Assuming that the net income is P50,000 and that each partner withdraws the maximum amount allowed, what is the balance in Cartwright’s capital account at the end of that year?A. P 105,800B. P 106,200C. P 106,900D. P 107,400 A partnership begins its first year with the following capital balances:Arthur, capitalBaxter, capitalCartwright, capitalP 60,00080,000100,000The articles of partnership stipulate that profits and losses be assigned in the following manner:Each partner is allocated interest equal to 10 percent of the beginning capital balance.Baxter is allocated compensation of P20,000 per year.Any remaining profits and losses are allocated on a 3:3:4 basis, respectively.Each partner is allowed to withdraw up to P5,000 cash per year.

The partnership represents the business form that is conducted by two or more partners and shares…

Assuming that the net income is P50,000 and that each partner withdraws the maximum amount allowed, what is the balance in Cartwright’s capital account at the end of that year? A. P 105,800 B. P 106,200

Assuming that the net income is P50,000 and that each partner withdraws the maximum amount allowed, what is the balance in Cartwright’s capital account at the end of that year? A. P 105,800 B. P 106,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Emerson and Dakota formed a partnership dividing income as follows: 1. Annual salary allowance to…

A: Partnership Partnership is an organizational form where two individuals mutually agree to share the…

Q: Prepare necessary adjusting entries at December 31, 2020 to record the admiss partner D and the…

Q: Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of…

A: Partnership accounting involves tracking and managing financial transactions within a business owned…

Q: The net income of the Jason and Browning partnership is $445000. The partnership agreement specifies…

A: Partnership is a contract or arrangement between two or more than two persons, in which they invest…

Q: Emerson and Dakota formed a partnership dividing income as follows: Annual salary allowance to…

A: Introduction:- A partnership is an agreement between two parties, known as business partners, to…

Q: Abby and Bailey are partners

A: Partnership is a type of business where two or more partners are agreed to carry a business together…

Q: Required 1 Prepare year-end adjusting entries. No descriptions are necessary. 2 Allocate partnership…

A: (Note :— “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: d. Using the operating results, what are Slicenhook's ordinary income and separately stated items…

A: Solution:-The inquiry involves establishing the typical earnings of the Slicenhook Partnership and…

Q: PROBLEM C and D are partners who share income and losses equally. C has an outside basis of $5,000…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of…

A: Abby capital = $66,800 Abby’s ½ interest = $66,800 * ½ = $33,400

Q: Marc, Jacobs and Benetton share profits in the ratio 2:3:5. On September 30, Partner Benetton opted…

A: In the given question, Benetton has opted to Retire. His capital balance on retirement was P 70,000.…

Q: Allegan, Capital Berrien, Capital Kent, Capital According to the articles of partnership, all…

A: Lets understand the basics.Partnership is an agreement between two or more person who works together…

Q: merson and Dakota formed a partnership dividing income as follows: Annual salary allowance to…

A: Net income: The bottom line of income statement which is the result of excess of earnings from…

Q: Emerson and Dakota formed a partnership dividing income as follows: Annual salary allowance to…

A: Introduction:- A partnership is an agreement between two parties, known as business partners, to…

Q: Goodman, Pinkman, and White formed a partnership on January 1, 2020, and made capital contributions…

A: Lets understand the basics.Partnership is an agreement between two or more people who work together…

Q: divided equally. 00 and $133,600, respectively in their Jar be distributed to Emmett?

A: To calculate Emmett share in the net income, Salary and interest must be distributed . The total of…

Q: Lewis, Zapata, and Fowler share equally in net income and net losses. After the partnership sells…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: The E.N.D. partnership has the following capital balances as of the end of the current year:…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Emmett and Sierra formed a partnership dividing income as follows: 1. Annual salary allowance to…

A: Net income is the amount of money earned by the entity after deducting the expenses from the…

Q: The A and B partnership agreement stipulates that profits and losses will be shared equally after…

A: The partnership is an agreement between two or more partners where partners agree to work together…

Q: Emerson and Dakota formed a partnership dividing income as follows: 1. Annual salary allowance to…

A: In partnership, the net income should be distributed to partners in the profit sharing ratio. In the…

Q: X, Y and Z are in partnership. X receives a salary of $14,000. If the profits for the year are…

A: Given the following information: Salary of X: $14,000 Profit for the year: $80,000 Partners share…

Q: Partners John and Dickens have capital balances in a partnership of $155000 and $233000,…

A: Lets understand the basics.Partnership is the association of persons who carry out business and…

Question

Assuming that the net income is P50,000 and that each partner withdraws the maximum amount allowed, what is the balance in Cartwright’s capital account at the end of that year?
A. P 105,800

B. P 106,200

C. P 106,900

D. P 107,400

A partnership begins its first year with the following capital balances:
Arthur, capital
Baxter, capital
Cartwright, capital
P 60,000
80,000
100,000
The articles of partnership stipulate that profits and losses be assigned in the following manner:
Each partner is allocated interest equal to 10 percent of the beginning capital balance.
Baxter is allocated compensation of P20,000 per year.
Any remaining profits and losses are allocated on a 3:3:4 basis, respectively.
Each partner is allowed to withdraw up to P5,000 cash per year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie Gomez Total capital Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $270,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $350,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your Intermediate calculations. Round your final answers to the nearest dollar amounts.) a. Pineda Adams $ 300,000 260,000 230,000 210,000 $1,000,000 Gomez b. Adams Fergie Gomez Capital Balance
The net income of the Chris and Browning partnership is $440000. The partnership agreement specifies that Chris and Brow a salary allowance of $125000 and $171000, respectively. The partnership agreement also specifies an interest allowrance of capital balances at the beginning of the year. Each partner had a beginning capital balance of $ 294000. Any remaining net inc net loss is shared equally. What is Chris's share of the $ 440000 net income? $197000 $154400 $167600 $114600 Attempts: 0 of 1 used
Matthews, Williams, and Shen share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Matthews, $28,000 Cr.; Williams, $62,500 Cr.; Shen, $18,000 Dr. a. What term is applied to the debit balance in Shen’s capital account? b. What is the amount of cash on hand? c. Journalize the transaction that must take place for Matthews and Williams to receive cash in the liquidation process equal to their capital account balances. Liquidating partnerships— capital deficiency
Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $67,300 and $31,800, respectively. With the consent of Bailey, Sandra buys one-half of Abby's interest for $43,200. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership? a. $31,800 b. $33,650 c. $43,200 d. $67,300
Douglas pays Selena $45,700 for her 25% interest in a partnership with net assets of $127,900. Following this transaction, Douglas's capital account should have a credit balance of a. $45,700 b. $127,900 c. $11,425 d. $31,975
6
For Industry H, determine each partner's share of income assuming the partners agree to share income by giving a $67,700 per year salary allowance to Price, a $126,100 per year salary allowance to Waterhouse, a $113,700 per year salary allowance to Coopers, a 15% interest on their initial capital investments, and the remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Important! Be sure to click the correct Industry at the top of the dashboard. Net income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of each partner Initial partnership investments Net income Allocation of Partnership Income Price Total net income Total 0 Waterhouse $ $ PRICE, WATERHOUSE, AND COOPERS Statement of Partners' Equity For Year Ended December 31 Price Coopers 0 0 Waterhouse 0 0 0 $ For Industry H, prepare a statement of partners' equity for the…
Please answer Part C Please show work.
Beck and Nilo are equal partners in B & N Associates, a general partnership. B & N has the following liabilities at the end of the current year: Accounts payable Unsecured bank loan Note payable secured by collateral What amount of the debt is included in Beck's at-risk amount in the partnership? A. $2,000 B. $7,000 C. $13,000 D. $15,000 $4,000 10,000 16,000