unit 5 account
Ethel Barnett 45
CopyofUnit5HomeworkExerciseWorkingPapers.xlsP12-32B
| P12-32B | |||||||||
| Requirements | |||||||||
| 1. | Journalize the partners’ initial contributions. | ||||||||
| 2. | Prepare the partnership balance sheet immediately after its formation on March 15, 2016. | ||||||||
| 3. | Journalize the closing of the Income Summary and partner Withdrawal accounts on December 31, 2016. | ||||||||
| Solution: | |||||||||
| Requirement 1 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 2 | |||||||||
| LAWLER & RICHARDS | |||||||||
| Balance Sheet | |||||||||
| March 15, 2016 | |||||||||
| Assets | Liabilities | ||||||||
| Requirement 3 | |||||||||
| Date | Accounts and Explanation | Debit | Credit |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING Eleventh Edition&"Arial,Regular"&10
&L&"Arial,Bold"Chapter 12: Partnerships&R&"Arial,Bold"Page &P of &N
P12-34B
| P12-364B | |||||||||
| Requirements | |||||||||
| Journalize the admission of Thompson as a partner on July 31 for each of the following independent situations: | |||||||||
| 1. | Thompson pays Lawrence $144,000 cash to purchase Lawrence’s interest. | ||||||||
| 2. | Thompson contributes $105,000 to the partnership, acquiring a 1/4 interest in the business. | ||||||||
| 3. | Thompson contributes $105,000 to the partnership, acquiring a 1/6 interest in the business. | ||||||||
| 4. | Thompson contributes $105,000 to the partnership, acquiring a 1/3 interest in the business. | ||||||||
| Solution: | |||||||||
| Requirement 1 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 2 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 3 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 4 | |||||||||
| Date | Accounts and Explanation | Debit | Credit |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING Eleventh Edition&"Arial,Regular"&10
&L&"Arial,Bold"Chapter 12: Partnerships&R&"Arial,Bold"Page &P of &N
P12-35B
| P12-35B | |||||||||
| Requirements | |||||||||
| Record Ho’s withdrawal from the partnership under the following independent plans: | |||||||||
| 1. | In a personal transaction, Ho sells her equity to Wong, who pays Ho $120,000 for her interest. Kung and Liang agree to accept Wong as a partner. | ||||||||
| 2. | The partnership pays Ho cash of $20,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest. | ||||||||
| 3. | The partnership pays Ho $55,000 for her book equity. | ||||||||
| 4. | The partnership pays Ho $8,000 for her book equity. | ||||||||
| Solution: | |||||||||
| Requirement 1 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 2 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 3 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 4 | |||||||||
| Date | Accounts and Explanation | Debit | Credit |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING Eleventh Edition&"Arial,Regular"&10
&L&"Arial,Bold"Chapter 12: Partnerships&R&"Arial,Bold"Page &P of &N
P12-36B
| P12-36B | |||||||||
| Requirements | |||||||||
| 1. | Assume the non-cash assets are sold for $165,000. Journalize the liquidation transactions. | ||||||||
| 2. | Assume the non-cash assets are sold for $80,000. Journalize the liquidation transactions. | ||||||||
| Solution: | |||||||||
| Requirement 1 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 2 | |||||||||
| Date | Accounts and Explanation | Debit | Credit |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING Eleventh Edition&"Arial,Regular"&10
&L&"Arial,Bold"Chapter 12: Partnerships&R&"Arial,Bold"Page &P of &N
P13-43B
| P13-43B | |||||||||
| Requirements | |||||||||
| 1. | Record the transactions in the general journal. | ||||||||
| 2. | Prepare the stockholders’ equity section of Waco’s balance sheet at October 31, 2016. Assume Cell’s net income for the month was $91,000. | ||||||||
| Solution: | |||||||||
| Requirement 1 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 2 | |||||||||
| WACO WIRELESS | |||||||||
| Balance Sheet (Partial) | |||||||||
| October 31, 2016 | |||||||||
| Stockholders’ Equity |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"Chapter 13: Corporations&R&"Arial,Bold"Page &P of &N
P13-44B
| P13-44B | ||||||||
| Requirement | ||||||||
| 1. | Record the transactions in Summerborn’s general journal. | |||||||
| 2. | Prepare the Summerborn’s stockholders’ equity section of the balance sheet as of December 31, 2016. Assume that Summerborn was authorized to issue 1,500 shares of preferred stock and 500,000 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, 2016, is $2,080,000. | |||||||
| Solution: | ||||||||
| Requirement 1 | ||||||||
| Date | Accounts and Explanation | Debit | Credit | |||||
| Date | Accounts and Explanation | Debit | Credit | |||||
| Requirement 2 | ||||||||
| SUMMERBORN MANUFACTURING CO. | ||||||||
| Balance Sheet (Partial) | ||||||||
| December 31, 2016 |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"Chapter 13: Corporations&R&"Arial,Bold"Page &P of &N
P13-46B
| P13-46B | ||
| Requirements | ||
| 1. | Compute Medina Company’s earnings per share for 2016. Assume the company paid the minimum preferred dividend during 2016. | |
| 2. | Compute Medina Company’s price/earnings ratio for 2016. Assume the company’s market price per share of common stock is $7. | |
| 3. | Compute Medina Company’s rate of return on common stockholders’ equity for 2016. Assume the company paid the minimum preferred dividend during 2016. | |
| Solution: | ||
| Requirement 1 | ||
| Requirement 2 | ||
| Requirement 3 |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"Chapter 13: Corporations&R&"Arial,Bold"Page &P of &N
S14A-13
| S14A-13 | ||
| Requirements | ||
| 1. | Calculate the present value of each scenario using a 8% discount rate. Which scenario yields the highest present value? | |
| 2. | Would your preference change if you used a 12% discount rate? | |
| Solution: | ||
| Requirement 1 | ||
| Requirement 2 |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"&10Chapter 14: Long-Term Liabilities&R&"Arial,Bold"&10Page &P of &N
E14-17
| E14-17 | |||||||||
| Requirements | |||||||||
| 1. | Journalize the transactions for the company. | ||||||||
| 2. | Considering the given transactions only, what are Caldwell Video Productions’ total liabilities on December 31, 2017? | ||||||||
| Solution: | |||||||||
| Requirement 1 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 2 |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"&10Chapter 14: Long-Term Liabilities&R&"Arial,Bold"&10Page &P of &N
E14-18
| E14-18 | |||||||||
| Requirements | |||||||||
| 1. | Journalize the note issuance on January 1, 2016 (explanations are not required). | ||||||||
| 2. | Prepare an amortization schedule for the first two payments. | ||||||||
| 3. | Journalize the first payment on January 31, 2016 (do not round). | ||||||||
| 4. | Journalize the second payment on February 29, 2016 (do not round). | ||||||||
| Solution: | |||||||||
| Requirement 1 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 2 | |||||||||
| Beginning Balance | Principal Payment | Interest Expense | Total Payment | Ending Balance | |||||
| Interest Expense | = | Carrying Amount | × | Market interest rate | × | Time | |||
| Requirement 3 | |||||||||
| Date | Accounts and Explanation | Debit | Credit | ||||||
| Requirement 4 | |||||||||
| Date | Accounts and Explanation | Debit | Credit |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"&10Chapter 14: Long-Term Liabilities&R&"Arial,Bold"&10Page &P of &N
E14-21
| E14-21 | ||||||||
| Requirements | ||||||||
| 1. | Journalize the issuance of the bonds on June 30. | |||||||
| 2. | Journalize the semiannual interest payment on December 31. | |||||||
| Solution: | ||||||||
| Requirement 1 | ||||||||
| Date | Accounts and Explanation | Debit | Credit | |||||
| Requirement 2 | ||||||||
| Date | Accounts and Explanation | Debit | Credit |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"&10Chapter 14: Long-Term Liabilities&R&"Arial,Bold"&10Page &P of &N
E14-28
| E14-28 | |||||||
| Compute the debt to equity ratio at December 31, 2016. | |||||||
| Solution: | |||||||
| Assets: | Liabilities: |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"&10Chapter 14: Long-Term Liabilities&R&"Arial,Bold"&10Page &P of &N
P14-31A
| P14-31A | |||||||
| Requirements | |||||||
| 1. | Journalize the transactions in the Smith Pharmacies general journal. Round all answers to the nearest dollar. Explanations are not required. | ||||||
| 2. | Prepare the liabilities section of the balance sheet for Smith Pharmacies on March 1, 2017. | ||||||
| Solution: | |||||||
| Requirement 1 | |||||||
| Date | Accounts and Explanation | Debit | Credit | ||||
| Requirement 2 | |||||||
| SMITH PHARMACIES | |||||||
| Balance Sheet (Partial) | |||||||
| March 1, 2017 | |||||||
| Liabilities |
&L&"Arial,Bold"&12HORNGREN'S ACCOUNTING - Eleventh Edition
&L&"Arial,Bold"&10Chapter 14: Long-Term Liabilities&R&"Arial,Bold"&10Page &P of &N
