Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

The partnership of Avery and Kirk was formed on July 1, when George Avery and Dinah Kirk agreed to invest equal amounts and to share profits and losses equally. The investment by Avery consists of $30,000 cash and an inventory of merchandise valued at $56,000.

Kirk also is to contribute a total of $86,000. However, it is agreed that her contributions will consist of the transfer of both assets of her business and its liabilities (listed below). A list of the agreed values of the various items as well as their carrying values on Kirk's records follows. Kirk also contributes enough cash to bring her capital account to $86,000.

Investment by Kirk
Balances on Agreed
Kirk's Records Value
Accounts Receivable $81,680 $79,600
Inventory 11,400 12,800
Office Equipment (net) 14,300 9,000
Accounts Payable 24,800 24,800

Instructions:

a. Draft entries (in general journal form) to record the investments of Avery and Kirk in the new partnership.

b. Prepare the beginning balance sheet of the partnership (in report form) at the close of business July 1, reflecting the above transfers to the firm.

c. On the following June 30 after one year of operation, the Income Summary account showed a credit balance of $74,000, and the Drawing account for each partner showed a debit balance of $31,000. Prepare journal entries to close the Income Summary account and the Drawing accounts at June 30.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M998507

Have any Question? 


Related Questions in Business Management

Your boss has approved your project teams recommendations

Your boss has approved your project team's recommendations to increase productivity (select a specific organization that is applicable to you, if desired). Many of your recommendations will result in significant change t ...

Literature reviewwrite a literature review of 5-7 pages in

Literature Review Write a literature review of 5-7 pages in length, excluding cover page and reference list, incorporating one or more leadership topics as presented in this course AND some aspect of the research and/or ...

Although there are many different examples of economies in

Although there are many different examples of economies in the world, all of them demonstrate one or more of the four basic types of market structure. For this assignment, in your own words, Identify the four basic marke ...

Resolving ethical issues and dilemmasthe mission and vision

Resolving Ethical Issues and Dilemmas The mission and vision statements drive the outcomes of an NPO or NGO and generally involve social change or public service. For this reason, the daily operations of NPOs and NGOs ai ...

1 do multinational corporations that operate in several

1. Do multinational corporations (that operate in several countries) distort the "trade surplus/trade deficit" figures for the U.S. given that a portion of trade is intra-firm in nature?  Explain why or why not. 2. If "f ...

Companies try to forge a marketing channel a set of

Companies try to forge a marketing channel, a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. Information, pro ...

Writing for managers discussionafter reviewing ben

Writing for Managers Discussion After reviewing Ben Franklin's 13 Virtues: chapter IX http://www.gutenberg.org/files/20203/20203-h/20203-h.htm Write a 300-400 word "mini-essay" in response to the following prompt Discuss ...

Addressing challenges that arise in strategic-planning

Addressing Challenges that Arise in Strategic-Planning Meetings No matter what your role is in an organization, you will most likely attend a significant number of meetings. For strategic planning in particular, meetings ...

1 define what we mean by population health provide an

1. Define what we mean by population health. Provide an example of the healthcare organization or healthcare system which is involved in population health. Were they successful?/Be sure to define what you mean by success ...

Suppose there are two firms in a market who each choose a

Suppose there are two firms in a market who each choose a quantity of output to produce. Firm 1's quantity is q 1 , and firm 2's quantity is q 2 .  Firm 1 chooses their quantity, q 1 , first.  Firm 2 observes q1, and the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro