Accounting-Business

Completing Partnership Financial Statements & Journalizing Transactions to Liquidate a Partnership

Your Name:
Subject:
Test 23 (77 pts Completing Partnership Financial Statements and Journalizing Transactions to Liquidate a Partnership)
Date Completed:
General Directions:
The enclosed worksheets are the application portion of the complete Chapter 23 Test (23A).
(The objective portion of Chapter 23 – 23A Obj – is available in our online course through a separate link.)
In order to complete this test, students will need Excel 2007 or newer and basic spreadsheet skills.
Students may complete this test by typing simple values or by using formulas.
Students are only being tested for their understanding of the accounting principles taught in the related chapter
Use the area below to include any comments or concerns regarding the exam.
This is a test and should be completed only by the individual submitting for evaluation. Do not collaborate no
Review your work carefully. Make sure you use Save As when absolutely finished.
Save your finished work to a filename that includes “Test23 YOUR NAME” in the filename. In other words add
Submit the completed file for grading to your instructor who will review and provide feedback.
Linda Amor
Test 23 Part 3 – Completing Partnership Financial Statements
Supreme Systems prepared the following worksheet for the year ended December 31 of the current year.
Directions: (Use the area provided below worksheet to complete Part 3)
1. Prepare a distribution of net income statement. Net income or loss is to be shared equally.
2. Prepare an owner’s equity statement. No additional investments were made.
Superior Systems
Work Sheet
For Year Ended December 31, 20xx
Account Title
Cash
Petty Cash
Accounts Receivable
Merchandise Inventory
Supplies-Office
Suplies-Store
Prepaid Insurance
Accounts Payable
Sales Tax Payable
Jacob Green, Capital
Jacob Green, Drawing
Laura Green, Capital
Laura Green, Drawing
Income Summary
Sales
Purchases
Advertising Expense
Credit Card Fee Expense
Insurance Expense
Miscellaneous Expense
Rent Expense
Supplies Expense-Office
Supplies Expense-Store
Utiliies Expense
Net Income
Test 23A
Trial Balance
Adjustments
26,550.00
250.00
7,500.00
167,095.00
3,090.00
3,360.00
2,960.00
Income Statement
Balance Sheet
26,550.00
250.00
7,500.00
157,752.00
1,158.00
1,220.00
1,270.00
9,343.00
1,932.00
2,140.00
1,690.00
5,250.00
615.00
82,200.00
5,250.00
615.00
82,200.00
10,875.00
10,875.00
78,995.00
78,995.00
10,550.00
10,550.00
9,343.00
9,343.00
159,565.00
159,565.00
75,835.00
3,210.00
1,357.00
1,690.00
1,520.00
11,040.00
1,932.00
2,140.00
1,433.00
75,835.00
3,210.00
1,357.00
1,690.00
1,690.00
1,520.00
11,040.00
1,932.00
2,140.00
1,433.00
326,625.00
328,315.00
15,105.00
15,105.00
109,500.00
159,565.00
217,125.00
50,065.00
159,565.00
167,060.00
50,065.00
159,565.00
217,125.00
217,125.00
Income Statement
Test 23 Part 4 – Journalizing Transactions to Liquidate a Partnership
Bud Harned and Marge O’Brien agree to liquidate their partnership on June 30 of the current year.
On that date, after financial statements were prepared and closing entries were posted, the general ledger accounts
had the following balances.
Cash
$
10,525.00
Supplies
$
275.00
Office Equipment
$
8,000.00
Acc. Dep.-Office Equipment
$
5,500.00
Accounts Payable
$
650.00
Bud Harned, Capital
$
7,350.00
Marge O’Brien, Capital
$
5,300.00
GENERAL JOURNAL
DATE
ACCOUNT TITLE
DOC.
NO.
1
2
3
4
CASH RECEIPTS JOURNAL
DATE
DOC.
NO.
1
2
3
4
5
6
CASH PAYMENTS JOURNAL
DATE
1
2
3
4
5
6
DOC.
NO.
year.
eneral ledger accounts
Directions: Journalize transactions in the journals provided. Source documents abbreviated as check, C; memorandum, M
1-Jul Received cash from the sale of office equipment, $3,500.00. R110.
1-Jul Received cash from the sale of supplies, $175.00. R111.
3-Jul Paid cash to all creditors for amounts owed. C354.
4-Jul Distributed balance of Losses and Gains on Realization to Bud Harned, 55%; to Marge O’Brien, 45%. M89.
4-Jul Distributed remaining cash to partners. C355 and C356.
GENERAL JOURNAL
12
PAGE
POST REF.
CREDIT
DEBIT
ASH RECEIPTS JOURNAL
1
POST REF.
GENERAL DEBIT
2
3
4
GENERAL CREDIT
ACCOUNTS RECEIVABLE
CREDIT
SALES CREDIT
SH PAYMENTS JOURNAL
PAGE
1
POST REF.
GENERAL DEBIT
2
GENERAL CREDIT
3
4
ACCOUNTS PAYABLE DEBIT
PURCHASES
DISCOUNT CREDIT
ated as check, C; memorandum, M; receipt, R.
o Marge O’Brien, 45%. M89.
1
PAGE
5
6
7
SALES TAX PAYABLE
CREDIT
SALES DISCOUNT
DEBIT
CASH DEBIT
1
5
CASH CREDIT