AC310 Problem 5

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
Current Assets
	Cash		37000
	Accounts receivable		32000
	Supplies		3000		72000
Equipment			47000
Land			18000
Building			75000
					140000
	Total Assets				212000
Long term Mortgage			20000		20000
	Total Liabilties				20000
Liabilities and Owner's Equity
David's Capital				55000
Matt's Capital				73000
Chirs 's Capital				64000
	Total Captal Accpunts				192000
Total Liabilties and Total Captal Accpunts					212000

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