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Homework answers / question archive / Chec 16 The partnership of Jordan and O'Neal began business on January 1, 20x7

Chec 16 The partnership of Jordan and O'Neal began business on January 1, 20x7

Accounting

Chec 16 The partnership of Jordan and O'Neal began business on January 1, 20x7. Each partner contributed the following assets (the noncash assets are stated at their fair values on January 1, 20x7): 5.88 points Canh Inventorld Land Equipecat Jordan $ 60,600 81,900 -0- 101,300 O'Neal $ 50, 100 -0- 130, 600 -- Rook The land was subject to a $51,700 mortgage, which the partnership assumed on January 1, 20x7. The equipment was subject to an installment note payable that had an unpaid principal amount of $20,700 on January 1, 20x7. The partnership also assumed this note payable. Jordan and O'Neal agreed to share partnership income and losses in the following manner. Print Interest on beginning capital balances Salaries Remainder Jordan 1 30 38 $12,400 $12,400 CON 408 References During 20X7, the following events occurred: 1. Inventory was acquired at a cost of $30,200. At December 31, 20x7, the partnership owed $6,400 to its suppliers. 2. Principal of $6,600 was paid on the mortgage. Interest expense incurred on the mortgage was $2.300, all of which was paid by December 31, 20x7. 3. Principal of $3,700 was paid on the installment note. Interest expense incurred on the installment note was $1900, all of which was paid by December 31, 20X7. 4. Sales on account amounted to $160,500. At December 31, 20X7, customers owed the partnership $22,300. 5. Selling and general expenses, excluding depreciation, amounted to $34,900 At December 31, 20x7, the partnership owed $6,800 of accrued expenses. Depreciation expense was $6,300. 6. Each partner withdrew $210 each week in anticipation of partnership profits. 7. The partnership's Inventory at December 31, 20X7, was $21,400 8. The partners allocated the net income for 20X7 and closed the accounts, Additional Information On January 1, 20x8, the partnership decided to admit Hill to the partnership. On that date. Hill invested $112,340 of cash into the partnership for a 20 percent capital interest. Total partnership capital after Hill was admitted totaled $467,000. Required: ME Graw Hill < Prev 16 of 1723 Next > 16 5.88 points Additional Information On January 1, 20x8, the partnership decided to admit Hill to the partnership. On that date, Hill Invested $112,340 of cash into the partnership for a 20 percent capital interest. Total partnership capital after Hill was admitted totaled $467,000. Required: a. Prepare journal entries to record the formation of the partnership on January 1, 20X7, and to record the events that occurred during 20x7. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round the final answers to nearest dollar amount.) Answer is complete and correct. No Transaction Debit Credit 1 General Journal Cash Inventory Land Equipment Mortgage payable Installment note payable Jordan, Capital O'Neal, Capital 110,700 81,900 130,600 101,300 OOOOOOOO 51,700 20,700 223,100 129,000 Answer is complete but not entirely correct. No Event General Journal Credit Debit 30,200 ? 01 Inventory Cash Annus navale OOO 23,800 6400 Mc Gew HEN < Prev 16 of 17 Next > 16 Answer is complete but not entirely correct. No Event General Journal Credli Debit 30.200 A 01 5.88 points Inventory Cash Accounts payable ololo 23,800 6,400 B 02 Mortgage payable Interest expense Cash ooo 6,600 2,300 8.900 ? 03 Installment note payable Interest expense Cash 3,700 1,900 5,600 D 04 Accounts receivable Cash Sales OOO OOO OOO 22.300 138.200 160,500 E (a)05 34,900 Selling and general expenses Cash Accrued expenses payable 28,100 6,800 olo F (bos lo 6,300 Depreciation expense Accumulated depreciation 6,300 G 06 Jordan, Drawing O'Neal, Drawing 10,920 10.920 OC ME Gaw < Prev 16 of 17 18 Next > Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate come 16 Acored expenses payage 30 F (b)05 O 6.300 Depreciation expense Accumulated depreciation 6,300 588 points G 06 10.920 Jordan, Drawing O'Neal, Drawing Cash OOO 10.920 21,840 H Salles 160,500 Income summary 160,500 1 (a) 90.700 Cost of goods sold Inventory 90,700 J (b)08 136,100 Income summary Cost of goods sold Selling and general expenses Depreciation expense Interest expense ooooo 90.700 34.900 6,300 4,200 K (c)08 24 400 Income summary Jordan Capital O'Neal Capital 12 200 12200 14.640 X L (dyos Jordan, Capital O'Neal, Capital Oot 10,920 10,920 Mc Grow Prev 16 of 17 Next > Seved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does 16 (a)08 Cost of goods sold Inventory 90,700 90,700 5.88 points J (b)08 136,100 Income summary Cost of goods sold Selling and general expenses Depreciation expense Interest expense OOOOO 90,700 34,900 6,300 4,200 K (c)OB 24,400 Income summary Jordan, Capital O'Neal, Capital 12,200 x 12200 14,640 L (d)08 Jordan, Capital O'Neal, Capital Jordan, Drawing O'Neal, Drawing 10,920 10,920 OOO 10,920 10,920 b. Prepare the income statement for the Jordan O'Neal Partnership for the year ended December 31, 20x7. Help Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate complet 16 c. Prepare a balance sheet for the Jordon-O'Neal Partnership at December 31, 20x7. (Round the final answers to nearest dollar amount.) 5.88 points Answer is not complete. JORDAN O'NEAL PARTNERSHIP Balance Sheet At December 31, 20X7 Assets Cash Accounts receivable 22 300 Inventory Land Equipment (net) ooOOO 130 600 S 152.900 Total Assets Liabilities and Capital Liabilities: Accounts payable Accrued expenses payable Installment note payable Mortgage payable $ OOOO 6.400 6,800 17.000 45,100 $ 75,300 Total liabilities Capital Jordan, Capital O'Neal Capital oo Mc Grave < Prev 16 of 17 Next > 75.300 Capital: Jordan, Capital O'Neal, Capital 8 0 Total capital Total Liabilities and Capital 75,300 d. Prepare the journal entry for the admission of Hill on January 1, 20X8. (If no entry is required for a transaction/event, se journal entry required" in the first account field.) Answer is not complete. No Event General Journal Debit Credit ? 1 112,340 Cash Jordan, Capital O'Neal, Capital 16 of 17 Next > < Prev

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