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.)

2. The partners agreed to share income and loss in the ratio of their beginning capital investments. (Do not round intermedia Complete this question by entering your answers in the tabs below. Appropriati... of profits General Journal Prepare the entr

Solutions

Expert Solution

Answer

* [1]

	% of Total equity	Income Summary	Allocated Income to Capital
Ries	27%	$355,800	$94,396
Bax	35%	$355,800	$123,441
Thomas	39%	$355,800	$137,963

--Working

	% of Total equity
Ries	=52000/(52000+68000+76000)
Bax	=68000/(52000+68000+76000)
Thomas	=76000/(52000+68000+76000)

[2]

Date	General Journal	Debit	Credit
31-Dec	Income Summary	$355,800
	Ries, Capital		$94,396
	Bax, Capital		$123,441
	Thomas, Capital		$137,963

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

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 $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%...

Ries. Bax, and Thomas invested $80,000, $112.000, and $128,000, respectively

Ries. Bax, and Thomas invested $80,000, $112.000, and $128,000, respectively, in a partnership. Dans its first calendar year, the firm earned $249,000. Required Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to locate the $249,000 net income under each of the following separate assumptions, 1. The partners did not agree on a plan and therefore share income equally. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments, 3....

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...

Kara Ries, Tammy Bax, and Joe Thomas invested $26,000, $42,000, and $50,000, respectively, in a partnership....

Kara Ries, Tammy Bax, and Joe Thomas invested $26,000, $42,000, and $50,000, respectively, in a partnership. During its first calendar year, the firm earned $359,700. Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $359,700 net income to the partners under each of the following separate assumptions:

Kara Ries, Tammy Bax, and Joe Thomas invested $80,000, $112,000, and $128,000

Problem 12-3A Allocating partnership income P2 Kara Ries, Tammy Bax, and Joe Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 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...

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...

Prior to liquidating their partnership, Jolly and Bain had capital accounts of $18,000 and $68,000, respectively....

Prior to liquidating their partnership, Jolly and Bain had capital accounts of $18,000 and $68,000, respectively. The partnership assets were sold for $34,000. The partnership had no liabilities. Jolly and Bain share income and losses equally. Required: a. Determine the amount of Jolly's deficiency. $ b. Determine the amount distributed to Bain, assuming Jolly is unable to satisfy the deficiency.

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...

Subjects