Question

In: Accounting

QS 11-4 Partnership profit allocation LO3 Bill Ace and Dennis Bud are partners in an urban...

QS 11-4 Partnership profit allocation LO3

Bill Ace and Dennis Bud are partners in an urban restaurant called Salt. Profit for the year ended March 31, 2017, is $120,000.

  1. How much profit should be allocated to each partner assuming there is no partnership agreement?
  2. Prepare the entry to allocate the profit.
  3. Prepare the entry to allocate the $120,000 assuming it is a loss.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Problem 11-6A Partnership entries, profit allocation, admission of a partner LO2, 3, 4 On June 1,...
Problem 11-6A Partnership entries, profit allocation, admission of a partner LO2, 3, 4 On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $296,000 cash and $392,000 of equipment, respectively. The partnership also assumed responsibility for a $56,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $166,000, both are to receive an annual interest allowance of...
The Ace and Deuce partnership has been created to operate a law firm. The partners are...
The Ace and Deuce partnership has been created to operate a law firm. The partners are attempting to devise a fair system to allocate profits and losses. Ace plans to work more billable hours each year than Deuce. However, Deuce has more experience and can charge a higher hourly rate. Ace expects to invest more money in the business than Deuce. REQUIRED Build a spreadsheet that can be used to allocate profits and losses to these two partners each year....
The Ace and Deuce partnership has been created to operate a law firm. The partners are...
The Ace and Deuce partnership has been created to operate a law firm. The partners are attempting to devise a fair system to allocate profits and losses. Ace plans to work more billable hours each year than Deuce. However, Deuce has more experience and can charge a higher hourly rate. Ace expects to invest more money in the business than Deuce. Required Build a spreadsheet that can be used to allocate profits and losses to these two partners each year....
Partnership Income Allocation Whitman and Greene are partners in a real estate venture. At January 1,...
Partnership Income Allocation Whitman and Greene are partners in a real estate venture. At January 1, 2020, their respective capital balances were $200,000 and $245,000. Their partnership agreement provides that Whitman is to receive a guaranteed salary of $100,000, and that remaining profits after the salary are to be shared in a 2:3 ratio. Partnership operations for the year 2020 resulted in income of $75,000, before distributions to partners. Whitman’s salary is paid in cash during the year, but there...
Problem 3-11 T-Account Analysis of Cost Flows [LO3-2, LO3-3, LO3-4] Selected T-accounts of Moore Company are...
Problem 3-11 T-Account Analysis of Cost Flows [LO3-2, LO3-3, LO3-4] Selected T-accounts of Moore Company are given below for the just completed year: Raw Materials Bal. 1/1 23,000 Credits ? Debits 136,000 Bal. 12/31 33,000 Manufacturing Overhead Debits 204,720 Credits ? Work in Process Bal. 1/1 28,000 Credits 494,000 Direct materials 98,000 Direct labor 174,000 Overhead 222,720 Bal. 12/31 ? Factory Wages Payable Debits 201,000 Bal. 1/1 13,000 Credits 196,000 Bal. 12/31 8,000 Finished Goods Bal. 1/1 48,000 Credits ?...
A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are...
A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses):             Cash $ 33,000 Liabilities $ 50,000 Other assets   100,000 Playa, capital (40%)   24,000       Bahia, capital (30%)   29,000       Arco, capital (30%)   30,000 Total $ 133,000 Total $ 133,000 During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are...
Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following...
Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following information applies to the questions displayed below.] Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $71,100, $276,500, and $442,400, respectively. They predict annual partnership net income of $471,000 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of...
4. C and D are equal partners in the CD partnership. C starts the year with...
4. C and D are equal partners in the CD partnership. C starts the year with an adjusted basis of $400 in the partnership while D starts the year with an adjusted basis of $700. (a) The partnership distributes cash of$ 500 to C and land, adjusted basis $300 fair market value $500 to D. The partnership thereafter continues operations. What consequences? (b) Same as (a) except that the land had an adjusted basis of $800 (fair market value still...
Required information Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2...
Required information Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following information applies to the questions displayed below.] Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $70,200, $273,000, and $436,800, respectively. They predict annual partnership net income of $466,500 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary...
Required information Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2...
Required information Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following information applies to the questions displayed below.] Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $77,400, $301,000, and $481,600, respectively. They predict annual partnership net income of $508,500 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT