Answered: Bonus to partners

Business

Accounting

Bonus to partners

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section23.2: Distribution Of Net Income And Owners’ Equity Statements

Problem 2AYU

See similar textbooks

Related questions

Q: what are deemed cash contributions? what are deemed cash distribution? how do deemed

A: Deemed cash contributions: If a fund increasses in value for any non-investment related activity the…

Q: expected to produce P70,000, which must be allocated to unse P105,000. The following are some of the…

A: The answer is stated below:

Q: What are the differences between cash and accrual basis accounting? Provide an example of each

A: The financial statements can be prepared using various methods as accrual basis and cash basis…

Q: For assets acquired on credit or by installment, the cost or fair value is equal to: A. cash…

A: The fixed assets are the assets acquired by the business to use for long run.

Q: In bill of exchange the payment is received by

A: Option (d) is the correct answer

Q: A loan borrowed by an individual secured against the personal property is. a. Character b.…

A: The provided options are known as the main Cs that a lender considers when providing a loan.…

Q: Distinguish between cash-basis net income and accrual-basis net income.

Q: Convert from cash-basis net income to accrual-basis net income

A: Cash basis : Under cash basis of accounting, revenues and expenses are recorded only when cash is…

Q: Where in the Current Account would the Share of Loss be found? A. Debit side B. Credit side C. Not…

A: In partnership accounting, we prepare the partner's capital account by two methods. The first is the…

Q: Which of the application of of a. Presenting a the related s b. Deducting fe gains and pr c.…

A: Presentation of Financial Statements PAS 1 describes the basis for presenting the general purpose…

Q: Are the following assets real or financial? a.Patents b.Lease obligations c.Customer goodwill d.A…

A: Assets play a crucial role in the financial world as they represent resources or economic benefits…

Q: Which of the following decreases owner’s equity?A. investments by ownersB. lossesC. gainsD.…

A: Owner's equity is one of the element of accounting equation. It means total amount attributable to…

Q: Which of the following is business income for NOL purposes? Interest earned on savings account.…

A: If your deductions for the year are more than your income for the year, you may have a net operating…

Q: Retirement programs, unemployment benefits, financial aid and other expenses that involve transfers…

A: Transfer of money refers to the movement of money from one individual or entity to another, without…

Q: Matching Principle Concept How does interest expense associate with revenue?

A: The matching principle is a fundamental concept in accounting that dictates that expenses should be…

Q: Interest earned on only the original principal amount invested is: Select one: a.…

A: Interest is a percentage rate which an investor received for its investment for a particular period…

Q: Why are payments received from customers in advance, for either services to be performed and/or for…

A: Advance payment received from the customer there are two reasons which are mentioned are as follows:…

Q: A deposit received is reported as a * A.liability B.current asset C.investment D.revenue

A: Deposit received means amount of money received from vendors or suppliers as deposit.

Q: why loan officer prefer accrual basis accounting

A: The financial statement of a firm can be prepared based on accrual basis of accounting or cash basis…

Q: he Revaluation Reserve Account should be accounted for as part of a. Assets b. Liability c.…

A: Equity - Equity is a that portion of company's balance sheet that includes amount invested by the…

Q: Which of the following is considered or construed as an example of "constructive receipt"?

A: GIVEN the following is considered or construed as an example of "constructive receipt" is

Q: Current account benefits for the account holder and borrowers

A: A bank is a financial institution that provides a mechanism for smooth flow, movement, and transfer…

Q: 19. If an individual renders services to a creditor who in consideration thereof cancels the debt,…

A: If debt is cancelled by creditor against the service received by creditor, then the amount is called…

Q: Advanced collections from customers prior to the performance obligation being satisfied is accounted…

A: 1) Advanced collections from customers prior to the performance obligation being satisfied is…

Q: hich of the following must appear in a public document? a. Donations of immovable property b.…

A: The public document refers to those documents which generally contain the forms or norms formulated…

Q: Be able to calculate outside basis (or sometimes called Partner Basis) on contribution.…

A: "Since you have posted a question with multiple sub-parts, we will solve the first 3-sub parts for…

Question

Which one of the following item will be debited in profit and loss appropriation account? a. Interest on loan b. Interest on drawings c. Interest on deposits d. Bonus to partners

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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

18) Which one of the following will not be recorded in profit and loss appropriation account? a. Commission to partner b. Interest on capital c. Salary to partner d. Interest paid to bank
Partners' withdrawals of assets are: O Credited to their withdrawals account. Debited to their withdrawals account. Credited to their retained earnings account. Debited to their retained earnings account. Debited to their asset accounts.
1. What entry is necessary to reflect interest payable on partner's drawings? a. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Current (Cr.) c. Profit and Loss Appropriation (Dr.), Cash (Cr.) d. Profit and Loss Appropriation (Dr.), Partner's Capital (Cr.) 2. What entry is necessary to reflect interest earned on capital account balances? a. Partner's Drawings (Dr.), Partner's Current (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Drawings (Cr.) c. Partner's Drawings (Dr.), Interest Payable (Cr.) d. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) 3. A partner's personal gas receipts have been treated as part of the partnership's service vehicle expenses. Which of the following entries is necessary to correct the error? a. Drawings (Dr.), Service vehicle expense (Cr.) b. Service vehicle expense (Dr.), Drawings (Cr.) c. Service vehicle expense (Dr.), Capital…
Partners' share of net income is recognized in the accounts through Accrual entries a. O b. Adjusting entries O c. Closing entries O d. Correcting entries
Where in the Current Account would the Share of Loss be found? A. Debit sideB. Credit sideC. Not found in the Current AccountD. Added to the partners salaries
Advances from customers are classified as a(n) a. b. C. d. Select one: a. current asset. b. current liability. С. expense. d. revenue.
Which of the following is considered or construed as an example of "constructive receipt"? a.Retirement benefits, pensions, gratuities b.Deposits for rentals to answer for damages, restricted as to use c.Interest coupons that have matured and are payable but have been cashed d.Fees paid to a public official
Which of the following is business income for NOL purposes? Interest earned on savings account. Unemployment compensation. Alimony received. IRA distribution.
For assets acquired on credit or by installment, the cost or fair value is equal to: A. cash purchase priceB. invoice priceC. installment priceD. list price
Increase in the value of bills payable will be: a. Credited to partners' capital account b. Debited to partners' capital account c. Debited to revaluation account d. Credited to revaluation account *****FAST
Which one of the following is a gain to the partners? a. Interest on loan from bank b. Withdrawal of capital c. Interest on drawings d. Interest on capital
Differentiate between the accrual method and cash method?