Inventory 860000 081 69660 2 Cole Company has the following 2014 financial data

# Inventory 860000 081 69660 2 cole company has the

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Inventory = 860,000 × .081 = \$69,660 2. Cole Company has the following 2014 financial data: Consolidated revenue per income statement \$800,000 Intersegment sales 200,000 Intersegment transfers 100,000 Combined revenues of all segments \$1,100,000 Cole Company should add segments if: 75% of \$800,000 = \$600,000 leave out intersegment sales and transfers.
Name: ___Henry Franco ___________ Date: ____10/10/15 ___________ 3. Alfred and Barne share profits and losses in a ratio of 2:3, respectively, after salary allowances, interest allowances and bonus allocations. Alfred and Barne receive salary allowances of \$30,000 and \$60,000, respectively, and both partners receive 10% interest based upon the balance in their capital accounts on January 1. Partners' drawings are not used in determining the average capital balances. Total net income for 2014 is \$180,000. If net income after deducting the interest and salary allocations is more than \$60,000, Barne receives a bonus of 5% of the original amount of net income. Alfred Barne January 1 capital balances \$ 600,000 \$ 900,000 Yearly drawings (\$3,000 a month) 36,000 36,000 What is the total amount for the allocation of interest, salary, and bonus, and how much over-allocation is present? NI \$180,000 10% interest (-600,000) -60,000 10% interest (-900,000) -90,000 Salary -30,000 Salary -60,000 Remainder to divide (Loss) -60,000 Alfred Barne January 1 capital balances \$ 600,000 \$ 900,000 Yearly drawings (\$3,000 a month) -36,000 -36,000 Loss (2:3 split) (-\$60,000/5= -\$12,000) -24,000 -36,000 December 31 capital balance 540,000 828,000 4. You will need to classify the following into the various classes of payments in a Chapter 7 bankruptcy. 1. E. Claims with a valid lien against assets of the entity. 2. G. Administrative expenses of the estate, such as trustee fees. 3. B. Legal fees incurred after petitioning the court for Chapter 7. 4. A. Claims for wages that are less than \$11,725 per individual, earned within 90 days of filing petition for bankruptcy. 5. F. Claim by employee for commissions earned in 90 days prior to filing bankruptcy petition, for the portion in excess of \$11,725. 6. D. Claims for employee benefit plan contributions that are less than \$11,725 per individual and relating to services rendered within 180 days of bankruptcy filing 7. J. Taxes owed to a government unit.
Name: ___Henry Franco ___________ Date: ____10/10/15 ___________ 8. C. Claim by the accounting firm for the audit fee from the prior year-end audit completed two months prior to the bankruptcy filing. 9. H. Claim by a supplier for goods delivered on account. 10. I. Interest on unsecured claims.

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