13. The partnership has the following accounting amounts: Sales 70,000 Interest paid to banks 2,000 Cost of goods sold 40,000 Partners' withdrawals 8,000 Operating expenses 10,000 Salary allocations to partners 13,000 The partnership net income (loss) is: A. 20,000 B. 18,000 C. 5,000 D. (3,000)

13. The partnership has the following accounting amounts: Sales 70,000 Interest paid to banks 2,000 Cost of goods sold 40,000 Partners' withdrawals 8,000 Operating expenses 10,000 Salary allocations to partners 13,000 The partnership net income (loss) is: A. 20,000 B. 18,000 C. 5,000 D. (3,000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A partnership agreement states that following: the partners shall participate in profits: partner 1 - 70%, partner 2 - 25% and partner 3 - 5%. if the partnership had net income for the year of $135,000, what would be partner's 2 share of the income? a. $33,750. b. $94,500. c. $100,000. d. $6,750.
6. A, B and C formed a partnership. The partnership agreement stipulates the following: Annual salary allowances of P100,000 for A and P20,000 for B. 10% interest on the beginning capital balance of C. The partners share in profits and losses on a 40:40:20 ratio. The partnership earned profit of P500,000. C's capital account had a beginning balance of P300,000. The difference between the amounts received by A and B is a. 160,000. c. 80,000. d. 60,000. b. 240,000.
The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000, liabilities 30000, Ali capital 50000 and Basil capital 20000. The income ration 3:2. The partnership was liquidated and non-cash assets were sold for 110000. The balance of cash after sales on non-cash assets will be - O a. 120000 O b. 140000 O c. 130000 Od 150000
n the year ended 31/12/2018 total income of Palestine co,20,000 if A partner received 5,000 annual salary and reaming divided equally between the two partners A and B so Finally the reamig profit should be allocated to partners will be 15,000 Select one: True False
Title A partnership firm has three partners : X, Y and Z with capitals as X : Rs. 20,000; Y : Rs. 10,000.. Description A partnership firm has three partners : X, Y and Z with capitals as X : Rs. 20,000; Y : Rs. 10,000 and Z Rs. 10,000. The creditors amounted to Rs. 20,000 and sundry assets to Rs. 60,000. In dissolution, the assets were realised as follows: 1st instalment Rs.20,000; 2nd instalment Rs. 20,000 and final realisation Rs. 10,000. The partners share profits and losses in the ratio of 3 : 2 : 1. Show the piece-meal distribution of the realisations on ---- (i) Surplus Capital Method; (ii) Maximum Loss Method. 31.52 Accounting for Dissolution of the Firm
A partnership has the following accounting amounts: (1) Sales $70,000 (2) Cost of Goods Sold = $40,000 (3) Operating Expenses = $10,000 (4) Salary allocations to partners = $13,000 (5) Interest paid to banks = $2,000 (6) Partners' withdrawals = $8,000 Partnership net income (loss) is ____. One says 18,000 other says (3,000) a. $20,000 b. $18,000 c. $5,000 d. $(3,000)
The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash Noncash assets a Maximum amount b Distributed $ 51,000 136,000 This partnership is being liquidated. Hendrick and Mitchum are each entitled to 30 percent of all profits and losses with the remaining 40 percent going to Redding. Hendrick Mitchum Liabilities Hendrick, capital Mitchum, capital Redding, capital a. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance? b. How should the $10,000 cash that is presently available in excess of liabilities be distributed? c. If the noncash assets are sold for a total of $51,000, what is the minimum amount of cash that Hendrick could receive? (Do not round intermediate calculations.) Redding C Minimum amount $ 41,000 91,000 71,000 (16,000)
26. The condensed balance sheet and profit and loss ratios of the partnership of Bean, Dean, and Jean are as follows: Cash P 1,125,000 Liabilities P 2,625,000 Rec. from Bean 375,000 Payable to Jean 500,000 Other assets 10,250,000 Bean, capital (40%) 3,750,000 Dean, capital (30%) 2,500,000 Jean, capital (30%) 2,375,000 Partners agree to liquidate and all non-cash assets were sold for P7,500,000. How much of the available cash will go to Bean? a. P3,750,000 b. P2,275,000 c. P2,650,000 d. P2,125,000
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A partnership has the following accounting amounts: Sales Cost of Goods Sold General and Administrative Expenses Distribution costs Interest paid to banks Salary allowances to partners Partners' withdrawals 150,000 80,000 17,000 52,000 23,000 12,000 18,000 Compute the Partnership's net income (loss). Encode as a negative amount if the answer is a loss.
The ABC partnership has three equal partners, A, B, and C, and the following balance sheet: Assets Partner's Capital Adj. Basis FMV Adj. Basis FMV Cash 60,000 60,000 A 70,000 80,000 Cap Asset 1 90,000 60,000 B 70,000 80,000 Cap Asset 2 40,000 60,000 C 70,000 80,000 Cap Asset 3 20,000 60,000 210,000 240,000 210,000 240,000 A receives capital asset #1 in an operating distribution. A has a one-ninth interest worth $20,000 in the partnership capital and profits after the distribution. (a) What results to A and the partnership if there is no §754 election? Reconstruct the balance sheet after the distribution. (b) What results to A and the partnership if the partnership has made a §754 election? Reconstruct the balance sheet after the distribution. (c) How should any basis adjustment be allocated among the partners?
developed in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…