**Income Distribution for Partners: Gonzalez and Van Horne****Allocation Guidelines:**1. Annual salary allowance to Gonzalez of $25,000.2. Interest of 5% on each partner’s capital balance on January 1.3. Any remaining net income divided to Gonzalez and Van Horne, 2:1.Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000.**Required:**Calculate the net income distribution for Gonzalez and Van Horne:- **Gonzalez:** - Annual Salary: $25,000 - 5% Interest on Capital Balance ($126,000): $6,300 - Remaining Net Income: Compute the distribution based on the 2:1 ratio with Van Horne.- **Van Horne:** - 5% Interest on Capital Balance ($189,000): $9,450 - Remaining Net Income: Compute the distribution based on the 2:1 ratio with Gonzalez.Fill in the allocated amounts for each partner below:- Gonzalez: ______________- Van Horne: ______________This structured outline serves to guide the allocation of net income following pre-determined rules, ensuring fair compensation based on agreements and contributions.

Partnership refers to an agreement where two or more people come together for a common goal. The…

1. Annual salary allowance to Gonzalez of $25,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Gonzalez and Van Horne, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: $ Van Horne:

1. Annual salary allowance to Gonzalez of $25,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Gonzalez and Van Horne, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: $ Van Horne:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Mr. Suner, Mr. Behman and Mr. Meuthosam are partners, who share profit in the ratio of 2:2:1. Following is the balance sheet as on March 31, 2020. Balance Sheet of Mr. Suneer, Mr. Rehman and Mr. Mouthosam as on March 31, 2020 Liabilities Amount (OMR) Assets Amount (OMR) Mr. Suneer's capital 5,000 Cash and Bank 2,500 Mr. Rehman's Capital 2,000 Stock 2,500 Mr. Mouthosam's capital 1,000 Furniture 1,000 Reserve fund 2,500 2,000 Debtors Creditors 2,000 Plant and 4,500 machinery 12,500 12,500 They decided to dissolve the business. The following amounts were realized. There was an unrecorded asset of Rs.350, which was taken over by Mr. Rehman at Rs.150. How much amount of unrecorded assets are recorded in the realization account? OMA 200 None of the listed choices OMR I50 OMA150 Creditors paid 2% less. How much amount of creditors are recorded in the credit side of realization account?
Ali had a P50,000 capital balance for eight months and a P65,000 balance for four months. Barry had a P38,000 capital balance for five months and a P50,000 balance for seven months. If the net income of the year is P80,000, the entry to show the distribution of income to each partner is: a. Ali, Capital Barry, Capital b. Income Summary Ali, Capital Barry, Capital C. оооо Income Summary Ali, Capital Barry, Capital d. Income Summary Ali, Capital Barry, Capital O A Income Summary B O C D 44,000 36,000 80,000 44,000 80,000 36,000 80,000 45,320 80,000 36,000 44,000 34,680
Required information [The following information applies to the questions displayed below.] Ries, Bax, and 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 under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your ans below. Appropriation General of profits Journal Allocate $249,000 net income by providing annual $66,000 to Ries, $56,000 to Bax, and $80,000 to interest on the partners' beginning capital investm remainder equally. Supporting Calculations Net income Salary allowances…
i need the answer quickly
What amount is due to G's estate on December 31?
ii.9
please answer number 5. thank you
87
Domestic
3.4 Vir and Housen are partners sharing profits in the ratio of 3:2. As per their agreement, each partner is allowed to withdraw P 30,000 annually. Both partners withdrew this amount during 200C.The net profit in 200C was P 120,000. REQUIRED: Show how the net profit will be divided if the withdrawals are considered as: a. Partners' drawings b. Partners' salaries
3.14 Cue and Peed entered into a partnership on March 1, 200A. They T agreed that Cue, the managing partner was to receive a salary 10 neallowance of P 24,000 per year and a bonus of 10% of the net profit after the salary allowance but before the bonus. The balance is to b e distributed in the ratio of their initial capital. Selected ledger accounts on December 31, 200A prior to adjustments showed the following balances: Salesgns 22ol bns P 300,000 ge gnisda o3,000 ollo) visoo 180,000 1sini s10 48,000 Sales Returns 290sw zunod ts Purchases 1 Operating Expenses bs la01Stni o1o 48,000 200,000 00020,000 1o g 2290x Cue Capital Cue Drawing Peed Capital 0 Peed Drawing Inventories at year-end were bns I 100,000 10,000 as follows: Office supplies, P 810 and merchandise, P 50,000. Prepaid insurance of 0P 1,200 and accrued expenses of P 400 are to be recognized. Depreciation of P 4,000 is to be provided. REQUIRED: Prepare the Statement of Partners ' Equity for the 10- month period ended December…
Two partners Tom and Jerry have the following details of their accounts for the year ended 31 December 2021. Capital accounts: Current accounts: Salaries: Drawings: Profit sharing ratio: Net profit before appropriation £100,000 £ Tom 8,000 3,000cr 10,000 25,000 3 £ Jerry 6,000 1,000 dr 30,000 30,000 1 Required: Prepare the relevant income statement and statement of financial position extracts.