P12-1A

A.
Patrick Company Samuelson Company
Account Titles Debit Credit Account Titles Debit Credit
Cash $ 14,000 Cash $ 12,000
Account Receivable $ 17,500 Account Receivable $ 26,000
allowance for doubtful account $ 4,500 allowance for doubtful account $ 4,000
Merchendise Inventory $ 28,000 Merchendise Inventory $ 20,000
Equipment $ 23,000 Equipment $ 16,000
Notes payable $ 18,000 Notes payable $ 15,000
Account payable $ 22,000 Account payable $ 31,000
Patrick, Capital $ 38,000 Samuelson,Capital $ 24,000
$ 82,500 $ 82,500 $ 74,000 $ 74,000

B.
Utech Company Flott Company
Account Titles Debit Credit Account Titles Debit Credit
Cash $ 5,000 Cash $ 19,000
Utech Company $ 5,000 Flott Company $ 19,000

Commander Company
Classified Balance Sheet
January,1 2017
Assets Amount Amount
Cash $ 37,500
Account Recevable $ 48,000
Less: Allowance for doubtful account $ 6,500 $ 41,500
Inventory $ 63,000
Equipment $ 53,000
Total Assets $ 195,000

Liabilities and Owner's Equity

Liabilities
Note Payable $ 20,000
Account Payable $ 70,000
Total Liabilities $ 90,000
Owner's Equity

Utech Capital $ 48,500

Add: Investment $ 3,500
Flott Capital $ 37,000
Add: Investment $ 16,000
Total Owner's Equity $ 105,000
Total Liabilities and Owner's Equity $ 195,000

P12-2A
A B
Account Titles Debit Credit DIVISION OF NET INCOME
1. Income Summary $ 30,000 FOR THE YEAR ENDED 2010 DECEMBER, 31
Cuplin ( 30.000 x 6/10) $ 18,000 Net Income: $19.000
Newell ( 30.000 x 3/10 ) $ 9,000 Riles Kinder Crifui Total
Uhrich ( 30.000 x 1/10 ) $ 3,000 Salary Allowance $ 12,000 $ - $ - $ 12,000
2. Income Summary $ 37,000 Interest allowance on partner's capital
Cuplin (15.000 + 4.000) $ 19,000 Cuplin (48.000 x 10/100) $ 4,800
Newell (10.000 + 4.000) $ 14,000 Newell (30.000 x 10/100) $ 3,000
Uhrich (4.000) $ 4,000 Uhrich (25.000 x 10/100) $ 2,500
3. Income Summary $ 19,000 Total Interest Allowance $ 10,300
Cuplin ( 12.000 ( 48.000 x 10/100) - 1.100) $ 15,700 Total Salaries and Interest $ 16,800 $ 3,000 $ 2,500 $ 22,300
Newell (30.000 x 10/100) - 1.100) $ 1,900 Remaining Income (-3.300)
Uhrich (25.000 x 10/100) - 1.100) $ 1,400 Cuplin $ (1,100)
Newell $ (1,100)
Uhrich $ (1,100)
Total Remaining Income $ (3,300)
Total Division of Net Income $ 15,700 $ 1,900 $ 1,400 $ 19,000

C
CNU COMPANY
PARTNER'S CAPITAL STATEMENT
FOR THE YEAR ENDED 2010 DECEMBER,31
Cuplin Newell Uhrich Total
Beginning Capital Balance $ 48,000 $ 30,000 $ 25,000 $ 103,000
Add: Net Income $ 15,700 $ 1,900 $ 1,400 $ 19,000
$ 63,700 $ 31,900 $ 26,400 $ 122,000
Less: Drawing $ (23,000) $ (14,000) $ (10,000) $ (47,000)
End of The Year Capital Balance $ 40,700 $ 17,900 $ 16,400 $ 75,000