Horngren’s Accounting, Volume 2, 11th Canadian Edition by Tracie Miller-Nobles Solution manual

Balances62,00000    26,400    19,800  15,800
Disbursement of cash to partners(62,000)                              (26,400)   (19,800)(15,800)
Balances$         0$          0$           0$           0$           0$           0
 
 
*   Allocation of gain to partners:
    Gain:           $78,500 – $62,500            =      $16,000
    Garcia:        $16,000 ´ 0.40                   =     $  6,400
    Woods:       $16,000 ´ 0.30                   =      $  4,800
    Mickelson:  $16,000 ´ 0.30                   =      $  4,800
 
(15–20 min.) E12-17
  Noncash Shelly LinusPeter LebrunCathy Beale
 CashAssetsLiabilitiesCapitalCapitalCapital
       
Balance before sale of assets$   12,000$252,000$154,000$24,000$74,000$12,000
Sale of assets280,000(252,000)________    5,600    8,400   14,000
Balances$ 292,000$           0$154,000$29,600$82,400$26,000
 
 
$280,000 - $252,000 = $28,000 gain to allocate.
 
Shelly: $28,000 x 0.20 = $5,600
 
Peter:  $28,000 x 0.30  = $8,400
 
Cathy: $28,000 x 0.50 = $14,000
 
Using Excel
(15–20 min.) E12-18
 
The student templates for Using Excel are available online in MyLab in the Multimedia Library. The solution to Using Excel is available online in MyLab in the Instructor Resource Centre.
 
 
Serial Exercise
(20–25 min.) E12-19
Req. 1
 
Date
2021 
Account Titles and Explanations 
Debit 
Credit
Jan.      1Cash36,000 
        Amber Wilson, Capital 12,000
        Jean Turner, Capital 12,000
        Oscar White, Capital 12,000
 To record the initial capital contributions and allocate them to partners’ capital accounts.  
 
Req. 2
 
Date
2021 
Account Titles and Explanations 
Debit 
Credit
Dec.   31Amber Wilson, Capital6,500 
 Jean Turner, Capital2,000 
 Oscar White, Capital3,500 
 Income Summary  12,000
 To allocate the loss to the partners’ capital accounts.  
 
      
  WilsonTurnerWhiteTotal
Salary $           0      $ 11,000     $ 16,000$ 27,000
Ratio (1/6, 2/6, 3/6)  (6,500)  (13,000)(19,500)     (39,000)
Net loss allocated $ (6,500) $ (2,000)     $ (3,500)$ (12,000)
      
 

(continued) E12-19
 
Req. 3
 
Date
2021 
Accounts and Explanation 
Debit 
Credit
Dec.    31Amber Wilson, Capital5,500 
        Cash 4,000
        Jean Turner, Capital 600
        Oscar White, Capital 900
 To record the withdrawal of Amber Wilson from the partnership and allocate the bonus to the remaining partners. ($1,500 gain split using 2:3 profit-and-loss-sharing ratio. Turner: $1,500 x 2/5, White: $1,500 x 3/5)