Questions -
Q1. Avon Co., a wholly owned subsidiary of Wilson Corp., sold goods to Wilson near the end of 2013. The goods had cost Avon $155,000 and the selling price was $240,000. Wilson had sold 10% of the goods by the end of the year.
Required: Prepare the Consolidation Entries TI, G and *G as required for 2013 and 2014.
Q2. When Danny withdrew from John, Daniel, Harry, and Danny, LLP, he was paid $90,000 by the partnership, although his capital account balance was only $60,000. The four partners shared net income and losses equally. Write the appropriate entry to record this situation.
Q3. The capital account balances for Donald & Hanes LLP on January 1, 2011, were as follows:
Donald, capital - $200,000
Hanes, capital - 100,000
Donald and Hanes shared net income and losses in the ratio of 4:1, respectively. The partners agreed to admit May to the partnership with a 30% interest in partnership capital and net income. May invested $90,000 cash, and no goodwill was recognized.hat is the balance of Donald's capital account after the new partnership is created? Show your computations.