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13) The partnership of May, Novem, and Octo was dissolved. By August 1, 2011, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on August 1, 2011 (with partner residual profit and loss sharing percentages) was as follows: Cash$              100,000May, capital (30%)$8,000 Novem, capital.
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12) Greta, Harriet, and Ivy have a retail partnership business selling personal computers. The partners are allowed an interest allocation of 6% on their average capital. Capital account balances on the first day of each month are used in determining weighted average capital, regardless of additional partner investment or withdrawal.
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12) Dip Corporation is in a Chapter 11 bankruptcy reorganization. For each of the following transactions relating to the reorganization, show the journal entry that would be required by Dip. Assume that all unsecured liabilities were not reclassified to Prepetition Claims Subject to Compromise. 1.Dip has $200,000 in bonds payable which.
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11) Trustin Corporation is in a Chapter 7 bankruptcy liquidation. For each of the following transactions, show the journal entry that would be required by the trustee of the estate. 1.An electric bill is received for $1,000 which had not yet been recorded by Trustin. 2.Inventory recorded net at $18,000 is sold.
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17) Quantex Corporation has five operating segments, as summarized below: Household Industrial Packaging Storage Services Sales to outside entities 700,000 4,300,000 400,000 1,700,000 100,000 Intersegment sales 50,000 600,000 800,000 200,000 -0- Cost of goods sold 300,000 2,700,000 700,000 900,000 -0- Operating Expenses 200,000 1,300,000 200,000 600,000 30,000 Interest Expense 10,000 40,000 5,000 -0- -0- Income Tax Expense 60,000 210,000 70,000 100,000 18,000 Assets 540,000 1,900,000 1,600,000 70,000 32,000 Required: Determine which of the operating segments of Quantex Corporation are reportable segments for the period shown. 18) Rollins Publishing has five operating segments, as summarized below: Fiction Non-fiction Reference Childrens Periodicals Sales to outside entities 870,000 416,000 796,000 236,000 517,000 Intersegment sales -0- -0- 80,000 -0- 50,000 Cost.
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5) The following data relate to Falcon Corporation's industry segments: Sales to ExternalIntersegment Industry SegmentCustomers     Sales          Assets  Oil Exploration$80,000$$310,000 Refinery240,000720,000 Plastics20,000$20,000120,000 Chemicals220,000160,000980,000 Solar Power20,00075,000270,000 Totals$580,000$255,000$$2,400,000 Required: 1. Which of Falcon's operating segments would be considered reporting segments under the "revenue" test? 2. Which of Falcon's operating segments would be considered reporting segments under the "asset" test? 6) For internal decision-making purposes, Falcon.
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11) Daniel, Ethan, and Frank have a retail partnership business selling personal computers. The partners are allowed an interest allocation of 8% on their average capital. Capital account balances on the first day of each month are used in determining weighted average capital, regardless of additional partner investment or withdrawal.
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8) Lesher Corporation lost their primary contract and entered into voluntary Chapter 7 bankruptcy in the early part of 2012. By July 1, all assets were converted into cash, the secured creditors were paid, and $124,500 in cash was left to pay the remaining claims as follows: Accounts payable$50,000 Claims incurred between.
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3) CommTex Corporation is liquidating under Chapter 7 of the Bankruptcy Act. The accounts of CommTex at the time of filing are summarized as follows: Estimated Realizable Book ValueValue Cash$80,000$80,000 Accounts receivable-net50,00040,000 Inventory80,00060,000 Land10,00020,000 Building-net150,000110,000 Equipment-net60,00040,000 Goodwill 10,0000 $440,000 Accounts payable$120,000 Wages and salaries20,000 Contributions due to pension plan10,000 Taxes payable60,000 Accrued interest payable (includes10,000 $8,000 from the mortgage payable and $2,000 from the note payable) Note payable120,000 Mortgage payable90,000 Capital stock80,000 Deficit(70,000) $440,000 The.
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19) Snodberry Catering has five operating segments, as summarized below: Buffet Alcohol Bakery Wait Service Bar Service Sales to outside entities 26,000 110,000 22,000 24,000 5,000 Intersegment sales -0- 20,000 4,000 -0- 56,000 Cost of goods sold 16,000 50,000 19,000 23,000 69,000 Operating Expenses 9,000 70,000 6,000 2,000 4,000 Interest Expense -0- 5,000 -0- 2,000 1,000 Income Tax Expense -0- 2,000 -0- -0- (3,000) Assets 2,000 22,000 2,000 1,000 1,000 Required: Determine which of the operating segments of Snodberry Catering are reportable segments for the period shown. 20) Tillman Fabrications has five operating segments, as summarized below: Wood Plastic Metal Paper Fabric Sales to outside.
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11) The balance sheet of the Flail, Gail, and Hale partnership on October 1, 2011 (the date of partnership dissolution) was as follows: Cash$3,000Liabilities$9,000 Other assets33,000Loan from Flail1,000 Loan to Gail4,000Flail,capital (20%)3,000 Gail, capital (30%)6,000       Hale, capital (50%) 21,000 Total assets$40,000Total liab./equity$40,000 In October, other assets with a book value of $15,000 were sold for $17,000 in cash. Required: Determine.
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18) Eve, Fig, Gus, and Hal are partners who share profits and losses 50%, 25%, 15%, and 10%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2011. The partnership trial balance at December 31, 2010 is as follows: DebitsCredits Cash$9,000 Accounts receivable26,000 Inventory78,000 Loan to Eve16,000 Furniture27,000 Equipment59,000 Goodwill10,000 Accounts payable$23,000 Note payable70,000 Loan from Hal7,000 Eve,.
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13) Faled Company has the following assets and liabilities, stated at fair value in liquidation. Assets pledged with secured creditors$100,000 Assets pledged with partially secured creditors75,000 Other assets160,000 Secured liabilities50,000 Partially secured liabilities110,000 Unsecured liabilities with priority80,000 Unsecured liabilities215,000 Required: Determine the amount of cash that will be available to pay unsecured creditors, and the percentage of unsecured liabilities.
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2) Dan and Ellie share partnership profits and losses at 70% and 30%, respectively. The partners agree to admit Fran into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Fran are: Dan (70%)$              800,000 Ellie (30%)400,000 Total$              1,200,000 Required: 1.Prepare the journal entry(s) for the admission.
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4) Ending Company is in bankruptcy and is being liquidated under the provisions of Chapter 7 of the bankruptcy code. The trustee has converted all assets into $80,000 cash (which includes the amounts shown below for assets sold) and has prepared the following list of approved claims: Property taxes payable$10,000 Accounts payable,.
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15) Osprin Corporation has three operating segments, as summarized below: Capsule Pill Liquid Total Sales to retailers 25,000 35,000 5,000 65,000 Intersegment sales 4,000 10,000 2,000 16,000 Operating Expenses 10,000 18,000 5,000 33,000 Interest Expense 2,000 3,000 1,000 6,000 Income Tax Expense 4,000 6,000 1,000 11,000 Assets 12,000 3,000 16,000 31,000 Required: 1. Using the revenue test, what is the minimum amount of revenue of a reportable segment? 2. Using the operating profit or loss test, what is the minimum amount of operating profit or loss of.
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11) Creditor committees are elected A) in all bankruptcy cases. B) in Chapter 7 cases. C) only in bankruptcy cases arising from involuntary petitions. D) in Chapter 11 cases. 12) In a Chapter 7 bankruptcy case, what is the first-to-last ranking order of priority for payment? (Use the following list of claim types.) I.stockholder claims II.unsecured priority.
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  Use the following information to answer the question(s) below. Adam, Bella, and Chris operate a partnership with a complex profit and loss sharing agreement. The average capital balance for Adam, Bella and Chris on December 31, 2011 is $120,000, $270,000, and $340,000, respectively. A 6% interest allocation is provided to each.
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7) A cash distribution plan for the Sammi, Tammy, and Udd partnership was as follows: Priority CreditorsSammiTammyUdd First $250,000100% Next $100,00070%30% Next $150,00011/154/15 Remainder20%35%45% Required: If $850,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Sammi, Tammy, and Udd? 8) The Vera, Wade, and Xena partnership was dissolved, and a cash.
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17) Oceana Corporation is being liquidated under Chapter 7 of the Bankruptcy Act. The trustee has determined that the unsecured claims will receive $.35 on the dollar. Loans-R-Us holds a $1,000,000 mortgage note receivable from Oceana that is secured by building and equipment with a $1,200,000 book value and a.
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3) For internal decision-making purposes, Calam Corporation's operating segments have been identified as follows: Operating ProfitIdentifiable Operating SegmentRevenuesor LossAssets Appliances$110,000$(15,000)$120,000 Clothing130,000(75,000)40,000 Lawn and Garden85,00015,00015,000 Auto Accessories100,00010,00020,000 Service Contracts65,000(5,000)10,000 Catalog Sales230,0005,00050,000 Home Furnishings280,00025,000100,000 Tools240,00030,00025,000 $1,240,000(10,000)$380,000 Required: 1.In applying the "operating profit or loss" test to identify reporting segments, what is the test value for Calam Corporation? 2.Using the "reported profit or loss" test, which of Calam's.
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9) Illiana Corporation has several accounting issues with respect to its interim financial statements for the first quarter of calendar 2011. Required: For each of the independent situations given below, state whether or not the method proposed by Illiana is acceptable. Justify each answer with appropriate reasoning. 1. Illiana will not perform.
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15) A summary balance sheet for the partnership of Quail, Rainne and Selma on December 31, 2011 is shown below. Partners Quail, Rainne and Selma allocate profit and loss in their respective ratios of 6:3:1. Assets Cash$ 320,000 Marketable securities640,000 Inventory270,000 Land130,000 Building-net210,000 Total assets$1,570,000 Equities Quail, capital$ 670,000 Rainne, capital580,000 Selma, capital320,000 Total equities$1,570,000 The partners agree to admit Trask for a.
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Multiple Choice Questions 1) Which statement is correct in describing the rank order of payments as specified by the Uniform Partnership Act? A) Payments to partners are ranked equally, regardless of underlying basis. B) Payment to partners with excess capital balances may be placed ahead of payments to creditors. C) Payments to creditors other.
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3) The partnership of Georgia, Holly, and Izzy was dissolved, and by July 1, 2011, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on July 1, 2011 (with partner residual profit and loss sharing percentages) was as follows: Cash$              10,000Georgia, capital (40%)$(20,000) Holly,.
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15) Aqua Corporation filed a petition under Chapter 7 of the bankruptcy act in January, 2011. On February 28, the following information was presented regarding Aqua's financial status. Book ValuesFair Values Cash$              50,000$50,000 A/R - net              100,00090,000 Inventories80,00060,000 Fixed Assets - net              200,000230,000 Priority Claims80,000 A/P              100,000 N/P              110,000 Mortgage Payable              200,000 The Note Payable is secured by Accounts Receivable,.
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11) If the average capital balances for Bertram and Ernest are $200,000 and $240,000, what will the total partnership profit allocations be for Bertram and Ernest in 2011? A) $100,000 and $140,000 B) $108,000 and $132,000 C) $120,000 and $120,000 D) $140,000 and $100,000 Use the following information to answer the question(s) below.   Alfred and Barne.
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15) Tye, Ula, Val, and Watt are partners who share profits and losses 40%, 30%, 20%, and 10%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2011. The partnership trial balance at December 31, 2010 is as follows: DebitsCredits Cash$3,000 Accounts receivable19,000 Inventory25,000 Loan to Val5,000 Furniture15,000 Equipment10,000 Goodwill12,000 Accounts payable$              13,600 Note payable30,000 Loan from.
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Multiple Choice Questions 1) When the bankruptcy court grants an order for relief under Chapter 7, A) creditors may not seek payment for their claims directly from the debtor corporation. B) the reorganization plan was accepted by creditors having at least one-half of the total number of claims and the claims represent at.
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Exercises 1) Anna and Bess share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Cal into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Cal are: Anna (60%)$              300,000 Bess (40%)300,000 Total$              600,000 Required: 1. Prepare the journal entry(s) for the.
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19) A cash distribution plan for the Jonah, Krispy, and Lemon partnership was as follows: Priority CreditorsJonahKrispyLemon First $100,000100% Next $180,00044%10%46% Next $270,0002/91/92/3 Remainder11%44%45% Required: If $700,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Jonah, Krispy, and Lemon? 20) The partners of the Minion, Nocti and Overly partnership share profits.
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7) For internal decision-making purposes, Geogh Corporation identifies its industry segments by geographical area. For 2011, the total revenues of each segment are provided below. There are no intersegment revenues. Total Revenues Canada$980,000 United States1,410,000 Mexico1,260,000 South America430,000 China710,000 Russia660,000 Australia370,000 European Union1,220,000 Other European1,650,000 Total revenues$8,690,000 Required: 1. Which operating segments will be considered reporting segments based on the revenue test? 2. What is.
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13) Maxtil Corporation estimates its income by calendar quarter as follows for 2011: 1st2nd3rd4th2011 QuarterQuarterQuarterQuarterTotal Est. Income$40,000$30,000$20,000$20,000$110,000 Income tax rates applicable to Maxtil: From: $0 to $50,00015% From: $50,001 to $75,00025% Over: $75,00035% Required: Determine Maxtil's estimated effective tax rate. 14) Nettle Corporation is preparing its first quarterly interim report. It is subject to a corporate income tax rate of.
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Exercises 1) Rank the following claims of an organization filing Chapter 7 bankruptcy from 1 to 4 based on the following classifications. Each classification may be used more than once. 1.Secured Claims 2.Unsecured Priority Claims 3.Unsecured Nonpriority Claims 4.Stockholders' Claims _____ A. Claims for wages that are less than $10,000 per individual, earned within 90 days.
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9) The balance sheet of the Ama, Bade, and Calli partnership on May 1, 2011 (before commencement of partnership liquidation) was as follows: Cash$              108,000Accounts payable$56,000 Inventory120,000Notes payable120,000 Loan to Ama20,000Ama, capital (30%)64,000 Loan to Calli32,000Bade, capital (50%)180,000 Plant assets-net220,000Calli, capital (20%) 80,000 Total assets$              500,000Total liab./equity$              500,000 Liquidation events in May were as follows: - The inventory was.
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5) The balance sheet of the Maude, Ned, and Oscar partnership on November 1, 2011 (before commencement of partnership liquidation) was as follows: Cash$              12,000Georgia, capital (40%)$36,000 Holly, capital (30%)6,000     Festus, capital (50%)31,000 Total assets$              90,000Total liab./equity$              90,000 Cash$70,000Accounts payable$42,000 Inventory60,000Notes payable68,000 Loan to Maude10,000Maude, capital(20%)30,000 Loan to Oscar18,000Ned, capital(20%)32,000 Plant assets-net80,000Oscar, capital(60%)66,000              Total assets$              238,000Total liab./equity$              238,000 Liquidation events in.
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11) Krull Corporation is preparing its interim financial statements for the third quarter of calendar 2011. The following trial balance information is available for third quarter: AccountDebitCredit Cash$98,000 Accounts Receivable285,000 Inventory750,000 Fixed assets600,000 Accounts Payable$300,000 Common Stock50,000 Retained Earnings80,000 Sales4,400,000 Administrative expense312,000 Cost of goods sold2,650,000 Loss on sale of securities sold on July 3075,000 Annual equipment overhaul costs paid on August 160,000 Totals$4,830,000$4,830,000 Additional information: At.
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  Use the following information to answer the question(s) below. Xavier, Young, and Zane operate a partnership with a complex profit and loss sharing agreement. The average capital balance for each partner on December 31, 2011 is $300,000 for Xavier, $250,000 for Young, and $325,000 for Zane. An 8% interest allocation is.
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17) Alf, Bill, Cam, and Dot are partners who share profits and losses 30%, 20%, 35%, and 15%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2011. The partnership trial balance at December 31, 2010 is as follows: DebitsCredits Cash$6,000 Accounts receivable20,000 Inventory50,000 Loan to Bill8,000 Furniture30,000 Equipment36,000 Goodwill20,000 Accounts payable$              23,500 Note payable60,000 Loan from.
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Multiple Choice Questions 1) Under the Uniform Partnership Act, loans made by a partner to the partnership are treated as A) liabilities to the partnership for which interest shall be paid from the date of the advance. B) advances to the partnership that are carried in the partners' capital accounts. C) Accounts Payable of.
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11) Using a safe payments schedule, how much cash should Melvin receive in the first distribution? A) $ 81,000 B) $165,000 C) $168,600 D) $202,500 12) Using a safe payment schedule, how much cash should Lola receive in the first distribution? A) $ 81,000 B) $ 98,000 C) $168,600 D) $202,500 13) Que, Rae, and Sye are in the process.
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20) The Leo, Mark and Natalie Partnership had the following capital balances and profit/loss sharing percentages: BalanceSharing % Leo$200,00050% Mark$160,00040% Natalie$140,00010% Newsome is going to buy into the partnership by paying $200,000 for a 20% ownership in the partnership. Required: 1.If Newsome pays the partnership directly, what are the four partner capital balances immediately following Newsome's admission.
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Exercises 1) The balance sheet of the Addy, Bess, and Clara partnership on January 1, 2011 (the date of partnership dissolution) was as follows: Cash$4,000Liabilities$8,000 Other assets26,000Loan from Addy1,000 Loan to Clara2,000Addy, capital (20%)2,000 Bess, capital (40%)9,000     Clara, capital (40%)12,000 Total assets$              32,000Total liab./equity$              32,000 In January, other assets with a book value of $16,000 were sold for.
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16) The following information was collected together for the Lawson Company relating to the preparation of their annual financial statements for 2011. For each item, indicate "yes" or "no" as to whether the item must be disclosed in the annual report. _____ 1. Names of major customers for all reportable segments _____.
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