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Question
Jackson and O'Neill form a partnership that produces gates. Jackson provides $30,000 of capital while O'Neill contributes $90,000 of capital; they agree to split net income by the same proportion. The partnerships net income is $80,000 for the first year. They did not draw any income out of the business or add any additional capital during the first year. At the end of the year, the partners' equity is:
A) $70,000 for Jackson and $130,000 for O'Neill for a total of $200,000.
B) $200,000 minus income tax expense for the partnership.
C) $200,000 minus the income tax paid by each partner.
D) $50,000 for Jackson and $150,000 for O'Neill for a total of $200,000.
Answer
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Related questions
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Q:
A corporation prepared its statement of cash flows for the year. The following information is taken from that statement: Net cash provided by operating activities
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Cash flows from financing activities:
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D) are always positive unless the company is experiencing serious financial trouble.
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Which of the following represent cash outflows from financing activities?
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Q:
Which of the following statements about calculation of cash flows from operating activities under the indirect method is correct?
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Q:
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Use the information above to answer the following question. What is the depreciation expense for 2016?
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Use the information above to answer the following question. If the units-of-production method is used, the depreciation expense for this period is:
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Q:
Which of the following statements about straight-line depreciation is correct?
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B) When the straight-line method is used to compute depreciation, an asset's carrying value remains constant over the life of the asset.
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Q:
Which of the following is not an amount that is needed to calculate straight-line depreciation?
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B) An estimate of the assets useful economic life to the company
C) The estimated amount that the company will receive when it disposes of the asset
D) The cost the company will be required to incur to replace the asset
Q:
Which of the following statements most appropriately describes the purpose of depreciating a long-lived tangible asset?
A) To indicate how the asset has physically deteriorated
B) To show that the asset will eventually and gradually become obsolete
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D) To match the cost of the asset to the period in which it generates revenue
Q:
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A) Debit Cash for $250,000, debit Notes Payable for $250,000, and credit Equipment for $500,000
B) Debit Equipment for $500,000, credit Cash for $250,000, and credit Notes Payable for $250,000
C) Debit cash for $250,000, debit Notes Payable for $250,000, credit Equipment for $450,000, and credit Operating Expenses for $50,000
D) Debit Equipment for $450,000, debit Operating Expenses for $50,000, credit cash for $250,000, and credit Notes Payable for $250,000
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Your company buys a computer system for $3 million and pays the vendor $200,000 to install the computer system. Your company should record:
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Q:
Under the cost principle, a company capitalizes:
A) all ordinary repair expenditures incurred in the use of an asset.
B) any interest incurred in borrowing money to help pay for asset acquisitions.
C) all reasonable and necessary costs of acquiring an asset and preparing it for use.
D) the total market value of individual assets acquired in a basket purchase.
Q:
The following information was summarized from the adjusted trial balance of Reliance Yacht Repair, Inc. as of September 30, 2015, the end of the companys fiscal year. Accounts Payable
$1,500 Accounts Receivable
6,000 Accumulated DepreciationEquipment
2,000 Cash
9,420 Common Stock
9,300 Equipment
4,000 Insurance Expense
500 Interest Expense
80 Notes Payable (long-term)
2,500 Notes Receivable (short-term)
5,500 Prepaid Rent
500 Retained Earnings
3,200 Service Revenue
11,000 Supplies
1,500 Supplies Expense
2,500 Unearned Revenue
2,000 Utilities Expense
1,500 Required:
Part a. Prepare the closing entry for the company for the year ended September 30, 2015.
Part b. Draw a T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entry, and then determine the ending balance.
Part c. Prepare a post-closing trial balance at September 30, 2015.
Q:
On December 31, 2016, Ditka Inc. had Retained Earnings of $267,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $168,100 and interest revenue of $81,300. The company used supplies in the amount of $87,900, advertising expenses were $16,400, salaries and wages totaled $18,300, and income tax expense was calculated as $13,700. During the year, the company declared and paid dividends of $6,000.
Required:
Part a. Prepare the closing entries dated December 31, 2016.
Part b. Draw a T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entries, and then determine the ending balance.