The inexperienced accountant for the Fox, Gee and Hay Partnership prepared the following journal entries during...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The inexperienced accountant for the Fox, Gee and Hay Partnership prepared the following journal entries during the year ended August 31, 2012: Sept 1 Cash Goodwill Fox, Capital Gee, Capital 37,500 112,500 Hay, Capital 50,000 To record admission of Hay for a 20% interest in the net assets and goodwill to old partners. Aug. 31 30,000 Income Summary 50,000 150,000 Fox, Capital Gee, Capital Hay, Capital 6,000 18,000 6,000 To divide net income for the year using the revised profit and loss ratio. Provision for annual salary of P40,000 to Hay was disregarded because the net income was only P30,000. Additional information: Prior to admission of Hay by investing P50,000, the net assets of the partnership was determined to be P100,000, 60% of which was attributed to Fox. The admission of Hay should have been recorded by bonus method. There was no additional investment nor withdrawals made during the year. Compute for the capital balance of Gee as of August 31, 2012. Round answer to a whole number. The inexperienced accountant for the Fox, Gee and Hay Partnership prepared the following journal entries during the year ended August 31, 2012: Sept 1 Cash Goodwill Fox, Capital Gee, Capital 37,500 112,500 Hay, Capital 50,000 To record admission of Hay for a 20% interest in the net assets and goodwill to old partners. Aug. 31 30,000 Income Summary 50,000 150,000 Fox, Capital Gee, Capital Hay, Capital 6,000 18,000 6,000 To divide net income for the year using the revised profit and loss ratio. Provision for annual salary of P40,000 to Hay was disregarded because the net income was only P30,000. Additional information: Prior to admission of Hay by investing P50,000, the net assets of the partnership was determined to be P100,000, 60% of which was attributed to Fox. The admission of Hay should have been recorded by bonus method. There was no additional investment nor withdrawals made during the year. Compute for the capital balance of Gee as of August 31, 2012. Round answer to a whole number.
Expert Answer:
Answer rating: 100% (QA)
Lets calculate Gees capital balance Initial Net Assets P100000 x 60 attrib... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
Students also viewed these accounting questions
-
Five resistors, each with a resistance of 15.1, are placed in parallel across a battery of potential difference 30.1 V. What is the current through the battery? Give your answer in Amperes. Don't use...
-
The consolidated statements of cash flows and related note disclosure for Sirius XM Canada Holdings Inc. are in Exhibits 5-16A and B. Sirius broadcasts satellite radio channels to subscribers....
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
For each transformation below, a C-C bond forming strategy is required to complete the synthesis. (a) Identify the C-C formation strategy that will be effective from the list below and write it on...
-
As the following table shows, projections indicate that the percent of U.S. adults with diabetes could dramatically increase. (a) Find a logarithmic model that fits the data in the table, with x = 0...
-
Pirates Incorporated had the following balances at the beginning of September. The following transactions occur in September. September 1 Provide services to customers for cash, $4,700. September 2...
-
(a) Use a histogram to graph the empirical distribution of the duration times between American Airline trades. Compare the graph with Figure 2.9. Figure 2.9. (b) Interpret the shape of the...
-
David's Paint Supply experienced the following events during 2012, its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Purchased inventory for $24,000 cash. 3....
-
The following data which are based on the research conducted by Deakin (1972) present the means of several financial statement items for a sample of 32 failed companies and a matched sample of 32...
-
Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2016, the firms general ledger contained the accounts and balances that follow. ACCOUNTS...
-
Upon review, the product received is Bird food instead of cat food. Therefore, the Harmonized Tariff number was incorrect. The proper HS # should have been 2309.90.39.35. The duty rate is free for...
-
As an actuarial analyst, you are working with a large insurance company to help it understand claims distribution for private passenger automobile policies. You have available claims data for a...
-
How many slits are needed in a diffraction grating that must resolve the \(m=1\) maxima of two spectral lines at \(\lambda_{\mathrm{s}}=610 \mathrm{~nm}\) and \(\lambda_{\mathrm{l}}=615...
-
Monochromatic \(545-\mathrm{nm}\) light is incident on a 15 - \(\mu \mathrm{m}\)-wide slit. If the diffraction pattern is cast on a screen \(710 \mathrm{~mm}\) from the slit, what is the linear...
-
A diffraction grating has adjacent slits separated by \(4.00 \mu \mathrm{m}\). When yellow light \((\lambda=589 \mathrm{~nm})\) is incident on the grating, what are the angular positions of the...
-
Is it possible to shine two laser beams of visible light into the same diffraction grating so that the dark fringes created by one beam overlay the bright fringes created by the other beam for all...
-
Lisa is framing ) rectangular painting . The length is three more than twice the width. Sbe uses 30 inches of (raming malerial What is the length of he painting?
-
Chapter 9 Stock Valuation at Ragan Engines Input area: Shares owned by each sibling Ragan EPS Dividend to each sibling Ragan ROE Ragan required return Blue Ribband Motors Corp. Bon Voyage Marine,...
-
(a) What is the purpose of internal earnings targets? (b) What is the risk associated with internal earnings targets?
-
Bad debt expense for the year was estimated to be $12,000. Total accounts written off as uncollectible during the year were $8,100. Make the necessary summary journal entries to record this...
-
On January 1, the lessee company signed an operating lease contract. The lease contract calls for $3,000 payments at the end of each year for 10 years. The rate implicit in the lease is 10%. Make the...
-
Ideally the ______________ phase of the systems development from the phases given below requires maximum efforts. (a) Testing (b) Documentation (c) Feasibility checking (d) All of these
-
A conducting loop having radius \(20 \mathrm{~cm}\) is held fixed, and there is a magnetic flux of \(0.6 \mathrm{~T} . \mathrm{m}^{2}\) through the loop. When the magnetic field is turned off, the...
-
To measure the magnitude of Earth's magnetic field \(B_{E}\), you use a single conducting coil with an area \(A=10 \mathrm{~cm}^{2}\) rotating at an angular speed \(\omega\), and measure the peak emf...
Study smarter with the SolutionInn App