After several years of business,
Abel, Barney, and Cole are liquidating. The following are post-closing account
Accounts Payable 61,000
Abel, Capital 50,000
Barney, Capital 50,000
Cole, Capital 87,000
Non-cash assets are sold for
$275,000. Profits and losses are shared equally.
After all liabilities are paid,
divide the remaining cash amongst the partners.
The partnership of Brandon and
Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio,
respectively. Before liquidation, their balance sheet balances are as follows:
a) If the Other Assets are sold
for $10,000, how much will each partner receive before paying liabilities and
distributing the remaining assets?
b) If the Other Assets are sold
for $8,000, how much will each partner receive before paying liabilities and
distributing remaining assets?
Simon Brothers pays $47,000 into
a bond sinking fund each year to redeem the future maturity of its bonds.
During the first year, the fund earned $3,825. At the time of bond redemption,
the fund has a balance of $417,000. Of this, $400,000 was used to redeem the
bonds. Journalize the a) initial deposit; b) the first year’s interest; and c)
the redemption of the bonds.
On January 1, Auctions Online
issued $300,000, 9%, 10-year bonds to lenders at the contract rate. Interest is
to be paid semiannually on July 1 and January 1. Journalize the following
a. Issued the bonds.
b. Paid first semiannual interest
c. Retired the bonds at maturity.
Prepare a statement of retained
earnings in proper form for White Corporation for the year ended December 31,
20xx, from the following:
Earnings, January 1, 2012 $2,000
paid during the year 800
income for the year 3,000
of prior year error. Purchase
recorded as rent expense 1,000
Curtis Corporation’s balance
sheet included the following:
Stock, $5 par value, 5,000 shares issued
Total Stockholders’ Equity $45,000
Prepare journal entries for the
500 shares at $6 per share.
100 shares at $4 per share.
50 of the Treasury shares at $7 per share.
10 of the Treasury shares at $3 per share.