Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 22, 2024

The partners are unsure as to whether the interest on the loan from Locke should be accounted for in the Income Statement or in the

The partners are unsure as to whether the interest on the loan from Locke should be accounted for in the Income Statement or in the Profit and Loss Appropriation Account. Explain to them how it should be treated?

Step by Step Solution

★★★★★

3.43 Rating (169 Votes )

There are 3 Steps involved in it

Step: 1

The interest on the loan from Locke should be accounted for in the Income Statement This is because ... 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

Step: 3

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

Frank Woods Business Accounting An Introduction To Financial Accounting

Authors: Alan Sangster, Lewis Gordon, Frank Wood

15th Edition

1292365439, 9781292365435

More Books

Students also viewed these Accounting questions

Question

★★★★★

Locke, Niece and Munster are in partnership with an agreement to share profits in the ratio 3:2:1. They also agree the following terms. (a) All three should receive interest at 12% on capital. (b)...

Answered: 1 week ago

Question

★★★★★

Amis, Lodge and Pym were in partnership sharing profits and losses in the ratio 5 : 3 : 2. The following trial balance has been extracted from their books of account as at 31 March 2020: Additional...

Answered: 1 week ago

Question

★★★★★

Amis, Lodge and Pym were in partnership sharing profits and losses in the ratio 5 : 3 : 2. The following trial balance has been extracted from their books of account as at 31 March 2011: Additional...

Answered: 1 week ago

Question

★★★★★

Paula makes the following acquisitions of ordinary shares in Indigent plc: She sells 500 shares on 28 March 2021. No shares are acquired within the next 30 days. (a) Show the s104 holding on 28 March...

Answered: 1 week ago

Question

★★★★★

Which of the following research methods should Tesco use to find out what U.S. consumers think of the Tesco brand name? a. Conduct a telephone survey of a carefully selected sample of U.S. residents....

Answered: 1 week ago

Question

★★★★★

=+SEC documents can be retrieved using the EdgarScan service at http://sec.gov. To obtain annual report information, click on Search for Company Filing, click on Companies & Other Filers, type in the...

Answered: 1 week ago

Question

★★★★★

In the Birth Weight data set the variable Race is a categorical variable that takes on the values 1, 2 and 3. If Race = 1 is used to represent a white mother, Race = 2 represents a black mother, and...

Answered: 1 week ago

Question

★★★★★

The shareholders' equity of Kramer Industries includes the data shown below. During 2012, cash dividends of $150 million were declared. Dividends were not declared in 2010 or 2011. Required:...

Answered: 1 week ago

Question

★★★★★

Question - 2 Consider vapor - liquid equilibrium of a binary mixture at 5 0 0 K . The fugacity coefficient in the vapor phase can be obtained, by an approach similar to calculating partial molar...

Answered: 1 week ago

Question

★★★★★

please help me. Show the work and please type the answer. Can't see hand writing clearly. please help and thank you 12.3 Manitowoc Crane (A). Manitowoc Crane (U.S.) exports heavy crane equipment to...

Answered: 1 week ago

Question

★★★★★

Give some ways to enhance manufacturing process of tony's toy trucks. Tony's Toy Trucks Order and Production Process Process Key Decision Process System Start/End Corporate ERP System Submit Purchase...

Answered: 1 week ago

Question

★★★★★

Overview In this discussion, we will consider the implications of the COVID-19 pandemic on the global economy and global trade now and in the future. Although the world has mostly reopened, the...

Answered: 1 week ago

Question

★★★★★

A crazy statistics tutor only passes 20% of students in a university subject, by examining all students in foreign languages that they do not know. If 20 students are randomly assigned to this tutor,...

Answered: 1 week ago

Question

★★★★★

Write a essay on the Equifax security breach and data breaches in general. What impact does it have on the businesses and organizations in our community, and what can we do to stop it from happening...

Answered: 1 week ago

Question

★★★★★

Which of the characteristic in a SWOT analysis is most important for a start-up business? Note: It is OK if you believe all are important, you just have to explain. Also provide conclusion along...

Answered: 1 week ago

Question

★★★★★

Carla Vista Inc. produces three separate products from a common process costing $100,200. Each of the products can be sold at the split-off point or can be processed further and then sold for a...

Answered: 1 week ago

Question

★★★★★

Why is homeostasis defined as the "relative constancy of the internal environments? Does negative feedback or positive feedback tend to promote homeostasis?

Answered: 1 week ago

Question

★★★★★

On 1 June 2023, Debuque plc had 7.2m 4.5% loan notes in issue, interest being paid annually in two instalments on 31 August and 28 February. On 1 October 2023, the company then issued a further 2.2m...

Answered: 1 week ago

Question

★★★★★

Waban prepared draft financial statements for the year ended 31 March 2024, which showed a draft profit for the year of 43,750. His draft financial statements were prepared by a Trainee Accountant....

Answered: 1 week ago

Question

★★★★★

Enter the following transactions in the appropriate accounts: Aug 1 Started in business with $ 7,400$ cash. 2 Paid $ 7,000$ of the opening cash into the bank. 4 Bought goods on time $ 410$ from...

Answered: 1 week ago

Question

★★★★★

Tilting in online poker. In poker, making bad decisions due to negative emotions is known as tilting. A study in the Journal of Gambling Studies (Mar. 2014) investigated the factors that affect the...

Answered: 1 week ago

Question

★★★★★

Predicting elements in aluminum alloys. Aluminum scraps that are recycled into alloys are classified into three categories: softdrink cans, pots and pans, and automobile crank chambers. A study of...

Answered: 1 week ago

Question

★★★★★

MINITAB was used to fit the model y = b0 + b1 x1 + b2 x2 + e to n = 20 data points, and the printout on p. 697 was obtained. a. What are the sample estimates of b0, b1, and b2? b. What is the least...

Answered: 1 week ago

Previous Question Next Question