Assume the partnership income-sharing agreement calls for income to be divided with a salary of $35,000 to Coburn and $30,000 to Webb, interest of 11% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Assume the partnership income-sharing agreement calls for income to be divided with a salary of $35,000 to Coburn and $30,000 to Webb, interest of 11% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 2BCRQ

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Coburn (beginning capital, $56,000) and Webb (beginning capital $92,000) are partners. During 2022, the partnership earned net income of $69,000, and Coburn made drawings of $17,000 while Webb made drawings of $26,000. Assume the partnership income-sharing agreement calls for income to be divided with a salary of $37,000 to Coburn and $32,000 to Webb, interest of 12% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to res the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Income Summary 69000 Coburn, Capital 34840 34160 Webb, Capital Compute the partners' ending capital balances under the assumption in part (c) above. Ending capital Coburn Webb 34840
Coburn (beginning capital, $56,000) and Webb (beginning capital $92,000) are partners. During 2022, the partnership earned net income of $69,000, and Coburn made drawings of $17,000 while Webb made drawings of $26,000. Assume the partnership income-sharing agreement calls for income to be divided with a salary of $37,000 to Coburn and $32,000 to Webb, interest of 12% on beginning capital, and the remainder divided 50%–50%. Prepare the journal entry to record the allocation of net income.
Ehrlich (beginning capital, $110,000) and Haar (beginning capital $85,000) are partners. During 2022 the partnership earned net income of $60,000. Ehrlich made drawings of $25,000 while Haar made drawings of $10,000. Instructions Assume the partnership income-sharing agreement calls for income to be divided with a salary of $22,000 to Ehrlich and $25,000 to Haar, interest of 10% on beginning capital, and the remainder divided 70%-30%. Prepare a schedule of the income allocation to each partner. Prepare the journal entry to record the allocation of net income. Compute Ehrlich's ending capital balance
At September 30, 2021, C. Saber and J. Wong, the two partners of City Landscaping, had capital account balances of $25,000 each. D. Walker joined the partnership on September 30, 2021 and received a 1/3 interest in the partnership in exchange for a capital contribution of $40,000. For the year ended September 30, 2022, City Landscaping had profit of $126,000, which is allocated equally to the three partners. Withdrawals during the year were $18,000 each by Saber and Wong, and $14,000 by Walker. Instructions a) Record the transaction on September 30, 2021 admitting Walker into the partnership. b) Calculate the balance of each partner's capital account after the transaction. c) Prepare the statement of partners' equity for the year ended September 20, 2022.
Coburn (beginning capital, $60,000) and Webb (beginning capital $90,000) are partners. During 2020, the partnership earned net income of $80,000, and Coburn made drawings of $18,000 while Webb made drawings of $24,000. (Assume the partnership income-sharing agreement calls for income to be divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income) What are the account titles and explanations? What is debit? What is credit?
Finnegan and Healey form a partnership on January 1, 2024, contributing $60,000 and $19,000, respectively. The partnership had net income of $160,500. Based on the partnership agreement, Finnegan's share of net income was $95,500 and Healey's share was $65,000. Finnegan and Healey each withdrew cash of $25,000 for personal use during the year. Read the requirements. ..... Requirement 1. Journalize the entry to close net income to the partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Requirements 1. Journalize the entry to close net income to the partners. 2. Journalize closing the partners' withdrawal accounts. Explanations are not required. 3. Calculate the balances in each partners' capital account after allocation of net income and partners' withdrawals of cash. (Assume the partnership's accounting year began on January 1, 2024, and ended on December 31, 2024.) Print Done
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Goodman, Pinkman, and White formed a partnership on January 1, 2023, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With respect to the division of income, they agreed to the following: interest of an amount equal to 10% of the partner’s beginning capital balance for the year; annual compensation of $15,000 to Pinkman; and the remainder of the income or loss to be split among the partners in the following percentages: 20% for Goodman; 40% for Pinkman; and 40% for White. Net income was $200,000 in 2023 and $240,000 in 2024. Each partner withdrew $1,500 for personal use every month during 2023 and 2024. What was the amount of interest attributed to Pinkman in the income distribution for 2024?
Goodman, Pinkman, and White formed a partnership on January 1, 2023, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With respect to the division of income, they agreed to the following: interest of an amount equal to 10% of the partner’s beginning capital balance for the year; annual compensation of $15,000 to Pinkman; and the remainder of the income or loss to be split among the partners in the following percentages: 20% for Goodman; 40% for Pinkman; and 40% for White. Net income was $200,000 in 2023 and $240,000 in 2024. Each partner withdrew $1,500 for personal use every month during 2023 and 2024. What was Pinkman’s total share of net income for 2023?
Coburn (beginning capital, $60,000) and Webb (beginning capital $90,000) are partners. During 2020, the partnership earned net income of $80,000, and Coburn made drawings of $18,000 while Webb made drawings of $24,000. Instructions: a. Assume the partnership income-sharing agreement calls for income to be divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income. b. Assume the partnership income-sharing agreement calls for income to be divided with a salary of $30,000 to Coburn and $25,000 to Webb, with the remainder divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income. c. Assume the partnership income-sharing agreement calls for income to be divided with a salary of $40,000 to Coburn and $35,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%–50%. 1. Prepare the journal entry to record the allocation of net income. 2. Prepare the entries to close…