Problem 12-2AAt the end of its first year of operations on December 31, 2014, NBS Company’s accounts show the following.PartnerArt NienstedGreg BolenKrista SaylerDrawings$23,15014,38011,510Capital$44,78030,38025,230The capital balance represents each partner’s initial capital investment. Therefore, net income or net loss for2014 has not been closed to the partners’ capital accounts.Your answer is partially correct. Try again.Journalize the entry to record the division of net income for the year 2014 under each of the followingindependent assumptions. (Credit account titles are automatically indented when amount is entered.Do not indent manually.)(1) Net income is $31,750. Income is shared 6 : 3 : 1.(2) Net income is $41,340. Niensted and Bolen are given salary allowances of $14,520 and $10,620,respectively. The remainder is shared equally.(3) Net income is $19,050. Each partner is allowed interest of 10% on beginning capital balances. Niensted isgiven a $15,101 salary allowance. The remainder is shared equally.No Account Titles and.Explanation1.Income SummaryDebitCredit31750A. Niensted, CapitalG. Bolen, Capital9525K. Sayler, Capital2.190503175Income Summary41340A. Niensted, CapitalG. Bolen, Capital15480K. Sayler, Capital3.242401620Income Summary19050A. Niensted, Capital15925G. Bolen, Capital1211K. Sayler, Capital1914LINK TO TEXT Your answer is partially correct. Try again.Prepare a schedule showing the division of net income under assumption (3) above. (If an amount reducesthe account balance then enter with a negative sign preceding the number or parenthesis, e.g.-15,000, (15,000).)Salary allowanceDIVISION OF NET INCOMEArt NienstedGreg Bolen$Krista SaylerTotal$1510115101Interest allowance on capital44783038252310039Total salaries and interest195793038252325140Remaining deficiency(3654)(1827)(609)(6090)Total division of net income$$15925$1211$191419050LINK TO TEXTYour answer is partially correct. Try again.Prepare a partners’ capital statement for the year under assumption (3) above. (List items that increasepartners capital first.)NBS COMPANYPartners’ Capital StatementFor the Year Ended December 31, 2014Art NienstedCapital, January 1Greg BolenKrista Sayler$$$Total$44780Draw ingsCapital, December 311211191419050315912714411944023150:Less10039060705Net Income / (Loss)2523015925:Add30380143801151049040$$37555Click if you would like to Show Work for this question:$17211$1563470400Open Show WorkAt April 30, partners’ capital balances in PDL Company are: G. Donley $52,500, C. Lamar $49,200, and J. Pinkston$17,800. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT Company is formed by admittingJ. Terrell to the firm as a partner. Your answer is partially correct. Try again.Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titlesare automatically indented when amount is entered. Do not indent manually.)(1)(2)(3)(4)TerrellTerrellTerrellTerrellpurchases 50% of Pinkston’s ownership interest by paying Pinkston $16,080 in cash.purchases 331/3% of Lamar’s ownership interest by paying Lamar $14,570 in cash.invests $62,300 for a 30% ownership interest, and bonuses are given to the old partners.invests $42,100 for a 30% ownership interest, which includes a bonus to the new partner.No Account Titles and.Explanation1.J. Pinkston, CapitalDebit8900J. Terrell, Capital2.C. Lamar, Capital890016400J. Terrell, Capital3.CashCredit1640062300J. Terrell, CapitalG. Donley, Capital3880C. Lamar, Capital3104J. Pinkston, Capital4.54540776Cash42100J. Terrell, Capital3190G. Donley, Capital2552C. Lamar, Capital638J. Pinkston, Capital48480
Problem 12-2AAt the end of its first year of operations on December 31, 2014, NBS Company’s accounts show the following.PartnerArt NienstedGreg BolenKrista SaylerDrawings$23,15014,38011,510Capital$44,78030,38025,230The capital balance represents each partner’s initial capital investment. Therefore, net income or net loss for2014 has not been closed to the partners’ capital accounts.Your answer is partially correct. Try again.Journalize the entry to record the division of net income for the year 2014 under each of the followingindependent assumptions. (Credit account titles are automatically indented when amount is entered.Do not indent manually.)(1) Net income is $31,750. Income is shared 6 : 3 : 1.(2) Net income is $41,340. Niensted and Bolen are given salary allowances of $14,520 and $10,620,respectively. The remainder is shared equally.(3) Net income is $19,050. Each partner is allowed interest of 10% on beginning capital balances. Niensted isgiven a $15,101 salary allowance. The remainder is shared equally.No Account Titles and.Explanation1.Income SummaryDebitCredit31750A. Niensted, CapitalG. Bolen, Capital9525K. Sayler, Capital2.190503175Income Summary41340A. Niensted, CapitalG. Bolen, Capital15480K. Sayler, Capital3.242401620Income Summary19050A. Niensted, Capital15925G. Bolen, Capital1211K. Sayler, Capital1914LINK TO TEXT Your answer is partially correct. Try again.Prepare a schedule showing the division of net income under assumption (3) above. (If an amount reducesthe account balance then enter with a negative sign preceding the number or parenthesis, e.g.-15,000, (15,000).)Salary allowanceDIVISION OF NET INCOMEArt NienstedGreg Bolen$Krista SaylerTotal$1510115101Interest allowance on capital44783038252310039Total salaries and interest195793038252325140Remaining deficiency(3654)(1827)(609)(6090)Total division of net income$$15925$1211$191419050LINK TO TEXTYour answer is partially correct. Try again.Prepare a partners’ capital statement for the year under assumption (3) above. (List items that increasepartners capital first.)NBS COMPANYPartners’ Capital StatementFor the Year Ended December 31, 2014Art NienstedCapital, January 1Greg BolenKrista Sayler$$$Total$44780Draw ingsCapital, December 311211191419050315912714411944023150:Less10039060705Net Income / (Loss)2523015925:Add30380143801151049040$$37555Click if you would like to Show Work for this question:$17211$1563470400Open Show WorkAt April 30, partners’ capital balances in PDL Company are: G. Donley $52,500, C. Lamar $49,200, and J. Pinkston$17,800. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT Company is formed by admittingJ. Terrell to the firm as a partner. Your answer is partially correct. Try again.Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titlesare automatically indented when amount is entered. Do not indent manually.)(1)(2)(3)(4)TerrellTerrellTerrellTerrellpurchases 50% of Pinkston’s ownership interest by paying Pinkston $16,080 in cash.purchases 331/3% of Lamar’s ownership interest by paying Lamar $14,570 in cash.invests $62,300 for a 30% ownership interest, and bonuses are given to the old partners.invests $42,100 for a 30% ownership interest, which includes a bonus to the new partner.No Account Titles and.Explanation1.J. Pinkston, CapitalDebit8900J. Terrell, Capital2.C. Lamar, Capital890016400J. Terrell, Capital3.CashCredit1640062300J. Terrell, CapitalG. Donley, Capital3880C. Lamar, Capital3104J. Pinkston, Capital4.54540776Cash42100J. Terrell, Capital3190G. Donley, Capital2552C. Lamar, Capital638J. Pinkston, Capital48480
Problem 12-2AAt the end of its first year of operations on December 31, 2014, NBS Company’s accounts show the following.PartnerArt NienstedGreg BolenKrista SaylerDrawings$23,15014,38011,510Capital$44,78030,38025,230The capital balance represents each partner’s initial capital investment. Therefore, net income or net loss for2014 has not been closed to the partners’ capital accounts.Your answer is partially correct. Try again.Journalize the entry to record the division of net income for the year 2014 under each of the followingindependent assumptions. (Credit account titles are automatically indented when amount is entered.Do not indent manually.)(1) Net income is $31,750. Income is shared 6 : 3 : 1.(2) Net income is $41,340. Niensted and Bolen are given salary allowances of $14,520 and $10,620,respectively. The remainder is shared equally.(3) Net income is $19,050. Each partner is allowed interest of 10% on beginning capital balances. Niensted isgiven a $15,101 salary allowance. The remainder is shared equally.No Account Titles and.Explanation1.Income SummaryDebitCredit31750A. Niensted, CapitalG. Bolen, Capital9525K. Sayler, Capital2.190503175Income Summary41340A. Niensted, CapitalG. Bolen, Capital15480K. Sayler, Capital3.242401620Income Summary19050A. Niensted, Capital15925G. Bolen, Capital1211K. Sayler, Capital1914LINK TO TEXT Your answer is partially correct. Try again.Prepare a schedule showing the division of net income under assumption (3) above. (If an amount reducesthe account balance then enter with a negative sign preceding the number or parenthesis, e.g.-15,000, (15,000).)Salary allowanceDIVISION OF NET INCOMEArt NienstedGreg Bolen$Krista SaylerTotal$1510115101Interest allowance on capital44783038252310039Total salaries and interest195793038252325140Remaining deficiency(3654)(1827)(609)(6090)Total division of net income$$15925$1211$191419050LINK TO TEXTYour answer is partially correct. Try again.Prepare a partners’ capital statement for the year under assumption (3) above. (List items that increasepartners capital first.)NBS COMPANYPartners’ Capital StatementFor the Year Ended December 31, 2014Art NienstedCapital, January 1Greg BolenKrista Sayler$$$Total$44780Draw ingsCapital, December 311211191419050315912714411944023150:Less10039060705Net Income / (Loss)2523015925:Add30380143801151049040$$37555Click if you would like to Show Work for this question:$17211$1563470400Open Show WorkAt April 30, partners’ capital balances in PDL Company are: G. Donley $52,500, C. Lamar $49,200, and J. Pinkston$17,800. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT Company is formed by admittingJ. Terrell to the firm as a partner. Your answer is partially correct. Try again.Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titlesare automatically indented when amount is entered. Do not indent manually.)(1)(2)(3)(4)TerrellTerrellTerrellTerrellpurchases 50% of Pinkston’s ownership interest by paying Pinkston $16,080 in cash.purchases 331/3% of Lamar’s ownership interest by paying Lamar $14,570 in cash.invests $62,300 for a 30% ownership interest, and bonuses are given to the old partners.invests $42,100 for a 30% ownership interest, which includes a bonus to the new partner.No Account Titles and.Explanation1.J. Pinkston, CapitalDebit8900J. Terrell, Capital2.C. Lamar, Capital890016400J. Terrell, Capital3.CashCredit1640062300J. Terrell, CapitalG. Donley, Capital3880C. Lamar, Capital3104J. Pinkston, Capital4.54540776Cash42100J. Terrell, Capital3190G. Donley, Capital2552C. Lamar, Capital638J. Pinkston, Capital48480
Problem 12-2AAt the end of its first year of operations on December 31, 2014, NBS Company’s accounts show the following.PartnerArt NienstedGreg BolenKrista SaylerDrawings$23,15014,38011,510Capital$44,78030,38025,230The capital balance represents each partner’s initial capital investment. Therefore, net income or net loss for2014 has not been closed to the partners’ capital accounts.Your answer is partially correct. Try again.Journalize the entry to record the division of net income for the year 2014 under each of the followingindependent assumptions. (Credit account titles are automatically indented when amount is entered.Do not indent manually.)(1) Net income is $31,750. Income is shared 6 : 3 : 1.(2) Net income is $41,340. Niensted and Bolen are given salary allowances of $14,520 and $10,620,respectively. The remainder is shared equally.(3) Net income is $19,050. Each partner is allowed interest of 10% on beginning capital balances. Niensted isgiven a $15,101 salary allowance. The remainder is shared equally.No Account Titles and.Explanation1.Income SummaryDebitCredit31750A. Niensted, CapitalG. Bolen, Capital9525K. Sayler, Capital2.190503175Income Summary41340A. Niensted, CapitalG. Bolen, Capital15480K. Sayler, Capital3.242401620Income Summary19050A. Niensted, Capital15925G. Bolen, Capital1211K. Sayler, Capital1914LINK TO TEXT Your answer is partially correct. Try again.Prepare a schedule showing the division of net income under assumption (3) above. (If an amount reducesthe account balance then enter with a negative sign preceding the number or parenthesis, e.g.-15,000, (15,000).)Salary allowanceDIVISION OF NET INCOMEArt NienstedGreg Bolen$Krista SaylerTotal$1510115101Interest allowance on capital44783038252310039Total salaries and interest195793038252325140Remaining deficiency(3654)(1827)(609)(6090)Total division of net income$$15925$1211$191419050LINK TO TEXTYour answer is partially correct. Try again.Prepare a partners’ capital statement for the year under assumption (3) above. (List items that increasepartners capital first.)NBS COMPANYPartners’ Capital StatementFor the Year Ended December 31, 2014Art NienstedCapital, January 1Greg BolenKrista Sayler$$$Total$44780Draw ingsCapital, December 311211191419050315912714411944023150:Less10039060705Net Income / (Loss)2523015925:Add30380143801151049040$$37555Click if you would like to Show Work for this question:$17211$1563470400Open Show WorkAt April 30, partners’ capital balances in PDL Company are: G. Donley $52,500, C. Lamar $49,200, and J. Pinkston$17,800. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT Company is formed by admittingJ. Terrell to the firm as a partner. Your answer is partially correct. Try again.Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titlesare automatically indented when amount is entered. Do not indent manually.)(1)(2)(3)(4)TerrellTerrellTerrellTerrellpurchases 50% of Pinkston’s ownership interest by paying Pinkston $16,080 in cash.purchases 331/3% of Lamar’s ownership interest by paying Lamar $14,570 in cash.invests $62,300 for a 30% ownership interest, and bonuses are given to the old partners.invests $42,100 for a 30% ownership interest, which includes a bonus to the new partner.No Account Titles and.Explanation1.J. Pinkston, CapitalDebit8900J. Terrell, Capital2.C. Lamar, Capital890016400J. Terrell, Capital3.CashCredit1640062300J. Terrell, CapitalG. Donley, Capital3880C. Lamar, Capital3104J. Pinkston, Capital4.54540776Cash42100J. Terrell, Capital3190G. Donley, Capital2552C. Lamar, Capital638J. Pinkston, Capital48480
