Re: Accounting Homework

lesson_12_assignment.xls

Home >Business & Finance homework help >Accounting homework help >Re: Accounting Homework

Data & Forms P12-01


Problem 12-01			Student Name:
Given Data:		Instructions:
Carry all calculations to 4 decimal places rounded and enter as decimal.		First, calculate preliminary amounts needed for computing income/loss shares.
Cell is formatted to change decimal to percentage.		Next, calculate income/loss shares using all four plans for Years 1, 2, and 3.
Round income(loss) share to nearest dollar.
Baker and Farney's Alternative Plans		Preliminary Calculations
to Share Net Incomes and Net Losses
Plan A: In the ratio of initial investment		Plans A and C	Percentages based on initial investments:
Baker's initial investment	$ 40,000		Baker			0
Farney's initial investment	60,000		Farney			0
Plan B: In proportion to time devoted to business.		Plan B	Percentages based on time:
Baker works quarter-time (10 hours a week).			Baker			0
Farney works full-time (40 hours a week).			Farney			0
Plan C: Salary allowance of $3,000 monthly to Farney and balance in		Plans C and D	Salary allowance for the year
ratio of initial investments			Farney			0
Plan D: Salary allowance of $3,000 monthly to Farney, 10% interest on		Plan D	10% interest allowances on beginning investments
initial investments, and balance equally			Baker			0
			Farney			0
		Year 1: Assume expected net income of $75,000.
		Plan A: In the ratio of initial investments (Baker of $40,000 and Farney $60,000).
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				75,000
		Total allocated (answer goes here)				75,000
				0	0
		Plan B: In the proportion of time devoted to the business. Baker works quarter-time
		(10 hours per week) and Farney works full-time (40 hours per week).
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				75,000
		Total allocated (answer goes here)				75,000
				0	0
		Plan C: Salary allowance of $3,000 monthly to Farney and balance in ratio of
		initial investments.
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				75,000
		Total allocated (answer goes here)				75,000
				0	0
		Plan D: Salary allowance of $3,000 monthly to Farney, 10% interest on initial
		investments, and balance equally.
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				75,000
		Total allocated (answer goes here)				75,000
				0	0
		Year 2: Assume expected net income of $45,000.
		Plan A: In the ratio of initial investments (Baker of $40,000 and Farney $60,000).
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				45,000
		Total allocated (answer goes here)				45,000
				0	0
		Plan B: In the proportion of time devoted to the business. Baker works quarter-time
		(10 hours per week) and Farney works full-time (40 hours per week).
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				45,000
		Total allocated (answer goes here)				45,000
				0	0
		Plan C: Salary allowance of $3,000 monthly to Farney and balance in ratio of
		initial investments.
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				45,000
		Total allocated (answer goes here)				45,000
				0	0
		Plan D: Salary allowance of $3,000 monthly to Farney, 10% interest on initial
		investments, and balance equally.
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				45,000
		Total allocated (answer goes here)				45,000
				0	0
		Year 3: Assume expected net loss of $18,000.
		Plan A: In the ratio of initial investments (Baker of $40,000 and Farney $60,000).
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				-18000
		Total allocated (answer goes here)				-18000
				0	0
		Plan B: In the proportion of time devoted to the business. Baker works quarter-time
		(10 hours per week) and Farney works full-time (40 hours per week).
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				-18000
		Total allocated (answer goes here)				-18000
				0	0
		Plan C: Salary allowance of $3,000 monthly to Farney and balance in ratio of
		initial investments.
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				-18000
		Total allocated (answer goes here)				-18,000
				0	0
		Plan D: Salary allowance of $3,000 monthly to Farney, 10% interest on initial
		investments, and balance equally.
		Calculations:		Baker	Farney	Total
		Net income/net loss to allocate				-18,000
		Total allocated (answer goes here)				-18,000
				0	0

Enter appropriate data in yellow cells. Your answers will be verified.

Data & Forms P12-02


Problem 12-02					Student Name:
Given Data:		Forms:
		Part 1:
BRB PARTNERSHIP		BRB PARTNERSHIP
		Income/Loss
Bill contribution	$ 183,750	Sharing
Ron contribution	131,250	Plan	Calculations	Bill	Ron	Barb	Totals
Barb contribution	210,000
Expected annual net income	225,000	A	$225,000/3
				0	0	0	0
Plans to share net incomes and losses:
Plan A: Share equally		B	$225,000x($183,750/$1,050,000)
Plan B: In ratio of initial contributions
Plan C:
Salary to Bill	$ 40,000		Total allocated
Salary to Ron	30,000			0	0	0	0
Salary to Barb	45,000	C	Net income
Interest allowance on initial contributions	10%		Salary allowances
Balance shared equally			Balance of income
			Interest allowances
Part 1 data:			Balance of income
Net income for year	$ 225,000		Balance allocated
			Balance of income
Part 2 data:			Shares of partners
Income earned	$ 104,500			0	0	0
Bill's withdrawals	17,000		Part 2:
Ron's withdrawals	24,000		BRB PARTNERSHIP
Barb's withdrawals	32,000		Statement of Partners' Equity
			For Year Ended December 31
Part 3 data:
Income earned	$ 104,500			Bill	Ron	Barb	Total
			Beginning capital balances
			Plus: Investments by owners
			Plus: Net income
			Salary allowances
			Interest allowances
			Balance allocated equally
			Total net income
			Total
			Less partners' withdrawals
			Ending capital balances
				0	0	0	0
		Part 3:
		BRB PARTNERSHIP
		General Journal
		Date	Account Titles		Debit	Credit
		Dec. 31	Income Summary
			Bill, Capital				0
			Ron, Capital				0
			Barb, Capital				0
		31	Bill, Capital
			Ron, Capital
			Barb, Capital
			Bill, Withdrawals				0
			Ron, Withdrawals				0
			Barb, Withdrawals				0

Enter appropriate data in yellow cells. Your answers for each plan will be verified.

Enter the formula used as text in this column.

Round your answers for "Shares of partners" to the nearest whole dollar.

Enter appropriate data in yellow cells. Your answers for "Ending capital balances" will be verified.

Enter appropriate data in yellow cells. Your Credit entries will be verified.