ACT325_mod1 xxxxxxxxxx ACT 325 – Principles of Financial Accounting II
October 4, 2015

ACT325_mod1 | | | | | | | | | | Date | | Account Titles and Explanation | P. R. | Debit | Credit | a. | | Other Assets - Starting balance | | | 106,000 | | | | | Sale of Other Assets | | | | 85,000 | | | | | Balance Remaining; Loss | | 21,000 | | | | | | | | | | | | | | $21,000 divided by total of all ratios 10 = $2,100 | | | | | | Sand has 1 share of the partnership | | | | | | | 2,100 x 1 = 2,100 | | | | | | | | Mell has 4 shares of the partnership | | | | | | | 2,100 x 4 = 8,400 | | | | | | | | Rand has 5 shares of the partnership | | | | | | | 2,100 x 5 = 10,500 | | | | | | | | | | | | | | | | b. | | Sand - Starting balance | | | | | 1,200 | | | | Deducting Sand's share of loss | | 2,100 | | | | | Deficit balance of capital account | | -900 | | | | | | | | | | | | | | Mell - Starting balance | | | | | 11,700 | | | | Deducting Mell's share of loss | | 8,400 | | | | | Balance of capital account | | | 3,300 | | | | | | | | | | | | | Rand - Starting balance | | | | | 15,100 | | | | Deducting Rand's share of loss | | 10,500 | | | | | Balance of capital account | | | 4,600 | | | | | | | | | | | c. | | $900 deficit divided by Mell and Rand's shares | | | | | | | 900 / 9 = 100 | | | | | | | | Mell - Starting balance | | | | | 3,300 | | | | 100 x 4 = 400 | | | | 400 | | | | | Cash Mell will receive | | | | 2,900 |