Question
In: Accounting
McGill and Smyth have capital balances on January 1 of $48,000 and $30,000, respectively. The partnership...
McGill and Smyth have capital balances on January 1 of $48,000 and $30,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $18,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth.
(1) Prepare a schedule showing the distribution of net income, assuming net income is $71,000
(2) Prepare a schedule showing the distribution of net income, assuming net income is $26,000.
(3)Journalize the allocation of net income in each of the situations above
Solutions
ekkarill92 answered 2 years agoRelated Solutions
McGill and Smyth have capital balances on January 1 of $40,000 and $30,000, respectively. The partnership...
McGill and Smyth have capital balances on January 1 of $40,000
and $30,000, respectively. The partnership income-sharing agreement
provides for (1) annual salaries of $15,000 for McGill and $10,000
for Smyth, (2) interest at 10% on beginning capital balances, and
(3) remaining income or loss to be shared 60% by McGill and 40% by
Smyth.
Prepare a schedule showing the distribution of net income,
assuming net income is $65,000. (If an amount reduces
the account balance then enter with a...
McGill and Smyth have capital balances on January 1 of $46,000 and $38,000, respectively. The partnership...
McGill and Smyth have capital balances on January 1 of $46,000
and $38,000, respectively. The partnership income-sharing agreement
provides for (1) annual salaries of $25,000 for McGill and $20,000
for Smyth, (2) interest at 10% on beginning capital balances, and
(3) remaining income or loss to be shared 70% by McGill and 30% by
Smyth.
(1) Prepare a schedule showing the distribution
of net income, assuming net income is $79,000. (If an
amount reduces the account balance then enter with...
Tamer, Lune and Nazra have a partnership. Their capital balances are $180,000, $260,000 and $300,000, respectively....
Tamer, Lune and Nazra have a partnership. Their capital balances
are $180,000, $260,000 and $300,000, respectively. They share
profits and losses 25%, 35% and 40%, respectively. Rana wants to
become a partner with a 10 percent share in partnership capital
with a $120,000 cash contribution to the partnership. The fair
market value for the partner is equal to book values Required: 1-
Calculate Tamer, Lune and Nazra and Rana ending capital balances
under the Bonus Method and Goodwill Method. 2-...
Kuzma, Folkert and Tucker are partners with capital account balances of $30,000. $75,000, and $45,000, respectively....
Kuzma, Folkert and Tucker are partners with capital account
balances of $30,000. $75,000, and $45,000, respectively. Income and
losses are divided in a 4:4:2 ratio. When Tucker decided to
withdraw, Tucker was then given $15,000 cash and a note for $40,000
for his withdrawal from the partnership.
Using the Bonus Method, prepare the journal entry to record
Tucker's withdrawal.
Problem 2
Dave, Allen and Matt share profits and losses in the ratio of
50:30:20. Allen withdrew from the partnership December...
Sharp and Townson had capital balances of $80,000 and $150,000, respectively on January 1, 2014 of...
Sharp and Townson had capital balances of $80,000 and $150,000,
respectively on January 1, 2014 of the current year. On May 8,
Sharp invested an additional $20,000 in the partnership (already
entered). During the year, Sharp and Townson withdrew $35,000 and
$55,000, respectively (Already entered). At the end of the year,
there was $500,000 balance in the 'Revenue' account and $380,000 in
the 'Expenses' account. Sharp and Townson have agreed to split on a
2:1 basis, respectively. (xx.xx%)
1. Journalize...
Carpenter, Kneller, and Hartley are partners. Their Capital account balances were $35,000, $30,000, and $24,000, respectively,...
Carpenter, Kneller, and Hartley are partners.
Their Capital account balances were $35,000, $30,000, and
$24,000, respectively, at the beginning of the current fiscal
year.
The partnership agreement provides for an allowance of interest
at the rate of 6% on the capital balances at the beginning of the
year, and salary allowances of $8,000, $11,000, and $12,000,
respectively.
The remaining partnership net income is to be divided 371/2% /
371/2% / 25%.
1. If the net income for that year was...
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $...
The Prince-Robbins partnership has the following capital account
balances on January 1, 2018:
Prince, Capital
$
160,000
Robbins, Capital
150,000
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 $91,000 cash for a 20
percent interest in the partnership. This transaction is recorded
by the goodwill method. After this transaction,...
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $...
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,...
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $...
The Prince-Robbins partnership has the following capital account
balances on January 1, 2018:
Prince,
Capital
$
110,000
Robbins,
Capital
100,000
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,...
The Prince-Robbins partnership has the following capital account balances on January 1, 2018: Prince, Capital $...
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,...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You have been hired as a capital budgeting analyst by Advent Sports, a sporting goods firm...
- DESCRIBE WHAT HAPPENS WHEN WE BECOME CONSCIOUS OF SOMETHING. WHAT HAS TO HAPPEN FOR CONSCIOUS AWARENESS...
- 3) You are rolling a 12 sided die 8 times. a) What is the size for...
- explain the difference between quantitative and qualitative research strategies. Provide an example of a crime based...
- use postorder and inorder tree traversals to make preorder traversal. #!/usr/bin/env python3 # encoding: UTF-8 """Turning...
- 1. Write an if-else statement to describe an object. Print "Balloon" if isBalloon is true and...
- An investor is considering purchasing a Treasury bond with a 20 year maturity, an 8% coupon...
ADVERTISEMENT