{"id":95002,"date":"2022-09-13T06:15:16","date_gmt":"2022-09-13T06:15:16","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/question-1-kramer-and-knox-began-a-partnership-by-investing\/"},"modified":"2022-09-13T06:15:16","modified_gmt":"2022-09-13T06:15:16","slug":"question-1-kramer-and-knox-began-a-partnership-by-investing","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/question-1-kramer-and-knox-began-a-partnership-by-investing\/","title":{"rendered":"Question 1. kramer and knox began a partnership by investing"},"content":{"rendered":"
\n

Question 1.\u00a0\u00a0\u00a0\u00a0 <\/p>\n

Kramer and Knox began a partnership by investing $60,000 and $80,000, respectively. During its first year, the partnership earened $160,000. Prepare calculations showing how the $160,000 income should de allocated to the partners under each of the following three separete plans for sharing income and loss: (1) the partners failed to agree on a method to share income ; (2) the partners agreed to share income and loss in proportion to their initial investments; and (3) the partners agreed to share income by granting a $50,000 per year salary allowance to Kramer, a $40,000 per year salary allowance to Knox, 10% interest on thir initial capital investments, and the remaining balance shared equally. <\/p>\n

Note: Income allocation in a partnership. <\/p>\n

Plan 3, Kramer , $84,000 <\/p>\n

Question2. <\/p>\n

Prepare journal entries to record the following four separate issuances of stock. <\/p>\n

a. 2000 shares of no-per common stock are issued to the corporation\u2019s promoters in exchanges for their efforts, estimated to be worth $40,000. The stock has no stated value. <\/p>\n

b. 2000 shares of no-per common stock are issued to the corporation\u2019s promoters in exchanges for their efforts, estimated to be worth $40,000. The stock has a $1 per share stated value. <\/p>\n

c. 4000 shares of $5 par value common stock are issued for $35,000 cash. <\/p>\n

d. 1000 shares of $50 per value preferred stock are issued for $60,000 cash. <\/p>\n

Question3. <\/p>\n

The stockholders equity of TVX company at the beginning of the day on February 5 follows. <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Common stock – $10 par value, 150,000 shares <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Authorized, 60,000 shares issued and outstanding \u2026\u2026\u2026\u2026 $600,000 <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Paid-in capital in excess of par value, common stock \u2026\u2026\u2026\u2026\u2026\u00a0\u00a0\u00a0\u00a0425,000 <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Retained earnings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u00a0\u00a0\u00a0\u00a0550,000 <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total stockholders\u2019 equity\u00a0\u00a0\u00a0\u00a0\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$1,575,000 <\/p>\n

on February 5, the directors declare a 20% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock\u2019s market value is $40 per share on February 5 before the stock dividend. The stock\u2019s market value is $33.40 per share on February 28. <\/p>\n

1. Prepare entries to record both the dividend declaration and its distribution <\/p>\n

2. one stockholder owned 800 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholders shares immediately before and after the stock dividend of February 5. <\/p>\n

3. compute the total market value of the investor\u2019s shares in part 2 as of February 5 and February 28. <\/p>\n

Question 4. <\/p>\n

Kohler Corporation reports the following components of stock holders\u2019 equity on December 31, 2008. <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Common stock – $10par value, 100,00 shares authorized, <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a040,000 shares issued and outstanding \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.. $400,000 <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Paid-in capital in excess of par value, common stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$60,000 <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Retained earnings\u00a0\u00a0\u00a0\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..\u00a0\u00a0\u00a0$270,000 <\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total stockholders\u2019 equity \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$730,000 <\/p>\n

In year 2009, the following transactions affected its stockholders, equity accounts. <\/p>\n

Jan. 1 purchased 4,000 shares of its own stock at $20 cash per share . <\/p>\n

Jan. 5 Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. <\/p>\n

Feb. 28\u00a0\u00a0\u00a0\u00a0Paid the dividend declared on January 5. <\/p>\n

July 6\u00a0\u00a0\u00a0sold 1,500 of its treasury shares at $24 cash per share. <\/p>\n

Aug 22\u00a0\u00a0\u00a0Sold 2,500 of its treasury shares at $17 cash per share. <\/p>\n

Sept. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. <\/p>\n

Oct. 28 Paid the dividend declared on September 5. <\/p>\n

Dec. 31 closed the $388,000 credit balance ( from net income ) in the income summery account to Retained Earnings. <\/p>\n

Required <\/p>\n

1. Prepare journal entries to record each of these transactions for 2009 <\/p>\n

2. Prepare a statement of retained earnings for the year ended December 31, 2009. <\/p>\n

3. Prepare the stockholders\u2019 equity section of the company\u2019s balance sheet as of December 31, 2009.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Question 1.\u00a0\u00a0\u00a0\u00a0 Kramer and Knox began a partnership by investing $60,000 and $80,000, respectively. During its first year, the partnership earened $160,000. Prepare calculations showing how the $160,000 income should de allocated to the partners under each of the following three separete plans for sharing income and loss: (1) the partners failed to agree on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-95002","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/95002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=95002"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/95002\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=95002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=95002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=95002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}