Question
The partnership contract of A, B & C LLP provides for the remuneration of partners as follows: Salaries of $80,000 to A, $70,000 to B,
The partnership contract of A, B & C LLP provides for the remuneration of partners as follows: Salaries of $80,000 to A, $70,000 to B, and $60,000 to C, to be recognized annually as operating expense of the partnership in the measurement of net income, Bonus of 10% of income after salaries and the bonus to A, and Remaining net income or loss 30% to A, 20% to B, and 50% to C. Income of A, B & C LLP before partners salaries and As bonus was $430,000 for the fiscal year ended December 31, 2020.The journal entry to accrue partners salaries and Anns bonus includes:
Select one:
a.
Debit to partners salaries expense $230,000.
b.
Credit to partners salaries expense $230,000.
c.
Credit it to partners salaries expense $210,000.
d.
Debit to partners salaries expense $210,000.
The working paper elimination on the date of the Parent Corporation and subsidiary Company on 31/12/2019 date of business combination included debit to Plant Assets subsidiary (depreciable, 10-year life) $350,000, straight line method used by both companies to depreciate the assets, under equity method, the working paper eliminations, in journal entry format for Parent Corporation and its subsidiary on 31/12/2020 includes:
a.
Debit to plant assets $315,000.
b.
Credit to plant assets $350,000.
c.
Credit to plant assets $315,000.
d.
Debit to plant assets $350,000.
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