Question
In: Accounting
Gillian and Emily invested $90,000 and $130,000, respectively, in a partnership they began one year ago....
Gillian and Emily invested $90,000 and $130,000,
respectively, in a partnership they began one year ago. Assuming
the partnership's profit was $250,000 for this year, calculate the
share of the profit each partner should receive under the following
assumptions.
(1) The partnership agreement specifies a salary
allowance of $50,000 to Gillian and $60,000 to Emily, and the
balance shared equally.
(2) The partnership agreement specifies a salary allowance of
$45,000 to Gillian and $60,000 to Emily, 10% interest on their
investments, and the balance shared equally.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Sharon and Nancy formed a partnership by making capital contributions of $130,000 and $195,000 respectively. The...
Sharon and Nancy formed a partnership by making capital
contributions of $130,000 and $195,000 respectively. The annual
partnership income of $230,000 is to be allocated assuming a salary
allowance of $40,000 to Sharon and $35,000 to Nancy; interest
allowances of 12% on their initial capital investments; and the
balance shared equally.
Prepare the entries to record the initial capital investments, the
allocation of net income, and close the partner's withdrawal
accounts assuming that Sharon withdrew $50,000 and Nancy withdrew
$45,000.
Ramer and Knox began a partnership by investing $82,000 and $123,000, respectively. During its first year,...
Ramer and Knox began a
partnership by investing $82,000 and $123,000, respectively.
During its first year,
the partnership earned $240,000. Prepare calculations showing how
the $240,000 income should be allocated to the partners under each
of the following three separate plans for sharing income and
loss:
1. The partners failed to agree on a method to
share income.
Ramer and Knox began a
partnership by investing $82,000 and $123,000, respectively.
During its first year,
the partnership earned $240,000. Prepare calculations...
On 1 January 2018, GEHAN and RAED entered into a partnership contributing $180,000 and $90,000 respectively...
On 1 January 2018, GEHAN and RAED entered into a partnership
contributing $180,000 and $90,000 respectively and sharing profits
in the ratio of 2:1. RAED is allowed a salary of $15,750 per year.
Interest on capital is allowed at 10% per annum. GEHAN is entitled
to receive a commission of $105,000. During the year, RAED withdrew
$18,000 and GEHAN $7,800; interest on the same being 12% per annum.
Profit in 2018 before the above-mentioned adjustments was
$75,000.
Instructions
You are...
Ramer and Knox began a partnership by investing $64,000 and $94,000, respectively. The partners agreed to...
Ramer and Knox began a partnership by investing $64,000 and
$94,000, respectively. The partners agreed to share net income and
loss by giving annual salary allowances of $52,000 to Ramer and
$41,600 to Knox, 10% interest allowances on their investments, and
any remaining balance shared equally. (Enter all allowances as
positive values. Enter losses as negative values.) Required: 1.
Determine each partner's share given a first-year net income of
$102,800. 2. Determine each partner's share given a first-year net
loss...
Ries, Bax, and Thomas invested $52,000, $68,000, and $76,000,respectively, in a partnership. During its first...
Ries, Bax, and Thomas invested $52,000, $68,000, and $76,000,
respectively, in a partnership. During its first calendar year, the
firm earned $355,800.Required:Prepare the entry to close the firm’s Income Summary account as of
its December 31 year-end and to allocate the $355,800 net income
under each of the following separate assumptions:3. The partners agreed to share income and loss
by providing annual salary allowances of $32,000 to Ries, $27,000
to Bax, and $39,000 to Thomas; granting 10% interest on the...
Ries, Bax, and Thomas invested $52,000, $68,000, and $76,000,respectively, in a partnership. During its first...
Ries, Bax, and Thomas invested $52,000, $68,000, and $76,000,
respectively, in a partnership. During its first calendar year, the
firm earned $355,800.Required:Prepare the entry to close the firm’s Income Summary account as of
its December 31 year-end and to allocate the $355,800 net income
under each of the following separate assumptions:2. The partners agreed to share income and loss in the ratio of their beginning capital investments. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.)
Tim and Tam respectively invested $55 000 and $45 000 to form T & T Partnership...
Tim and Tam respectively invested $55 000 and $45 000 to form T
& T Partnership on 1 January 2019. The partnership had a final
profit of $66 000 for the year ended 31 December 2019.
Required:
(1) By using Method 2 (fixed capital balances) procedures, prepare
the journal entries to close the Profit or Loss Summary account,
and then to distribute the profit to partners Tim and Tam under
each of the following assumptions:
(a) Tim and Tam agree...
Kara Ries, Tammy Bax, and Joe Thomas invested $42,000, $58,000, and $66,000, respectively, in a partnership....
Kara Ries, Tammy Bax, and Joe Thomas invested $42,000, $58,000,
and $66,000, respectively, in a partnership. During its first
calendar year, the firm earned $418,200.
Prepare the entry to close the firm’s Income Summary account as of
its December 31 year-end and to allocate the $418,200 net income to
the partners under each of the following separate assumptions:
The partners agreed to share income and loss in the ratio of
their beginning capital investments. (Do not round
intermediate calculations. Round...
Kim Ries, Tere Bax, and Josh Thomas invested $54,000, $70,000 and $78,000 respectively, in a partnership....
Kim Ries, Tere Bax, and Josh Thomas invested $54,000, $70,000
and $78,000 respectively, in a partnership. During its first
calendar year, the firm earned $392,400.
Prepare the entry to close the firm’s Income Summary account
as of its December 31 year-end and to allocate the $392,400 net
income to the partners under each of the following separate
assumptions:
(1) The partners have no agreement on the method of sharing
income and loss
(2) The partners agreed to share income and...
Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first...
Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000,
respectively, in a partnership. During its first calendar year, the
firm earned $367,200.
Required:
Prepare the entry to close the firm’s Income Summary account as of
its December 31 year-end and to allocate the $367,200 net income
under each of the following separate assumptions:
3. The partners agreed to share income and loss
by providing annual salary allowances of $33,000 to Ries, $28,000
to Bax, and $40,000 to Thomas; granting 10%...
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