winston, CapitalDurham, CapitalSalem, Capital$58,00048,00058,000According to the articles of partnership, all profits will be assigned as follows:Winston will be awarded an annual salary of $18,000 with $9,000 assigned to Salem.The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year.The remainder will be assigned on a 5:2:3 basis, respectively.· Each partner is allowed to withdraw up to $10,000 per year.The net loss for the first year of operations is $22,000 and net income for the subsequent year is $28,000. Each partnerwithdraws the maximum amount from the business each period. What is the balance in Winston's capital account at the endof the second year?Multiple Choice$39,100O $51,010$45,910$55,910

Partnership: This is the form of business entity that is created by an agreement, owned and managed…

capita $58,00 um, Capital , capital 48,000 58,000 ng to the articles of partnership, all profits will be assigned as follows: on will be awarded an annual salary of $18,000 with $9,000 assigned to Sale artners will be attributed interest equal to 10 percent of the capital balance as

capita $58,00 um, Capital , capital 48,000 58,000 ng to the articles of partnership, all profits will be assigned as follows: on will be awarded an annual salary of $18,000 with $9,000 assigned to Sale artners will be attributed interest equal to 10 percent of the capital balance as

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
A partnership begins its first year of operations with the following capital balances: Winston, Capital $ 52,000 Durham, Capital Salem, Capital 42,000 52,000 According to the articles of partnership, all profits will be assigned as follows: • Winston will be awarded an annual salary of $12,000 with $6,000 assigned to Salem. ⚫ The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:2:3 basis, respectively. • Each partner is allowed to withdraw up to $5,000 per year. The net loss for the first year of operations is $20,000 and net income for the subsequent year is $25,000. Each partner withdraws the maximum amount from the business each period. What is the balance in Winston's capital account at the end of the second year?
A partnership begins its first year of operations with the following capital balances: ABC, Capital DEF, Capital GHI, Capital P 110,000 80,000 110,000 According to the articles of partnership, all profits will be assigned as follows: ➤ ABC will be awarded an annual salary of P20,000 with P10,000 assigned to GHI. > The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. ➤ The remainder will be assigned on a 5:2:3 basis, respectively. > Each partner is allowed to withdraw up to P10,000 per year. Reminder from the Student Handbook: Code of Ethics- 24. Assume that the net loss for the first year of operations is P30,000 and that net income for the subsequent year is P40,000. Assume also that each partner withdraws the maximum amount from the business each period. What is the balance in ABC's capital account at the end of the first year?admission with invalidation of grade
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Ange partnership begins its first year of operations with the following capital balances: Ange, Capital P70,000 Bill, Capital P90,000 Cayne, Capital P110,000 The articles of partnership stipulate that profits and losses be assigned in the following manner: Each partner is allocated interest equal to 10% of the beginning capital. Bill is allocated compensation of P2,000 per month. Any remaining profits of losses are allocated on a 4:2:4 basis, respectively. Each partner is allowed to withdraw up to P3,000 cash per year. Assuming that the net income, is 50,000 and that each partner withdraws the maximum amount allowed, what is the balance of the capital of partner Ange at the end of that year?
A partnership begins its first year of operations with the following capital balances: Winston, Capital $ 64,000 Durham, Capital 54,000 Salem, Capital 64,000 According to the articles of partnership, all profits will be assigned as follows: Winston will be awarded an annual salary of $12,000 with $6,000 assigned to Salem. The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:2:3 basis, respectively. Each partner is allowed to withdraw up to $6,000 per year. The net loss for the first year of operations is $24,000 and net income for the subsequent year is $26,000. Each partner withdraws the maximum amount from the business each period. What is the balance in Winston’s capital account at the end of the second year? a. $53,930 b. $59,930 c. $56,930 d. $46,300
15. A partnership begins its first year of operations with the following capital balances: A, Capital P70,000 B, Capital P90,000 C, Capital P110,000 The articles of partnership stipulate that profits and losses be assigned in the following manner: Each partner is allocated interest equal to 10% of the beginning capital. B is allocated compensation of P2,000 per month. Any remaining profits of losses are allocated on a 4:2:4 basis, respectively. Each partner is allowed to withdraw up to P3,000 cash per year. Assuming that the net income is 50,000 and that each partner withdraws the maximum amount allowed, what is the balance of the capital of partner A at the end of that year?
A partnership begins its first year of operations with the following capital balancest Allegan, Capital Berrien, Capital Kent, Capital $ 110,000 80,000 110,000 According to the articles of partnership, all profits will be assigned as follows: ■ Allegan will be awarded an annual salary of $20,000 with $10,000 assigned to Kent. The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:2:3 basis, respectively. Each partner is allowed to withdraw up to $10,000 per year. The net loss for the first year of operations is $20,000, and net income for the subsequent year is $40,000. Each partner withdraws the maximum amount from the business each period. Required: Prepare schedules that compute the balances in each partner's capital account at the end of each of the first two years of partnership operations. Ending Capital Ending Capital Balance Year Balance Year One Two Prepare schedules that…
ces Allegan, Capital Berrien, Capital Kent, Capital According to the articles of partnership, all profits will be assigned as follows: Allegan will be awarded an annual salary of $16,000 with $8,000 assigned to Kent. The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:2:3 basis, respectively. Each partner is allowed to withdraw up to $10,000 per year. ● ● ● The net loss for the first year of operations is $26,000, and net income for the subsequent year is $28,000. Each partner withdraws the maximum amount from the business each period. Required: Prepare schedules that compute the balances in each partner's capital account at the end of each of the first two years of partnership operations. Ending Capital Ending Capital Balance Year Balance Year One Two $ 68,000 58,000 68,000 Prepare schedules that compute the balances in each partner's capital account at the end of Year One of…
A partnership begins its first year with the following capital balances: Alexander, Capital Bertrand, Capital Coloma, Capital $72,000 82,000 92,000 The articles of partnership stipulate that profits and losses be assigned in the following manner. • Each partner is allocated Interest equal to 6 percent of the beginning capital balance. • Bertrand is allocated compensation of $16,000 per year. Any remalning profits and losses are allocated on a 3:3:4 basis, respectively. • Each partner isallowed to withdraw up to $4,000 cash per year. Assuming that the net income Is $82000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year? Multiple Cholce $114,016 $118,016 $98.644 $97,520
A B C partnership began its first year of operations with the following capital balances: A, Capital: $143,000 B, Capital: $104,000 C, Capital: $143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner:  A was to be awarded an annual salary of $26,000 with $13,000 salary assigned to C  Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year  The remainder was to be assigned on a basis 5:2:3, respectively  Each partner was allowed to withdraw up to $13,000 per year Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year. Assume further that each partner withdrew the maximum amount from the business each year. A. What was A's share of income or loss for the first year? B. What was B's share of income or loss for the first year? C. What was C's share of income or loss for the first year? D. What was the balance in…
A partnership begins its first year of operations with the following capital balances: Allegan, Capital $60,000 Berrien, Capital 50,000 Kent, Capital 60,000 According to the articles of partnership, all profits will be assigned as follows: • Allegan will be awarded an annual salary of $20,000 with $10,000 assigned to Kent. ⚫ The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. ⚫ The remainder will be assigned on a 5:2:3 basis, respectively. • Each partner is allowed to withdraw up to $8,000 per year. The net loss for the first year of operations is $24,000, and net income for the subsequent year is $29,000. Each partner withdraws the maximum amount from the business each period. Required: Prepare schedules that compute the balances in each partner's capital account at the end of each of the first two years of partnership operations.