AC 310 Week 7 Problem #3

David, Matt, and Chris are forming The Doctor Partnership. David is transferring $30,000 of personal cash and equipment worth $25,000 to the partnership. Matt owns land worth $18,000 and a small building worth $75,000, which he transfers to the partnership. There is a long-term mortgage of $20,000 on the land and building, which the partnership assumes. Chris transfers cash of $7,000, accounts receivable of $36,000, supplies worth $3,000, and equipment worth $22,000 to the partnership. The partnership expects to collect $32,000 of the accounts receivable. Prepare a classified balance sheet for the partnership after the partners’ investments on December 31, 2012.

 

Chapter 12 Exercises

5000

9000)

-4500

FALSE

FALSE

TRUE

TRUE

FALSE

TRUE

FALSE

																																																																																																																																																																		Prob. 1	Division of Net Income
Lill	Dil	Total
Salary allowance	1	5000	10000	25000
Interest allowance	7000
Total interest	12000
Total salaries and interest	22000	15000	37000
Remaining deficiency	(		-4500
Total remainder	-9000
Total Division	18500	10500	28000
Prob. 2
1.					FALSE
A partnership is an association of two or more persons…
2.
The legal requiremnets for forming a partnership is easy
3.				TRUE
4.	The net income of a partnership is not taxed as a…
5.
6.
7.
When a partnership is dissolved, each partner has a claim on total…
8.
9.
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

Chapter 13 Exercises

in Excess of Par – Common Stock

Paid-in capital

50000

50000

(

Prob 4
Account Titles	Debit	Credit
Land	85000
Common Stock			50000
	Paid-in capital	35000
Prob. 5
Stockholders’ equity
Capital stock
Common stock, $10 par, 5000 shares issued
Total capital stock
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