1 Book Problem 11-1A Methods of allocating partnership profit LO3 Jenkins, Willis, and Trent invested $276,000, $483,000, and $621,000, respectively, in a partnership. During its first year, the firm recorded profit of $657,000. Required: Prepare entries to close the firm's Income Summary account as of December 31 and to allocate the profit to the partners under each of the following assumptions: a. The partners did not produce any special agreement on the method of distributing profits. View transaction list Journal entry worksheet 1 Record to close income summary account. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit

1 Book Problem 11-1A Methods of allocating partnership profit LO3 Jenkins, Willis, and Trent invested $276,000, $483,000, and $621,000, respectively, in a partnership. During its first year, the firm recorded profit of $657,000. Required: Prepare entries to close the firm's Income Summary account as of December 31 and to allocate the profit to the partners under each of the following assumptions: a. The partners did not produce any special agreement on the method of distributing profits. View transaction list Journal entry worksheet 1 Record to close income summary account. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 12.1BPR

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Problem 11-5B Partnership entries, profit allocation, admission of a partnerLO2, 3, 4 CHECK FIGURES: c. Cr. Amrick: $259,860; Cr. Balas: $150,140; d. Dr Balas: $50,520 On July 1, 2022, Alleya Amrick and Breanne Balas formed a partnership to make crafts and sell them online. Contribution (at formation on July 1 a $43,000 note payable was taken by the partners to purchase added equipment) Profit sharing Amrick $100,000 cash $183,000 equipment Required 1. Prepare journal entries for the following dates: a. July 1, 2022 b. June 20, 2023 $153,000 salary allowance 10% of original capital investments Balance 40% Balas $183,000 cash $140,000 equipment 10% of original capital investments Balance 60% $103,000 Cash withdrawal June 20, 2023 Net Income during the year was $410,000 and was in the Income Summary account. On July 1, 2023 Calla Cameron invested $123,000 and was admitted to the partnership for a 20% interest in equity
CHAPTER 11 Partnerships 204 S Contribution Profit sharing Balance shared equally Cash withdrawal during year Exercise 11-3 Journalizing partnership entries LO2, 3 CHECK FIGURES: 1. Share of profit: Regal: $135,250; Merle: $41,750 On April 1, 2023, Harry Regal and Meghan Merle formed a partnership in Alberta, renting reusable m boxes. Regal 77,000 то 97,000 cash 107,000 salary allowance 15% of original capital investments reioan Exercise 11-4 Journalizing partnership entries LO2, 3 CHECK FIGURES: 1. Share of profit: Williams: $116,000; Xie: $44,000 On February 1 2023 Tessa Williams and Audron, v. C Unit x Price pe 62,000 Replaced x Price per Mer Estimated 137,000 land 50,000 building 15% of original capital investments Accruc Replac Estin Net Income during the year was $177,000 and was in the Income Summary account. Required 1. Present general journal entries to record the initial capital investments of the partners, their cash wit drawals, and the December 31 closing of the Income…
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Cap 12 eBook Show Me How Recording Partner's Original Investment Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $18,920; accounts receivable with a face amount of $198,660 and an allowance for doubtful accounts of $7,170; inventory with a cost of $99,540; and equipment with a cost of $139,330 and accumulated depreciation of $90,560. The partners agree that $8,740 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $14,900 is a reasonable allowance for the uncollectibility of the remaining accounts, that the inventory is to be recorded at the current market price of $93,570, and that the equipment is to be valued at $61,450. Journalize the partnership's entry to record Kaiser's investment. If an amount box does not require an entry, leave it blank.
Exercise 12-6 (Algo) Income allocation in a partnership LO P2 Ramer and Knox began a partnership by investing $71,000 and $101,000, respectively. The partners agreed to share net income and loss by giving annual salary allowances of $55,500 to Ramer and $44,400 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally. Note: Enter all allowances as positive values. Enter losses as negative values. ces Required: 1. Determine each partner's share given a first-year net income of $109,800 2. Determine each partner's share given a first-year net loss of $27,800. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine each partner's share given a first-year net loss of $27,800. Allocation of Partnership Income Ramer Knox Net Income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners < Required 1…
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P 16-8 Recording new partner investment—Various situations The capital accounts of the Ann, Bob, and Car partnership at December 31, 2016, together with profit- and loss-sharing ratios, are as follows: Ann (25%) $75,000 Bob (25%) 100,000 Car (50%) 125,000 The partners agree to admit Dar into the partnership. Required Prepare the journal entry or entries to admit Dar into the partnership and calculate the partners’ capital balances immediately after his admission under each of the following independent assumptions: Car sells half of her interest to Dar for $90,000, and the partners agree to admit Dar into the partnership. Dar invests $75,000 cash in the partnership for a 25 percent interest in the partnership capital and profits, and partnership assets are revalued. Dar invests $80,000 cash in the partnership for a 20 percent interest in the capital and profits, and partnership assets are revalued. Dar invests $90,000 cash in the partnership for a 30%…
Problem 7 Admission by Investment of Assets (Incentive Activity) Partners Pilapil and Pastor sell electronic equipment and supplies. They wish to expand their computer lines and decided to admit Generales to the partnership. Pilapil’s capital is Php 2,000,000, Pastor’s capital is Php 1,600,000, and they share income in the ratio of 3:2, respectively. Required: Prepare the journal entries to record the admission of Generales for each of the following independent situations: Generales directly purchased half of Pastor’s investment in the partnership for Php 900,000. Generales invested Php 1,100,000 for a one-fourth interest. Goodwill will be recognized. Generales invested Php 800,000 for a one-fifth interest in the total capital of Php 4,400,000. Generales invested Php 1,000,000 for one-fifth interest. Goodwill is to be recognized.
Homework Activity 1 A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000, B 1500, C 1000 Interest on drawings: A 200, B 150, C 100 Salary to Partners A 500 B 700 C 600 Commission to Partners A 200 B 300 C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.
Chapter 1-Accountring for Partnership Formation & Operation On March 1, of the current year, PP and QQ decide to combine their businesses and form a partnership. Their balance sheets on March 1, before adjustments. MULTIPLE CHOICE (PROBLEMS) QQ PP 9,000.00 18,500.00 30,000.00 30,000.00 11,500.00 6,375.00 105,375.00 45,750.00 59,625.00 105,375.00 3,750.00 13,500.00 19,500.00 9,000.00 2,750.00 3,000.00 51,500.00 18,000.00 33,500.00 51,500.00 showed the following: P Cash Accounts Receivable Inventories Furniture and Fixtures (net) Office Equipment (net) Prepaid Expenses Total P. Accounts Payable Capital Total P They agreed to have the following items recorded in their books: a. Provide 2% allowance for doubtful accounts. b. PP's furniture and fixtures should be P31,000, while QQ's office equipment is under-depreciated by P250. c. Rent expense incurred previously by PP was not yet recorded amounting to P1,000, while salary expense incurred by QQ was not also recorded amounting to P800. d.…
Required information Important Notel Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. The following information applies to the questions displayed below] 5 Ramer and Knox began a partnership by investing $68,000 and $102,000, respectively. During its first year, the partnership earned $205,000. Prepare calculations showing how the $205,000 income is allocated under each separate plan for sharing income and loss. O Important Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. 2. The partners agreed to share income and loss in proportion to their initial investments. Net Income is $205,000. (Do not round Intermediate calculations.) A $68.000/5170 000 Fraction to Allocate Ramers Share Fraction to Allocate Knox's Share of Total Income Allocated Show Transcribed Text I