AC 310 Week 7 Problem #3

ac310_week_7_assignment.xlsx

Chapter 12 Exercises

Prob. 1			Division of Net Income
			Lill	Dil	Total
Salary allowance			15000	10000	25000
Interest allowance			7000
				5000
Total interest					12000
Total salaries and interest			22000	15000	37000
Remaining deficiency (9000)			-4500
				-4500
Total remainder					-9000
Total Division			18500	10500	28000
Prob. 2
1.	FALSE
	A partnership is an association of two or more persons…
2.	FALSE
	The legal requiremnets for forming a partnership is easy
3.	TRUE
4.	FALSE	The net income of a partnership is not taxed as a…
5.	TRUE
6.	TRUE
7.	FALSE
	When a partnership is dissolved, each partner has a claim on total…
8.	TRUE
9.	FALSE
	Mutual Agency is a disadvantage of the partnership form…
Prob. 3
The Doctor Paretnership
Balance Sheet
December 31, 2012
Assets
Liabilities and Owner's Equity

Prob 4
	Account Titles	Debit	Credit
	Land	85000
	Common Stock		50000
	Paid-in capital in Excess of Par - Common Stock		35000
Prob. 5
Stockholders' equity
	Paid-in capital
	Capital stock
	Common stock, $10 par, 5000 shares issued		50000
	Total capital stock		50000
	Additional paid-in capital
	In excess of par- common stock	20000
	From treasury stock	11000
	Total additional pain-in capital		31000
	Total paid-in capital		81000
	Reatained Earnings		45000
	Total paid-in capital & retained earnings		126000
	Less treasury stock		(
	Total stockholder's equity