The Rubble-Flintstone Company was started on January 1, Year 1 as a partnership. The initial investments from the two partners were $50,000 from Rubble and $30,000 from Flintstone. During Year 1, Rubble-Flintstone Company earned $70,000 in cash revenue, paid $42,000 in cash expenses and the partners withdrew $5,000 each for their personal use. The partnership agreement calls for equal sharing of net income or loss. Required:Using only the above information, prepare an income statement, a capital statement, and a balance sheet for the Rubble-Flintstone Company.
What will be an ideal response?
| Rubble-Flintstone Partnership |
| Income Statement |
| For the Year Ended December 31, Year 1 |
| Revenue | $ 70,000 |
| Less: Expenses | 42,000 |
| Net Income | $ 28,000 |
| Rubble-Flintstone Partnership |
| Capital Statement |
| For the Year Ended December 31, Year 1 |
| Beginning capital balance | $ - |
| Add: Investments by owner | 80,000 |
| Add: Net Income | 28,000 |
| Less: Withdrawals by owner | (10,000) |
| Ending capital balance | $ 98,000 |
| Rubble-Flintstone Partnership |
| Balance Sheet |
| For the Year Ended December 31, Year 1 |
| Assets | ? |
| Cash | $98,000 |
| ? | ? |
| Equity | ? |
| Rubble, Capital | $59,000 |
| Flintstone, Capital | 39,000 |
| Total Capital | $98,000 |
Ending Flintstone, Capital = $30,000 ? $5,000 + ($28,000 × 1/2) = $39,000
You might also like to view...
Problems with the matrix structure are as follows:
A. upper management is no longer involved in key decisions of the IC. B. global branding and production coordination are hindered. C. functional concerns are ignored. D. two or more managers must agree on decisions, which can lead to slow decision making. E. special divisions often must be established to serve heterogeneous customer segments.
When hiring employees for the venture, the entrepreneur should consider the candidate's skills and abilities and avoid considering the individual's personality.
Answer the following statement true (T) or false (F)
SEC Corporation has been operating as a C corporation since 2016. It elected to become an S corporation, effective January 1, 2019. On December 31, 2018, SEC reported a net unrealized built-in gain of $10,000. In addition to other transactions in 2019, SEC sold inventory it owned at the beginning of 2019 (it did not sell any other assets it owned at the beginning of 2019). At the beginning of the year, the inventory it sold had a fair market value of $40,000 and a FIFO tax basis of $15,000. SEC sold the inventory for $28,000. If SEC had been a C corporation in 2019, its taxable income would have been $40,000. How much built-in gains tax must SEC pay in 2019? Assume the corporate tax rate is 21%.
What will be an ideal response?
Selecting a subset of clusters and then collecting data on all elements in those clusters is referred to as _____ cluster sampling
a. stratified b. convenient c. single-stage d. two-stage