View
14
Download
0
Category
Preview:
DESCRIPTION
LESSON 23-1. Forming a Partnership. 4. 4. INITIAL INVESTMENTS BY OWNERS. page 676. January 1. Received cash from partner, Sawyer Hess, as an initial investment, $15,000.00. Receipt No. 1. - PowerPoint PPT Presentation
Citation preview
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 23-1LESSON 23-1
Forming a Partnership
2
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
INITIAL INVESTMENTS BY OWNERSINITIAL INVESTMENTS BY OWNERS
11 22 3355
page 676
January 1. Received cash from partner, Sawyer Hess, as an initial investment, $15,000.00. Receipt No. 1.
January 1. Received cash, $10,000.00, and office equipment valued at $5,000.00, from partner, Kendra Sullivan, as an initial investment. Receipt No. 2.
4. Write the debit and credit amounts.
44 44
1. Write the date.
5. Write the debits to Cash.2. Write the account titles.
3. Write the receipt numbers.
3
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
WITHDRAWAL OF CASH BY PARTNERWITHDRAWAL OF CASH BY PARTNER
11 22 33 44 55
page 677
January 15. Kendra Sullivan, partner, withdrew cash for personal use, $500.00. Check No. 10.
1. Write the date.
2. Write the title of the account debited.
3. Write the check number.
4. Write the debit amount.
5. Write the credit amount.
4
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
WITHDRAWAL OF MERCHANDISE WITHDRAWAL OF MERCHANDISE BY PARTNERBY PARTNER page 678
January 15. Sawyer Hess, partner, withdrew merchandise for personal use, $200.00. Memorandum No. 1.
2. Write the account title.
3. Write the memorandum number.
4. Write the debit amount.
5. Write the account title.
1. Write the date.
6. Write the credit amount.
11
2233 44
55 66
5
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERMS REVIEWTERMS REVIEW
partnership partner partnership agreement
page 679
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 23-2LESSON 23-2
Distribution of Net Income and Owners’ Equity Statements
7
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
DISTRIBUTION OF NET INCOME DISTRIBUTION OF NET INCOME STATEMENTSTATEMENT
11
2233
4455
66
page 680
1. Heading
4. Second partner’s name
3. First partner’s share of net income
2. First partner’s name
5. Second partner’s share of net income
6. Write Net Income7. Total net income8. Double lines
7788
8
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
DISTRIBUTION OF NET INCOME STATEMENT DISTRIBUTION OF NET INCOME STATEMENT WITH UNEQUAL DISTRIBUTION OF EARNINGSWITH UNEQUAL DISTRIBUTION OF EARNINGS page 681
9
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
PARTNERS’ CAPITAL AND DRAWING PARTNERS’ CAPITAL AND DRAWING ACCOUNTSACCOUNTS page 682
10
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
5. Second partner’s ending capital
3. First partner’s ending capital
2. First partner’s name
6. Total Owners’ Equity
4. Second partner’s name
7. Double lines
OWNERS’ EQUITY STATEMENTOWNERS’ EQUITY STATEMENT page 683
11
22
3344
5566
1. Heading
77
11
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
OWNERS’ EQUITY STATEMENT WITH AN OWNERS’ EQUITY STATEMENT WITH AN ADDITIONAL INVESTMENT AND A NET LOSSADDITIONAL INVESTMENT AND A NET LOSS page 684
12
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
BALANCE SHEET FOR A PARTNERSHIPBALANCE SHEET FOR A PARTNERSHIP page 684
13
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERMS REVIEWTERMS REVIEW
distribution of net income statement owners’ equity statement
page 685
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 23-3LESSON 23-3
Dissolving a Partnership
15
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
ACCOUNT BALANCES BEFORE ACCOUNT BALANCES BEFORE REALIZATIONREALIZATION page 686
16
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
GAIN ON REALIZATIONGAIN ON REALIZATION page 686
1. Calculate the gain. 2. Record the entry.
22
August 1, 20--. Received cash from sale of truck, $13,000.00: original cost, $20,000.00; total accumulated depreciation recorded to date, $8,000.00. Receipt No. 316.
Gain on Realization
=Book Value ofAsset Sold
–Value of Asset Received
$1,000.00=–Cash $13,000.00
Cost$20,000.00Accum. Depr. 8,000.00Book Value$12,000.00
11
17
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LOSS ON REALIZATIONLOSS ON REALIZATION page 687
1. Calculate the loss. 2. Record the entry.
22
August 1. Received cash from sale of supplies, $1,100.00; balance of supplies account, $1,500.00. Receipt No. 317.
Loss on Realization
=Book Value ofAsset Sold
–Value of Asset Received
$(400.00)=–Cash $1,100.00 Supplies $1,500.00
11
18
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LIQUIDATING LIABILITIESLIQUIDATING LIABILITIES page 688
August 4, 20--. Paid cash to all creditors for the amounts owed, $4,000.00. Check No. 422.
19
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
ACCOUNT BALANCES AFTER LIQUIDATION ACCOUNT BALANCES AFTER LIQUIDATION OF NONCASH ASSETS AND PAYMENT OF OF NONCASH ASSETS AND PAYMENT OF LIABILITIESLIABILITIES page 688
20
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
$360.00 240.00$600.00
==
60%40%
××
$600.00$600.00
WalkerJeterTotal
Share of the Balance of Loss and Gain on Realization
=Fixed Percentage
×Balance of Loss and Gain on Realization
DISTRIBUTING LOSS OR GAIN ON DISTRIBUTING LOSS OR GAIN ON REALIZATION TO PARTNERSREALIZATION TO PARTNERS page 689
August 6, 20--. Recorded distribution of gain on realization: to Adam Walker, $360.00; to Shirley Jeter, $240.00. Memorandum No. 412.
1. Calculate each partner’s share of gain or loss.
2. Record entry to distribute gain or loss.
22
11
21
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
DISTRIBUTING REMAINING CASH TO DISTRIBUTING REMAINING CASH TO PARTNERSPARTNERS page 689
August 6. Recorded final distribution of remaining cash to partners: to Adam Walker, $18,360.00; to Shirley Jeter, $12,740.00. Check Nos. 423 and 424.
22
LESSON 23-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERMS REVIEWTERMS REVIEW
liquidation of a partnership realization limited liability partnership (LLP)
page 690
Recommended