PHP Comprehensive Problem
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Transcript of PHP Comprehensive Problem
Formation:
Loan, capital share, FMV @1st day, addtl investments
Operations:
Trial Balance with incomplete data. Given working capital
Prior period errors, 3 years of operation w/ changes in P/L Distribution Plan.
1.Sales, COS, AE, Advertising, Sales Commission, Unearned Revenue, Accrued Revenue, Prepaid Expenses, Accrued Expenses, Accumulated Depreciation, Inventory. Table on Capital transactions.
P/L Distribution PLANS (all of them)
2.Beg, Withdrawals, Investment, Average capital.
P/L Distribution plan w/ interest on ending capital balance.
3.Bonus base variations (Bonus to 2 partners with different bases)
4.Prior period error. P/L distribution Plan
5. Bonus base variations (Bonus to 2 partners with different bases), Interest in excess of, in excess of residual profit, If net income after deducting the interest and salary allocations is greater than $20,000, Carnes receives a bonus of 5% of the original amount of net income.
Liquidation:
Admitted a limited partner