The ABC partnership had net income of $100,000 for 20X9. They allocate profits and losses in the ratio 5:3:2. After closing the 12/31/20X9 books they discovered that $30,000 was spent on a piece of land in December 20X9 and was expensed. What should happen?
What will be an ideal response?
Since the books are closed then the correction must be made against the capital accounts. The following journal entry would be made:
| Land | 30,000 | |||||
| A, Capital | 15,000 | |||||
| B, Capital | 9,000 | |||||
| C, Capital | 6,000 | |||||
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a. They are recorded at market value and then adjusted for inflation. b. They are recorded at market value for financial reporting purposes as historical cost may be arbitrary. c. Accountants use the term historical cost to refer to the original cost of an asset. d. Assets are measured using the time-period approach.
The cost sheets for incomplete jobs at the end of the period comprise the subsidiary ledger for
a. Finished Goods Inventory. b. Raw Material Inventory. c. Work in Process Inventory. d. Supplies Inventory.
Before beginning to compose the first draft of a message, the first step in the process is to select an appropriate channel of communication
Indicate whether the statement is true or false
On February 16, Hawthorne Co. declares a $0.37 dividend to be paid on April 5. Hawthorne has 2,030,000 shares of common stock issued and outstanding. The entry recorded by the company on February 16 includes a debit to:
A. Dividends Payable and a credit to Cash for $712,990. B. Dividends and a credit to Dividends Payable for $751,100. C. Dividends Payable and a credit to Cash for $751,100. D. Dividends and a credit to Dividends Payable for $712,990