PRACTICE EXERCISES

PE 121A
Cash .................................................................................
Inventory ..........................................................................
Land..................................................................................
Notes Payable ............................................................
Josh Beach, Capital ...................................................

24,000
56,000
114,000
50,000
144,000

PE 121B
Cash .................................................................................
Accounts Receivable ......................................................
Patent ...............................................................................
Accounts Payable ......................................................
Allowance for Doubtful Accounts ............................
Jen Hall, Capital .........................................................

22,000
32,000
150,000
12,000
2,000
190,000

PE 122A
Distributed to Mooney:
Annual salary ..................................................
Interest ............................................................
Remaining income .........................................
Total distributed to Mooney ..........................
1

$50,000 14%
$150,000 14%
3
($240,000 $53,000 $28,000) 50%
2

659

Smithson

Mooney

Total

7,0001
79,500
$86,500

$ 53,000
21,0002
79,5003
$153,500

$ 53,000
28,000
159,000
$240,000

PE 122B
Distributed to Hutchins:
Annual salary ..................................................
Interest ............................................................
Deduct excess of allowances over income ..
Total distributed to Hutchins ........................

Hutchins

Jenkins

Total

$ 24,000
7,2001
(3,200)3
$ 28,000

9,6002
(1,600)4
$ 8,000

$ 24,000
16,800
(4,800)
$ 36,000

$60,000 12%
$80,000 12%
3
($36,000 $24,000 $16,800) 2/3
4
($36,000 $24,000 $16,800) 1/3
2

PE 123A
a. Equipment ..................................................................
Jordon Garmon, Capital .......................................
Kali Miller, Capital.................................................

12,000

b. Cash ............................................................................
Brandon Tarr, Capital ...........................................

64,000

8,000
4,000

64,000

PE 123B
a. Land ............................................................................
Weston Perry, Capital ..........................................
Drew Akins, Capital ..............................................

16,000

b. Drew Yancy, Capital...................................................

Jamarcus Webster, Capital ..................................

16,500

8,000
8,000

16,500*

*($25,000 + $8,000) 50%

PE 124A
Equity of Maples ..............................................................................
Baker contribution ..........................................................................
Total equity after admitting Baker .................................................
Bakers equity interest ....................................................................
Bakers equity after admission ......................................................
Bakers contribution .......................................................................
Bonus paid to Baker .......................................................................

660

$ 65,000
25,000
$ 90,000

30%
$ 27,000
25,000
$ 2,000