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 (a) 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 JUD TODO Ryan

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 (a) 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 JUD TODO Ryan

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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