Question
In: Accounting
Saul Goodman, Jesse Pinkman, and Walter White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively.
Saul Goodman, Jesse Pinkman, and Walter White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partner’s beginning capital balance for the year; (2) annual compensation of $15,000 to Pinkman; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Goodman; (b) 40% for Pinkman; and (c) 40% for Mr. White. Net income was $200,000 in 2020 and $240,000 in 2021. Each partner withdrew $1,500 for personal use every month during 2020 and 2021. What was Pinkman’s total share of net income for 2021?
A) $62,160.
B) $101,310.
C) $135,150.
D) $96,000.
E) $111,000.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Saul Goodman, Jesse Pinkman, and Walter White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively.
Saul Goodman, Jesse Pinkman, and Walter White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partner’s beginning capital balance for the year; (2) annual compensation of $15,000 to Pinkman; and (3) the remainder of the income or loss to be split among the partners in the following...
Saul Goodman, Jesse Pinkman, and Walter White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively.
Saul Goodman, Jesse Pinkman, and Walter White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partner’s beginning capital balance for the year; (2) annual compensation of $15,000 to Pinkman; and (3) the remainder of the income or loss to be split among the partners in...
Farmer and Taylor formed a partnership with capital contributions of $205,000 and $255,000, respectively. Their partnership...
Farmer and Taylor formed a partnership with capital
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Assuming net loss for the current year is $16,000, the journal
entry to allocate the net loss is:
Debit Taylor, Capital, $44,000; Credit Income Summary, $16,000;
Credit Farmer, Capital, $28,000.
Debit Income Summary, $16,000; Debit Farmer, Capital, $28,000;
Credit Taylor, Capital, $44,000.
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1. Farmer and Taylor formed a partnership with capital contributions of $280,000 and $330,000, respectively. Their...
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contributions of $280,000 and $330,000, respectively. Their
partnership agreement calls for Farmer to receive a $86,000 per
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Assuming net income for the current year is $231,000, the journal
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Sharon and Nancy formed a partnership by making capital
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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
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McGill and Smyth have capital balances on January 1 of $40,000
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assuming net income is $65,000. (If an amount reduces
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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...
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