Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $14,000 $12,000 Accounts receivable 17,500 26,000 Allowance for doubtful accounts $3,000 $4,400 Inventory 26,500 18,400 Equipment 45,000 29,000 Accumulated depreciation-equipment 24,000 11,000 Notes payable 18,000 15,000 Accounts payable 22,000 31,000 Sorensen, capital 36,000 24,000 Lucas, capital $103,000 $103,000 $85,400 $85,400 Sorensen and Lucas decide to form a partnership, Solu Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company $17,500 $26,000 Accounts receivable 4,500 4,000 Allowance for doubtful accounts 28,000 20,000 Inventory 25,000 15,000 Equipment All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.

Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $14,000 $12,000 Accounts receivable 17,500 26,000 Allowance for doubtful accounts $3,000 $4,400 Inventory 26,500 18,400 Equipment 45,000 29,000 Accumulated depreciation-equipment 24,000 11,000 Notes payable 18,000 15,000 Accounts payable 22,000 31,000 Sorensen, capital 36,000 24,000 Lucas, capital $103,000 $103,000 $85,400 $85,400 Sorensen and Lucas decide to form a partnership, Solu Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company $17,500 $26,000 Accounts receivable 4,500 4,000 Allowance for doubtful accounts 28,000 20,000 Inventory 25,000 15,000 Equipment All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.

Name: Sorensen CompanyLucas CompanyDr.Cr.Dr.Cr.Cash$14,000$12,000Accounts r
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Sorensen CompanyLucas CompanyDr.Cr.Dr.Cr.Cash$14,000$12,000Accounts receivable17,50026,000Allowance for doubtful accounts$3,000$4,400Inventory26,50018,400Equipment45,00029,000Accumulated depreciation-equipment24,00011,000Notes payable18,00015,00022,

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.6: Buying Intangible Assets And Calculating Amortization Expense

Problem 1OYO

See similar textbooks

Similar questions

X Company reports these account balances on December 31, 2021 Accounts Payable Accounts Receivable Accumulated depreciation $450,000 150.000 180,000 600,000 80.000 300,000 Cash Drawings Operating Expenses Goodwill 90,000 000 080 Service Revenne Owner's capital Unearmed Service Reventie S00,000 720.000 50,000
At 31 October 20X6 Roger's trial balance included the following balances: Machinery at cost Accumulated depreciation Inventory 12,890 8,950 5,754 11,745 7,830 1,675 150 Trade receivables Trade payables Bank overdraft Cash at bank What is the value of Roger's current assets at 31 October 20X6?
ation in ear: During uilding Pl,160,000 800,000 000,000 been 1,220,000 1,200,000 1,180,000 d. 1,160,000 b. units. C. goods to be arged Grey Company acquired a machine with a cash price of abor. P2,000,000. 400,000 1,200,000 800,000 Down payment n 000 shares of Grey Company at fair value Prior to use, installation cost of P50,000 was incurred. The achine has a residual value of P100,000. What is the initial measurement of the new machine? ring 8. 2,000,000 b. 2,400,000 C. 2,050,000 d. 2,450,000 ry Problem 23-14 (IAA) ost. Çorner Company puchased a van with a list price of P3,000,000. The dealer granted a 15% reduction in list price nd and an additional 10% cash discount on the net price if payment is made in 30 days. at Irrecoverable taxes amounted to P40,000 and the entity paid an extra P30,000 to have a special horn installed. ad What amount should be recorded as initial cost of the van? 2 2,550,000 0. 2,335,500 at 2,365,000 d. 2,325,000 payment plan but a have P120,000 was and…
On June 31, 2019, Majestic Co. acquired all of the common stock of Golden Compuny, which became a division of Majestic Co. Golden reported the following statenment of financial position at the time of the acquisition: Golden Company Statement of Financial Position Assets Equity and Liabilities Share capital-ordinary Retained eamings Accounts payable 3950.000 Plant assets (net) Inventory Receivables Cash Total assets $41,050,000 375,000 900,000 650.000 475.000 250.000 $2.325,000 Total equity and liabilities $2.125.000 An appraisal indicated that the fair value of the inventory was $355,000 and the fair value of the plant assets was $1,350,000. The agreed purchave price was $2,500,000, and this amount was paid in cash to the previous owners of Golden Company
Cajegas Trucking ServicesTrial BalanceJune 30, 2021Debit CreditCash in Bank P 1,020,000Petty Cash Fund 1,000Accounts Receivable 120,000Est. Uncollectible Account P 1,200Unused Supplies 15,000Prepaid Insurance 8,500Prepaid Rent 30,000Delivery Truck 1,500,000Acc. Depreciation – Delivery Truck 250,000Accounts Payable 130,000P. Cagejas, Capital 1,818,500P. Cagejas, Drawings 50,000Trucking Income 935,000Taxes and Licences 10,000Repairs and Maintenance 27,000Retainer Fees 25,000Salaries and Wages 320,000Utilities Expense 8,200Total P 3,134,700 P 3,134,700Additional Information1. Provision for Uncollectible Account should be at 2% of the outstanding receivable account.2. Supplies actually on hand, P5,000.3. Of the Prepaid Insurance, P6,200 has actually expired.4. P18,000 of the Prepaid Rental has expired.5. Depreciation Expense for the period is P105,000.Required:a. An 8-column worksheetb. Balance Sheetc. Income Statementd. Statement of Changes in Owner’s Equity
BALANCE SHEETS 12/31/19 12/31/18 Cash $408,000 $192,000 Accounts receivable 360,000 216,000 Inventory 384,000 480,000 Property, plant and equipment $608,000 $960,000 Less accumulated depreciation (320,000) 288,000 (304,000) 656,000 $1,440,000 $1,544,000 Accounts payable $ 176,000 $ 96,000 Income taxes payable…
ShafNita Sdn. Bhd. Statement of Financial Position as at 31 December2019 2020RM RM RM RM Non Current AssetsBuilding 100,000 100,000Fixtures less accumulated depreciation 3,600 4,000Van less accumulated depreciation 7,840 14,800111,440 118,800 Current AssetInventory 11,200 24,800Trade account receivable 12,800 16,400Bank 1,800 -Cash 440 400 26,240 41,600Total assets 137,680 160,400Finance by:Capital account:Balance at 1 January 74,080 105,080Add: Net profit for the year 70,400 42,320Cash introduced - 20,000144,480 167,400Less: Drawings (39,400) (43,200)105,080 124,200 Non Current LiabilitiesLoan (repayable in 10 years time) 20,000 30,000Current LiablitiesAccount Payable 12,600 6,012Bank overdraft - 188Retained earnings 32,600 36,200Total liabilities and equity 137,680 160,400 Additional information at 31 December 2020:  Fixtures bought in 2020 cost RM800. Van bought in 2020 cost RM11,000. Required: Prepare statement of cash flow for ShafNita Sdn. Bhd. for the year ended 31 December…
ADBRI Limited (ABC, formerly Adelaide Brighton Limited) is an integrated construction material and lime producing group of companies focused on the construction, engineering, infrastructure and resource sectors in Australia. ABC has three main operating divisions being: Cement, Lime, Concrete and Aggregates and Concrete Masonry Products. Acrow (ACF, formerly NMG Corporation Limited) operates in the Australian construction services industry, hiring formwork, falsework and scaffolding equipment and undertaking sales of formwork and scaffolding related consumables. The Formwork operation involves the supply of the temporary mould that supports concrete structures in their construction. The Scaffolding operation supplies scaffolding equipment and access solutions to builders and building contractors when working at heights. Below are extracts of ACF and ABC Limited's income statements and balance sheets for 2020. Item ACF ABC Limited Income Statement Income Statement Operating Revenue…
OUR COMPANY Statement of Financial Position As of December 31 2ΟΥ2 20Υ1 Cash and Cash Equivalents P 470,310 P 519,860 Accounts Receivable, net 660,110 565,170 Inventory 653,060 555,480 228,810 Prepaid Expenses 173,740 Total Current Assets 1,957,220 1,869,320 Property, Plant and Equipment, net Intangible Assets 5,910,530 745,200 5,501,660 721,910 Total Assets P8,612,950 P8,092,890 Current Liabilities P1,273,050 P1,123,700 Long-Term Liabilities 577,580 541,540 Total Liabilities 1,850,630 1,665,240 OUR, Capital 6,762,320 6,427,650 Total Liabilities and Owner's Equity P8,612,950 P8,092,890 OUR COMPANY Statement of Comprehensive Income For the Year Ended 20Υ2 20Υ1 Sales Revenue P5,385,860 P4,921,850 1,374,790 Cost of Goods Sold 1,254,860 Gross Profit 4,011,070 3,666,990 3,127,150 3,406,460 604,610 Selling and Administrative Expenses Operating Income Interest Expense 539,840 23,040 11,820 Net Income P 592,790 P 516,800 Required: 1. Compute for the 20Y2 profitability ratios. 2. Compute for…
Comprehensive Problem The following were taken from the books of Amihan Company: Long-term Payable Notes Payable Property. Plant and Equipment Accounts Receivable Accounts Payable Accumulated Depreciation Cash Owner's Capital Unearned Income Notes Receivable Prepaid Expenses Accrued Expenses Inventory Intangible Assets P 500,000 120.000 750,000 56.000 65,000 100,000 77,000 c. Prepaid Expenses is current. d. Date of SFP, December 31, 2020 ? 15.345 244.000 56.700 37,890 157,840 124,500 OUTPUT 1 Prepare a classified SFP given the following additional information: (ACCOUNT FORM) SFP a. Notes Payable is due 6 months from now. b. Notes Receivable is collectible 9 months from now.
$ 120,400 71,400 1,932,000 $ 56,000 39,200 217,000 271,600 238,000 140,000 Interest revenue Cash Accumulated depreciation-equipment Accumulated depreciation–building Notes receivable Sales Accounts receivable Prepaid insurance Sales returns and allowances Allowance for doubtful 210,000 28,000 210,000 Selling expenses Accounts payable Bonds payable Administrative and general 9,800 63,000 140,000 280,000 196,000 869,400 135,800 44,800 84,000 140,000 210,000 700,000 29,400 accounts Sales discounts Land expenses Accrued liabilities Interest expense Notes payable Loss from earthquake damage Common stock Retained earnings Equipment Building Cost of goods sold Assume the total effective tax rate on all items is 34%. Instructions Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.
Account$ 51,000Accounts payable$33, 700 Land Notes payable49,000Accounts receivable 71, 2000perating expenses 102,000Building86, 500Prepaid insurance3.100Cash3, 200Service revenue172.000Equipment35, 700Unearned revenue 3,000J. Koizumi, capitalJ. Koizumi, drawings99, 0004, 000(c) Determine the amount overKoizumi Kollections has the following alphabetical list of accounts and balances at July 31. 2017: