses and the drawing accounts at March 31, 2012. If an amount box does not require an entry. leave it blank ACCOUNT DEBIT CREDIT Mar. 31 Mar. 31 E DE 8 U H K

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062

More Books

Students also viewed these Accounting questions

Question

=+a. Checks outstanding totaled $12,850.

Answered: 1 week ago