Nama :

NIM :
Kelas :
Mata Kulia:

PROBLEM 1
a. Prepare the entries to record the transactions
Date Decription Ref Debet
1. Cash $ 51,000.00
Allowance for doubtful account $ 1,000.00
accumulated depresciation-equipment $ 5,500.00
loss of realization $ 23,000.00
Account Receivable
Inventory
Equipment
(to record realization of noncash asset)

2. A. Jamison, Capital $ 11,500.00

S. Moyer, Capital $ 6,900.00
P. Roper, Capital $ 4,600.00
loss of realization
(to allocate loss on realization to partners)

3. Notes payable $ 13,500.00

Account Payable $ 27,000.00
Salaries and Wages Payable $ 4,000.00
Cash
(To record payment of partnership liabilities)

4. Cash $ 1,600.00
P. Roper, Capital
(to record payment of capital deficiency by roper)

5. A. Jamison, Capital $ 21,500.00

S. Moyer, Capital $ 14,100.00
Cash
(to record distribution of cash to the partners)
Balance $ 185,200.00

b. Post to the cash and capital account

Cash
Balance $ 27,500.00 3 $ 44,500.00
1 $ 51,000.00 5 $ 35,600.00
5$ 1,600.00
$ 80,100.00 $ 80,100.00
 $ -

A. Jamison, Capital
2 $ 11,500.00 Balance $ 33,000.00
5 $ 21,500.00

$ 33,000.00 $ 33,000.00
$ -

S. Moyer, Capital
2$ 6,900.00 Balance $ 21,000.00
5 $ 14,100.00

$ 21,000.00 $ 21,000.00
$ -

P. Roper, Capital
2$ 4,600.00 Balance $ 3,000.00
4 $ 1,600.00

$ 4,600.00 $ 4,600.00
$ -

c. 1. prepare the entry to allocate Roper's debit balance to jamison and moyer
Date Decription Ref Debet
A. Jamison, Capital $ 1,000.00
S. Moyer, Capital $ 600.00
P. Roper, Capital

2. prepare the entry to record the final distribution of cash

Date Decription Ref Debet
A. Jamison, Capital $ 20,500.00
S. Moyer, Capital $ 13,500.00
Cash

Problem 2
a. Prepare journal entries for the Transaction and adjusment listed above
Date Decription Ref Debet
1. Cash $ 22,000.00
Preferred Stock
Paid in Capital in excess of par - preferred stock

2. Cash $ 23,000.00
 Common Stock
Paid in capital in excess of par - common stock

3. Treasury Stock $ 14,700.00

Cash

4. Cash Dividend $ 6,750.00

Dividend Payable

5. Bad debt Expense $ 5,100.00

Allowance for doubtful accounts

6. Depreciation Expense $ 3,000.00

Accumulated Depreciation - Building

7. Depreciation Expense $ 3,600.00

Accumulated Depreciation - Equipment

8. Unearned rent revenue $ 6,000.00

Rent Revenue

9. Interest Expense $ 5,000.00

Interest Payable

b. Prepare an updated December 31, 2017, trial balance, reflecting the journal entries in (a)
Quigley Corporation's
Trial Balance
Per December 31, 2017
Name Account Debet Kredit
Cash $ 55,800.00
Account Receivable $ 51,000.00
Inventory $ 22,700.00
Land $ 65,000.00
Building $ 95,000.00
Equipment $ 40,000.00
Allowance for Doubtful Account $ 5,550.00
Accumulated Depreciation - Building $ 33,000.00
Accumulated Depreciation - Equipment $ 18,000.00
Account Payable $ 19,300.00
Interest Payable $ 5,000.00
Dividen Payable $ 6,750.00
Unearned Rent Revenue $ 2,000.00
Bond Payable (10%) $ 50,000.00
Common Stock ($10 par) $ 40,000.00
Paid in capital in excess of par - common stock $ 19,000.00
 Preferred Stock ($10 par) $ 20,000.00
Paid in capital in excess of par - Preferred stock $ 2,000.00
Retained Earning $ 75,050.00
Treasury Stock $ 14,700.00
Cash Dividend $ 6,750.00
Sales Revenue $ 570,000.00
Rent Revenue $ 6,000.00
Bad Debt Expense $ 5,100.00
Interest Expense $ 5,000.00
Cost of good sold $ 400,000.00
Depreciation expense $ 6,600.00
Othe operating expense $ 39,000.00
Salaries and Wages Expense $ 65,000.00
TOTAL $ 871,650.00 $ 871,650.00
$ -

c. Prepare a multiple-step income statement for the year ending December 31, 2017.
Quigley Corporation's
income statement
for the year ending December 31, 2017.
Sales Revenue $ 570,000.00
Cost of good sold $ 400,000.00
$ 170,000.00
Rent Revenue $ 6,000.00
Gross Profit $ 176,000.00
Operating Expense :
Bad Debt Expense $ 5,100.00
Interest Expense $ 5,000.00
Depreciation expense $ 6,600.00
Othe operating expense $ 39,000.00
Salaries and Wages Expense $ 65,000.00
Total Operating Expense $ 120,700.00
Net Income $ 55,300.00

d. Prepare a retained earnings statement for the year ending December 31, 2017.
Quigley Corporation's
retained earnings statement
for the year ending December 31, 2017.
Beginning, Retained earning $ 75,050.00
Change:
Net Income $ 55,300.00
Cash Dividend $ -6,750.00
$ 48,550.00
Ending, Reteined earning $ 123,600.00
 e. Prepare a classified balance sheet as of December 31, 2017.
Quigley Corporation's
balance sheet
For of December 31, 2017.
ASSET LIABILITIES & EQUITAS
Current Asset Liabilities
Cash $ 55,800.00 Account Payable
Account Receivable $ 51,000.00 Interest Payable
Allowance for Doubtful Account $ -5,550.00 Dividen Payable
Inventory $ 22,700.00 Unearned Rent R
Total Current Asset $ 123,950.00 Bond Payable (10
Total Liabilities
Fixed Asset Equitas
Land $ 65,000.00 Common Stock ($
Building $ 95,000.00 Paid in capital i
Accumulated Depreciation - Building $ -33,000.00 Preferred Stock (
Equipment $ 40,000.00 Paid in capital in
Accumulated Depreciation - Equipment $ -18,000.00 Retained Earning
Total Fixed Asset $ 149,000.00 Treasury Stock
Total Equitas
TOTAL ASSET $ 272,950.00 TOTAL LIABILITI

PROBLEM 3
PART 1
Debby, Jamie, and Ella should choose a corporation over a partnership form of business. The advantages of cho
1) Liability in partnership is not limited. In the case of bankruptcy, the partner is responsible for paying the debt
their personal. However, in the case of a company, the shareholder's liability is limited to the nominal share pri
bound to pay the debts of the business in the event of liquidation.

2) In terms of business expansion, the partnership company only relies on partners to generate finances. But in
can be generated from outside financial sources such as loans and debt.

PART II
Common Stock Debt
Income before interest and tax $ 300,000.00 $ 300,000.00
Less; Interest (1,400,000 x 9/100) $ - $ -126,000.00
Income before tax $ 300,000.00 $ 174,000.00
Less: tax 32% on income before tax $ -96,000.00 $ -55,680.00
Income after tax $ 204,000.00 $ 118,320.00
Number of shares 200,000 60,000
Earnings per share $ 1.02 $ 1.97

Number of existing shares (20,000 x 3) 60,000

 New Share 140,000
Total 200,000

In the case of debt only existing ones should be taken.

In the case of debt there is a tax benefit on interest and earnings per share are also higher, so debt should be se

PART III
(1) Record all of the transactions related to the common stock of Life Path Fitness during the years 2019 and 20
Date Decription Ref Debet
21-Jul Stock Dividend $ 900,000.00
Cash

27-Jul Stock Dividend $ 270,000.00

Common Stock Dividends Distributable
Paid-in Capital in Excess of Par Common Stock

31-Jul No entry Journal $ -

15-Aug Common Stock Dividends Distributable $ 90,000.00

Common Stock

4-Dec Cash Dividends $ 4,500.00

Dividends Payable

14-Dec No entry Journal $ -

24-Dec Dividends Payable $ 4,500.00

Cash
Total $ 1,269,000.00

(2) Shares issued and outstanding after stock dividend is issued

The shares issued and outstanding are 90,000

PART IV
Date Decription Ref Debet
1-Jan Cash $ 600,000.00
Bond Payable

31-Dec Interest Expense $ 36,000.00

Interest Payable

1-Jan Interest Payable $ 36,000.00

Cash

31-Dec Interest Expense $ 36,000.00

 Interest Payable
Balance $ 708,000.00

PART V
(1) Give the entries that would have been made on Hansen's books if the equity method of accounting for inves
Date Decription Ref Debet
2017 Stock Investment $ 12,000.00
Revenue from Stock Investments

2018 Stock Investment $ 28,000.00

Revenue from Stock Investments

Cash $ 33,000.00
Stock Investment

2019 Stock Investment $ 42,000.00

Revenue from Stock Investments

Cash $ 12,000.00
Stock Investment

(2) Compute the balance in the Stock Investment account (as it relates to LifePath Fitness) at the end of 2021.
Stock Invesment
Debet Credit
Dates
Wednesday, July 19, 2017 $ 900,000.00
Sunday, December 31, 2017 $ 12,000.00
Monday, December 31, 2018 $ 28,000.00
2018 $ 3,300.00
Tuesday, December 31, 2019 $ 42,000.00
2019 $ 12,000.00
Credit

$ 25,000.00
$ 34,500.00
$ 21,000.00

$ 23,000.00

$ 44,500.00

$ 1,600.00

$ 35,600.00

$ 185,200.00
Credit

$ 1,600.00

Credit

$ 34,000.00

Credit

$ 20,000.00
$ 2,000.00
 $ 10,000.00
$ 13,000.00

$ 14,700.00

$ 6,750.00

$ 5,100.00

$ 3,000.00

$ 3,600.00

$ 6,000.00

$ 5,000.00

rnal entries in (a)

LITIES & EQUITAS

$ 19,300.00
$ 5,000.00
$ 6,750.00
$ 2,000.00
$ 50,000.00
$ 83,050.00

$ 40,000.00
$ 19,000.00
$ 20,000.00
$ 2,000.00
$ 123,600.00
$ -14,700.00
$ 189,900.00
$ 272,950.00

orm of business. The advantages of choosing this form are as follows:

rtner is responsible for paying the debt from the property
bility is limited to the nominal share price. Private property no

n partners to generate finances. But in terms of corporate money

are are also higher, so debt should be selected.

th Fitness during the years 2019 and 2020.

Credit

$ 900,000.00

$ 90,000.00
$ 180,000.00

$ -

$ 90,000.00

$ 4,500.00

$ -

$ 4,500.00
$ 1,269,000.00

Credit

$ 600,000.00

$ 36,000.00

$ 36,000.00
 $ 36,000.00
$ 708,000.00

e equity method of accounting for investments had been used from the initial investment through 2021. Assume the following data for Life
Credit

$ 12,000.00

$ 28,000.00

$ 33,000.00

$ 42,000.00

$ 12,000.00

o LifePath Fitness) at the end of 2021.

Balance

$ 900,000.00
$ 912,000.00
$ 940,000.00
$ 936,700.00
$ 978,700.00
$ 966,700.00
Assume the following data for LifePath