The Prince-Robbins partnership has the following capital account balances on January 1, 2018:

Prince is allocated 70 percent of all profits and losses with the remaining 30 percent assigned to Robbins after interest of 8 percent is given to each partner based on beginning capital balances.

On January 2, 2018, Jeffrey invests $61,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 8 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2018, the partnership reports a net income of $23,000.

Prepare the journal entry to record Jeffrey’s entrance into the partnership on January 2, 2018.

Determine the allocation of income at the end of 2018.

The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $ 90,000 Robbins, Capital 80,000 Prince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to Robbins after interest of 9 percent is given to each partner based on beginning capital balances. On January 2, 2018, Jeffrey invests $49,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 9 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2018, the partnership reports a net income of $19,000. Prepare the journal entry to record Jeffrey’s entrance into the partnership on January 2, 2018. Determine the allocation of income at the end of 2018.

Principles of Financial Accounting

On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 25,000 and 84,000 units, respectively, were produced.

1. Compute depreciation expense, accumulated depreciation and the book value of the drill press at December 31, 2018 and 2019, assuming the straight-line method is used.

2. Compute depreciation expense, accumulated depreciation and the book value of the drill press at December 31, 2018 and 2019, assuming the double-declining-balance method is used.

3. Compute depreciation expense, accumulated depreciation and the book value of the drill press at December 31, 2018 and 2019, assuming the units-of-production method is used.

The Prince-Robbins partnership has the following capital account balances on January 1, 2018:

Prince is allocated 70 percent of all profits and losses with the remaining 30 percent assigned to Robbins after interest of 7 percent is given to each partner based on beginning capital balances.

On January 2, 2018, Jeffrey invests $43,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 7 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2018, the partnership reports a net income of $12,000.

Prepare the journal entry to record Jeffrey’s entrance into the partnership on January 2, 2018.

Determine the allocation of income at the end of 2018.

On January 1, 2018, entered into a three-year lease for new office space agreeing to lease payments of: $7,000 in 2018, $6,000 in 2019 and $5,000 in 2020. Payments are due on December 31 of each year with the first payment being made on December 31, 2018. Harlon is aware that the lessor used a 5% interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1-4. Prepare the appropriate entries for Harlon Consulting on January 1, 2018, December 31, 2018, 2019 and 2020 to record the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.)

Consider the data in the table above for a 1-good economy (the only good produced and consumed)

Given that the CPI for 2016 is 100,

• Compute the CPI inflation rates for the years 2017 and 2018.
• Determine the percentage change in GDP deflator for 2016-2017 and 2017-2018. Compare your results with your answers in (a) and justify.
• Explain three problems associated with using CPI to measure cost of living.
• The government in 2018 announced and implemented a 10 percent increase in the nominal salary of an average public servant from $500 in 2017. Does the salary of an average public servant have more purchasing power in 2017 or 2018?
• Briefly describe the concept of ‘rebasing’. Explain how rebasing affects the income and cost of living estimates of a country.

Juggernaut acquired a passive partnership activity in January of 2015. His at-risk basis at the beginning of 2018 was $65,000. Juggernaut also owns a rental property that generated income of $23,000 in 2018 and $19,000 in 2019. Juggernaut’s share of income and loss from the partnership activity is: 2018 <$79,000> 2019 32,000 Complete the following tables. AT RISK RULES ONLY

FOR 2018

Deductible under at-risk provisions                             ____________________

Adjusted basis at 12/31/18                                          ____________________

Suspended under at-risk provisions                             ___________________

FOR 2019

Deductible under at-risk provisions                             ____________________

Adjusted basis at 12/31/19                                          ____________________

Suspended under at-risk provisions                             ____________________

PASSIVE RULES ONLY

FOR 2018

Deductible under passive loss provisions                     ____________________

Suspended under passive loss provisions                     ____________________

FOR 2019

Deductible under passive loss provisions                     ____________________

Suspended under passive loss provisions                     ____________________

iMMEDIATE ASSISTANCE PLEASE

The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $ 165,000 Robbins, Capital 155,000 Prince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to Robbins after interest of 9 percent is given to each partner based on beginning capital balances. On January 2, 2018, Jeffrey invests $94,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 9 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2018, the partnership reports a net income of $34,000. Prepare the journal entry to record Jeffrey’s entrance into the partnership on January 2, 2018. Determine the allocation of income at the end of 2018.

Brief Exercise 8-8 LIFO method [LO8-4]

Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2018, was $500,000 (25,000 units at $20 each). During 2018, 90,000 units were purchased, all at the same price of $27 per unit. 95,000 units were sold during 2018. Esquire uses a periodic inventory system.

Complete the below table to calculate the December 31, 2018, ending inventory and cost of goods sold for 2018.

The Prince-Robbins partnership has the following capital account balances on January 1, 2018:

Prince is allocated 80 percent of all profits and losses with the remaining 20 percent assigned to Robbins after interest of 8 percent is given to each partner based on beginning capital balances.

On January 2, 2018, Jeffrey invests $46,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 8 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2018, the partnership reports a net income of $18,000.

1. Prepare the journal entry to record Jeffrey’s entrance into the partnership on January 2, 2018.

2. Determine the allocation of income at the end of 2018.