Hasna Ali Aldahri

201610487
Advanced accounting
a- Entries for formation and events of 2016

Date

Formation Cash 120000

(Jan /1) Inventory 160000
Car and trucks 200000
Notes payable 40000
Nasser capital 440000
Cash 100000
Land 260000
Mortgage 100000
Hamad capital 260000

inventory 60000
cash 48000
account payable 12000
During2016
1
mortgage 10000
interest expense 4000
cash 14000

2
note payable 7000
interest expense 4000
cash 11000

3 cash 289000
account receivable 21000
sales revenue 310000

selling and general expense 68000

account payable 6200
cash 61800
4 depreciation expense 12000
accumulated -depreciation- equipment 12000
 (income distribution statement ) Naser Hamad total
Statement

withdrawals- Naser 19200

withdrawals- Hamad 19200
( income cash 38400
statement and
income Cost of goods sold 180000
distribution Inventory 180000
and closing and
the balance Nasser-Hamad partnership
sheet ) Income statement
For the year ended dec-31-2016

Sales Rev 310000

COGS (180000)
Gross profit 130000
Selling expense (68000)
Depreciation expense (12000)
EBIT 50000
Interest expense (8000)
Net income 42000
 42000

Interest on capital (3%*440000, 3%*260000) 13200 7800 (21000)

Salaries 24000 24000 (48000)

Reminder (27000)

60%, 40% (16200) (10800) 27000

21000 21000 0

Closing entries

Sales revenue 310000

Income summary 310000
Income summary 268000
COGS 180000
Interest expense 8000
Selling expense 68000
depreciation expense 12000

Income summary 21000

Naser capital 21000
Income summary 21000
Hamad capital 21000

Naser capital 19200

Withdrawals-Jordan 19200
Hamad capital 19200
Withdrawals-O’Neal 19200

Naser-Hamad partnership
Statement of financial position
dec-31-2016
 Assets

Non-current Assets
Land 260000
Car and trucks 200000
( acc-dip-equipment) (12000)
Current assets
Inventory 40000
Account receivable 21000
Cash 335800*

total assets 844800

*=120000+100000+289000-48000-14000-11000-38400-61800=335800
Liability and Equity
liabilities
account payable 18200*
note payable 33000**
mortgage 90000***
Equity
Naser capital 441800****
Hamad capital 261800*****
*=12000+6200
**=40000-7000
***=100000-10000
****=440000+21000-19200
*****=260000+21000-19200
total Liability and equity 844800

Pay 199600 for 0.2 (261800+441800+180000)=900000(total capital)

Pay more=GW old partners
Cash 199600
Naser capital 11760
Hamad capital 7840
Salem capital 180000

Admission