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10) The Catt, Dogg, and Eustus partnership was dissolved by the partners in early 2011. On March 1, the partners prepared the following financial statement before commencement of final liquidation: Cash$80,000Accounts payable$125,000 Accounts Receivable160,000Notes payable70,000 Inventory130,000Loan from Dogg5,000 Loan to Catt10,000Catt, capital (20%)130,000 Loan to Eustus15,000Dogg, capital (20%)95,000 Plant assets-net 210,000Eustus, capital(60%)  180,000 Total assets$ 605,000Total liab./equity$ 605,000 Liquidation events in March.
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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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16) On January 1, 2011, Placid Corporation acquired a 40% interest in Superior Industries, a Canadian Corporation, for $811,900 when Superior's stockholders' equity consisted of 1,000,000 Canadian dollars (C$) capital stock and C$500,000 retained earnings. Superior's functional currency is the Canadian dollar and the books are kept in the same.
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14) A summary balance sheet for the partnership of Maddy, Nelson and Olsen on December 31, 2011 is shown below. Partners Maddy, Nelson and Olsen allocate profit and loss in their respective ratios of 9:6:10. Assets Cash$ 50,000 Marketable securities120,000 Inventory75,000 Land80,000 Building-net400,000 Total assets$725,000 Equities Maddy, capital$425,000 Nelson, capital225,000 Olsen, capital75,000 Total equities$725,000 The partners agree to admit Poosh for a one-tenth.
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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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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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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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12) Leotronix Corporation estimates its income by calendar quarter as follows for 2011: 1st2nd3rd4th2011 QuarterQuarterQuarterQuarterTotal Est. Income$30,000$40,000$40,000$50,000$160,000 Income tax rates applicable to Leotronix: From: $ 0 to $50,00015% From: $50,001 to $75,00025% Over: $75,00035% Required: Determine Leotronix's estimated effective tax rate. 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$110,000 Income tax rates applicable to Maxtil: From:.
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15) A summary balance sheet for the partnership of Quail, Rainne and Selma on December 31, 2011 is shown below. Partners Quail, Rainne and Selma allocate profit and loss in their respective ratios of 6:3:1. Assets Cash$ 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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8) The Vera, Wade, and Xena partnership was dissolved, and a cash distribution plan was developed, as follows: Priority CreditorsVeraWadeXena First $462,000100% Next $173,00060%40% Next $240,0007/125/12 Remainder20%30%50% Required: If $1,000,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Vera, Wade, and Xena? .
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8) The following data relate to Elle Corporation's industry segments. (Elle HQ represents the corporate headquarters). All other segments are geographical sales segments. AttributeEuropeRussiaChinaJapanElle HQ External sales$35,000$24,000$33,000$0$0 Intersegment   Sales2,0001,0004,00000 Expenses27,00018,00029,0005,00012,000 Assets assigned20,00022,00030,00014,00015,000 Income from   Equity investee5,000 Required: 1. Prepare a report which reconciles the reportable segment profits to total consolidated profits assuming that corporate expenses are not allocated.
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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$56,000 Inventory120,000Notes payable120,000 Loan to Ama20,000Ama, capital (30%)64,000 Loan to Calli32,000Bade, capital (50%)180,000 Plant assets-net  220,000Calli, capital (20%)  80,000 Total assets$ 500,000Total liab./equity$ 500,000 Liquidation events in May were as follows: - The inventory was sold for $12,000.
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14) Nettle Corporation is preparing its first quarterly interim report. It is subject to a corporate income tax rate of 20% on the first $50,000 of taxable income and 35% on taxable income above $50,000. Its estimated pretax accounting income for 2011, by quarter, is: 1st2nd3rd4th2011 QuarterQuarterQuarterQuarterTotal Est. Income$75,000$165,000$143,000$120,000$503,000 Nettle expects to earn and.
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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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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 12) What is the total amount for the allocation of interest,.
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4) For internal decision-making purposes, Elom Corporation's operating segments have been identified as follows: Operating ProfitIdentifiable Operating SegmentRevenuesor LossAssets Appliances$110,000$(15,000)$120,000 Lawn and Garden85,00015,00015,000 Auto Accessories100,00010,00020,000 Service Contracts65,000(5,000)10,000 Catalog Sales230,0005,00050,000 Corporate________________25,000 $590,000$10,000$240,000 Corporate assets are typically allocated back evenly to the segments for internal analysis purposes. Required: 1. In applying the "asset" test to identify reporting segments, what is the test value for Elom.
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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 of.
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2) The partnership of Dolla, Earl, and Festus was dissolved on January 1, 2011. The balance sheet at that date is shown below: Cash$12,000Liabilities$36,000 Other assets70,000Loan from Dolla1,000 Loan to Clara8,000Dolla, capital (20%)6,000 Earl, capital (30%)16,000      Festus, capital (50%) 31,000 Total assets$90,000Total liab./equity$90,000 In January, $34,000 of the accounts receivable was collected, and an additional $6,000 was determined.
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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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6) The profit and loss sharing agreement for the Tuttle, Upman, and Veer partnership provides for residual profits and losses to be allocated 2:3:6 to Tuttle, Upman, and Veer, respectively. In 2011, the partnership recorded $11,000 of net income that was properly allocated to the partners' capital accounts. On January.
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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 admission of.
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18) Pritt Company purchased all the outstanding stock of Standy Company (a manufacturing company in Argentina) when the book value of Standy's net assets equaled their fair value. Standy's summarized balance sheet is shown below on January 1, 2011, the date of acquisition, and on December 31, 2011, when the.
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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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10) Jeale Corporation is preparing its interim financial statements for the third quarter of calendar 2011. The following information was provided for the preparation of the statements: 1.Credit sales for the quarter$1,700,000 2.Cash sales for the quarter800,000 3.Inventories, July 1 (FIFO cost method)250,000 4.Cash purchases of inventory during the quarter400,000 5.Inventory purchases made on account.
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11) Which one of the following operating segment disclosures is not required by GAAP? A) Total Assets B) Equity C) Intersegment sales D) Extraordinary items 12) Which one of the following operating segment information items is not directly named by GAAP to be reconciled to consolidated totals? A) Assets B) Liabilities C) Revenues D) Profit or loss 13) What is.
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15) Par Industries, a U.S. Corporation, purchased Slice Company of New Zealand for $1,411,800 on January 1, 2011. Slice's functional currency is the New Zealand dollar (NZ$). Slice's books are kept in NZ$. The book values of Slice's assets and liabilities were equal to fair values, with the exception of.
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9) Required: 1.Prepare a schedule to allocate income to the partners assuming that partnership net income for 2011 is $330,000. 2.Prepare a journal entry to distribute the partnership's income to the partners (assume that an Income Summary account is used by the partnership). 10) Required: 1.Prepare a schedule to allocate income or loss to.
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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? .
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2) For internal decision-making purposes, Dashwood Corporation's operating segments have been identified as follows: RevenuesOperating (includesProfitIdentifiable Operating Segmentintersegmentor LossAssets revenues) Appliances$1,100,000$(150,000)$1,200,000 Clothing1,300,000(750,000)400,000 Lawn and Garden850,000150,000150,000 Auto Accessories1,000,000100,000200,000 Service Contracts650,000(50,000)100,000 Catalog Sales2,300,00050,000500,000 Home Furnishings2,800,000250,0001,000,000 Tools2,400,000300,000250,000 $12,400,000$(100,000)$3,800,000 Revenues of the segments are external, with the exception of tools, which sold $400,000 to other segments, and Appliances, which sold $200,000 to other segments. Required: 1. In applying the "revenue".
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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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Exercises 1) The accountant for Baxter Corporation has assigned most of the company's assets to its three segments as follows: Electronics$1,760,000 Hardware3,420,000 Plumbing490,000 Total$5,670,000 The unassigned assets consist of $430,000 of unallocated goodwill and $270,000 of assets attached to the corporate headquarters. For internal decision-making purposes, goodwill is not assigned to the segments and the assets.
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Multiple Choice Questions 1) Similar operating segments may be combined if the segments have similar economic characteristics. Which one of the following is a similar economic characteristic under GAAP? A) The segments' management teams B) The tax reporting law sections C) The distribution method for products or services D) The expected rates of return and.
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14) On January 1, 2011, Psalm Corporation purchased all the stock of Solomon Corporation for $481,400 when Solomon had capital stock of 180,000 pounds (£) and retained earnings of 90,000£. The book value of Solomon's assets and liabilities represented the fair value, except for equipment with a 5-year life that.
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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 $10,000 in.
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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 of goods sold 430,000 270,000 290,000 65,000 420,000 Operating Expenses 120,000 89,000 95,000 74,000 238,000 Interest Expense -0- 61,000 -0- -0- 24,000 Income Tax Expense 80,000 (1,000) 120,000 24,000 (28,000) Assets 22,000 24,000 29,000 16,000 100,000 Required: Determine which of the operating segments of Rollins Publishing are reportable segments for the period shown. 19) Snodberry Catering has five operating segments, as summarized below: Buffet Alcohol Bakery Wait Service Bar Service Sales to outside.
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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 November were as follows: - All.
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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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7) Required: 1.Prepare a schedule to allocate income to the partners assuming that partnership net income for 2011 is $250,000. 2.Prepare a journal entry to distribute the partnership's income to the partners (assume that an Income Summary account is used by the partnership). 8) Required: 1.Prepare a schedule to allocate income or loss to.
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6) For internal decision-making purposes, Falcon 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$22,000,000 United States76,000,000 Mexico10,000,000 South America9,000,000 China2,000,000 Russia1,500,000 Australia3,000,000 European Union12,000,000 Other European14,000,000 Total revenues$149,500,000 Required: 1. Which operating segments will be considered reporting segments based on the revenue test? 2. What is.
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6) The balance sheet of the Park, Quid, and Reggie partnership on November 1, 2011 (before commencement of partnership liquidation) was as follows: Cash$60,000Accounts payable$110,000 Accounts Receivable130,000Loan from Quid40,000 Loan to Park16,000Park, capital (20%)60,000 Loan to Reggie22,000Quid, capital (40%)52,000 Plant assets-net 120,000Reggie, capital (40%)   86,000 Total assets$ 348,000Total liab./equity$ 348,000 Liquidation events in November were as follows: - All receivables were settled.
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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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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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