Questions from Accounting Principles

Q: Jill Parsons purchases for $72,000 Jamar’s interest in the

Jill Parsons purchases for $72,000 Jamar’s interest in the Tholen-Jamar partnership. Assuming that Jamar has a $68,000 capital balance in the partnership, what journal entry is made by the partnership...

Q: Jaime Keller has a $41,000 capital balance in a

Jaime Keller has a $41,000 capital balance in a partnership. She sells her interest to Sam Parmenter for $45,000 cash. What entry is made by the partnership for this transaction?

Q: Jurgens Company has had 4 years of net income. Due to

Jurgens Company has had 4 years of net income. Due to this success, the market price of its 400,000 shares of $3 par value common stock has increased from $12 per share to $46. During this period, pai...

Q: Andrea Riley retires from the partnership of Jaggard, Pester, and

Andrea Riley retires from the partnership of Jaggard, Pester, and Riley. She receives $85,000 of partnership assets in settlement of her capital balance of $81,000. Assuming that the income-sharing ra...

Q: Your roommate argues that partnership assets should be revalued in situations like

Your roommate argues that partnership assets should be revalued in situations like those in Question 21. Why is this generally not done? Data from Question 21: Jaime Keller has a $41,000 capital bala...

Q: How is a deceased partner’s equity determined?

How is a deceased partner’s equity determined?

Q: 1. Mark Kemp, a student, asks your help in

1. Mark Kemp, a student, asks your help in understanding the following characteristics of a corporation: (a) separate legal existence, (b) limited liability of stockholders, and (c) transferable owner...

Q: What effect does the issuance of stock at a price above par

What effect does the issuance of stock at a price above par value have on the issuer’s net income? Explain.

Q: Why is common stock usually not issued at a price that is

Why is common stock usually not issued at a price that is less than par value?

Q: Land appraised at $80,000 is purchased by issuing 1

Land appraised at $80,000 is purchased by issuing 1,000 shares of $20 par value common stock. The market price of the shares at the time of the exchange, based on active trading in the securities mark...