Question 1.
Kramer and Knox began a partnership by investing $60,000 and $80,000, respectively. During its first year, the partnership earened $160,000. Prepare calculations showing how the $160,000 income should de allocated to the partners under each of the following three separete plans for sharing income and loss: (1) the partners failed to agree on a method to share income ; (2) the partners agreed to share income and loss in proportion to their initial investments; and (3) the partners agreed to share income by granting a $50,000 per year salary allowance to Kramer, a $40,000 per year salary allowance to Knox, 10% interest on thir initial capital investments, and the remaining balance shared equally.
Note: Income allocation in a partnership.
Plan 3, Kramer , $84,000
Question2.
Prepare journal entries to record the following four separate issuances of stock.
a. 2000 shares of no-per common stock are issued to the corporation’s promoters in exchanges for their efforts, estimated to be worth $40,000. The stock has no stated value.
b. 2000 shares of no-per common stock are issued to the corporation’s promoters in exchanges for their efforts, estimated to be worth $40,000. The stock has a $1 per share stated value.
c. 4000 shares of $5 par value common stock are issued for $35,000 cash.
d. 1000 shares of $50 per value preferred stock are issued for $60,000 cash.
Question3.
The stockholders equity of TVX company at the beginning of the day on February 5 follows.
Common stock – $10 par value, 150,000 shares
Authorized, 60,000 shares issued and outstanding ………… $600,000
Paid-in capital in excess of par value, common stock …………… 425,000
Retained earnings …………………………………………………………… 550,000
Total stockholders’ equity …………………………………… $1,575,000
on February 5, the directors declare a 20% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $40 per share on February 5 before the stock dividend. The stock’s market value is $33.40 per share on February 28.
1. Prepare entries to record both the dividend declaration and its distribution
2. one stockholder owned 800 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholders shares immediately before and after the stock dividend of February 5.
3. compute the total market value of the investor’s shares in part 2 as of February 5 and February 28.
Question 4.
Kohler Corporation reports the following components of stock holders’ equity on December 31, 2008.
Common stock – $10par value, 100,00 shares authorized,
40,000 shares issued and outstanding ………………………………….. $400,000
Paid-in capital in excess of par value, common stock $60,000
Retained earnings ……………………………………………………………….. $270,000
Total stockholders’ equity ……………………………….. $730,000
In year 2009, the following transactions affected its stockholders, equity accounts.
Jan. 1 purchased 4,000 shares of its own stock at $20 cash per share .
Jan. 5 Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5.
July 6 sold 1,500 of its treasury shares at $24 cash per share.
Aug 22 Sold 2,500 of its treasury shares at $17 cash per share.
Sept. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct. 28 Paid the dividend declared on September 5.
Dec. 31 closed the $388,000 credit balance ( from net income ) in the income summery account to Retained Earnings.
Required
1. Prepare journal entries to record each of these transactions for 2009
2. Prepare a statement of retained earnings for the year ended December 31, 2009.
3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2009.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
Essays
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admissions
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Reviews
Editing Support
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
Reviews
Revision Support
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.