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creativ13 [48]
3 years ago
9

Admitting New Partners Who Buy an Interest and Contribute AssetsThe capital accounts of Trent Henry and Tim Chou have balances o

f $160,000 and $100,000, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $35,000 and one-fourth of Chou’s interest for $29,000. Clarke contributes $90,000 cash to the partnership, for which she is to receive an ownership equity of $90,000.a. Journalize the entry to record the admission of Gilbert. For a compound transaction, if an amount box does not require an entry, leave it blank.b. Journalize the entry to record the admission of Clarke.c. What are the capital balances of each partner after the admission of the new partners?
Business
1 answer:
tamaranim1 [39]3 years ago
6 0

Answer:

Explanation:

The journal entries and the computations are shown below:

a. Henry's Capital A/c  Dr $32,000

   Chou's Capital A/c Dr $25,000

                To Gilbert's Capital A/c $57,000

(Being the admission of Gilbert is recorded)

The calculation would be

For Trent Henry

= Capital balance × interest buyed

= $160,000 × 1 ÷ 5

= $32,000

For Tim Chou

= Capital balance × interest buyed

= $100,000 × 1 ÷ 4

= $25,000

b. Cash A/c Dr $90,000

          To  Clarke's Capital A/c $90,000

(Being the contributed amount is recorded)

c. Capital balances would be

Particulars                          Henry       Chou       Gilbert        Clarke

Capital before admission $160,000     $100,000    

Amount after Admission       -$32,000     -$25,000  $57,000          $90,000

New Capital balances         $128,000      $75,000 $57,000       ,$90,000

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Madole Corporation has two production departments,Forming and Customizing.The company uses a job-order costing system and comput
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Complete Question:

Madole Corporation has two production departments,Forming and Customizing.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Forming Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours.At the beginning of the current year,the company had made the following estimates:

Machining Customizing Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 20,000 2,000 $90,000 $88,000 18,000 1,000 $ 2.00 $ 4.00 During the current month the company started and finished Job K973. The following data were recorded for this job: Job K973 Machine-hours Direct labor-hours Machining Customizing 70 40 40 60.

a. Calculate the estimated total manufacturing overhead for the Forming Department.

b. Calculate the predetermined overhead rate for the Customizing Department.

c. Calculate the total overhead applied to Job K973 in both departments.

Answer:

Madole Corporation

a. Calculation of the Estimated total manufacturing overhead:

                                                                    Machining  Customizing Total

Total fixed manufacturing overhead cost   $90,000    $88,000  $178,000

Variable manufacturing overhead cost         36,000      80,000     116,000

Total overhead cost                                    $126,000  $168,000 $294,000

Estimated total manufacturing overhead cost for the Forming Department = $126,000

b. Calculation of the predetermined overate rate for the Customizing Department = Overhead cost/Direct labor hours

= $168,000/2,000

= $84 per direct labor hour

For Forming department = $126,000/18,000 = $7 per machine hour

c. Total overhead applied to Job K973:

Machining = 70 * $7 =           $490

Customizing = 60 * $84 = $5,040

Total overhead applied = $5,530

Explanation:

a) Data and Calculations:

                                                                            Machining     Customizing

Machine-hours                                                       18,000        20,000

Direct labor-hours                                                   1,000           2,000

Total fixed manufacturing overhead cost           $90,000     $88,000

Variable manufacturing overhead per machine-hour $2.00

Variable manufacturing overhead per direct labor-hour        $ 4.00

Data for Job K973

                                           Machining     Customizing

Machine-hours                     70                     40

Direct labor-hours               40                     60

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