After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of the Mitt & Ryan partnership is $28.210. The partnership agreement specifies that profits and losses will be shared using the following formula. 1. Allocate profit by a 5% Interest allowance on the partners' beginning capital balances. 2 Allocate salary allowances of $20,280 to Mitt and $14,690 to Ryan 3. Remaining profit (loss) is to be shared on a ratio of 8:5 At the beginning of the year, Mitt's capital account had a balance of $33.800 and Ryan's capital account had a balance of $35,100. Mitt withdrew $1.130 cash per month while Ryan withdrew $1,360 per month from the partnership. During the year, Mitt made an additional investment of $5,650 cash into the partnership.
After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of the Mitt & Ryan partnership is $28.210. The partnership agreement specifies that profits and losses will be shared using the following formula. 1. Allocate profit by a 5% Interest allowance on the partners' beginning capital balances. 2 Allocate salary allowances of $20,280 to Mitt and $14,690 to Ryan 3. Remaining profit (loss) is to be shared on a ratio of 8:5 At the beginning of the year, Mitt's capital account had a balance of $33.800 and Ryan's capital account had a balance of $35,100. Mitt withdrew $1.130 cash per month while Ryan withdrew $1,360 per month from the partnership. During the year, Mitt made an additional investment of $5,650 cash into the partnership.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of the Mitt & Ryan
partnership is $28.210. The partnership agreement specifies that profits and losses will be shared using the following
formula.
1. Allocate profit by a 5% interest allowance on the partners' beginning capital balances.
2 Allocate salary allowances of $20,280 to Mitt and $14,690 to Ryan.
3. Remaining profit (loss) is to be shared on a ratio of 8:5
At the beginning of the year, Mitt's capital account had a balance of $33,800 and Ryan's capital account had a balance
of $35,100. Mitt withdrew $1.130 cash per month while Ryan withdrew $1,360 per month from the partnership.
During the year, Mitt made an additional investment of $5,650 cash into the partnership.
Prepare a schedule to show how the profit or loss will be allocated to the two partners. (Enter negative
amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Profit
Interest allowance
Mitt
Ryan
Total
Profit remaining for allocation
Salary allowance
Mitt
Ryan
Total
Mitt
MITT & RYAN
Division of Profit
HOD DONO
Ryan
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