Current Attempt in Progress The Ivanhoe Partnership reported profit of $66,000 for the year ended February 29, 2024. Salary allowances are $49,500 for H. Robinson and $27,500 for S. Lewi. Interest allowances of 5% are calculated on each partner's opening capital account balance. Capital account balances at March 1, 2023, were as follows: H. Robinson $79,000 (Cr.) and S. Lewi $52,000 (Cr.). Any remainder is shared equally. Calculate the division of profit to each partner. Profit allocated to partners H. Robinson S. Lewi

Current Attempt in Progress The Ivanhoe Partnership reported profit of $66,000 for the year ended February 29, 2024. Salary allowances are $49,500 for H. Robinson and $27,500 for S. Lewi. Interest allowances of 5% are calculated on each partner's opening capital account balance. Capital account balances at March 1, 2023, were as follows: H. Robinson $79,000 (Cr.) and S. Lewi $52,000 (Cr.). Any remainder is shared equally. Calculate the division of profit to each partner. Profit allocated to partners H. Robinson S. Lewi

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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QUESTION: SHARP AND TOWNSON HAD CAPITAL BALANCES OF $60,000 AND $120,000, RESPECTIVELY ON JANUARY 1 OF THE CURRENT YEAR. ON MAY 8, SHARP INVESTED AN ADDITIONAL $10,000 IN THE PARTNERSHIP. DURING THE YEAR, SHARP AND TOWNSON WITHDREW $25,000 AND $45,000, RESPECTIVELY. AFTER CLOSING ALL EXPENSE AND REVENUE ACCOUNTS AT THE END OF THE YEAR, INCOME SUMMARY HAS A CREDIT BALANCE OF $90,000 THAT SHARP AND TOWNSON HAVE AGREED TO SPLIT ON A 2:1 BASIS, RESPECTIVELY. JOURNALIZE THE ENTRIES TO CLOSE THE INCOME SUMMARY ACCOUNT AND THE DRAWING ACCOUNTS.
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.
Required information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $88,000 and $132,000, respectively. During its first year, the partnership earned $255,000. Prepare calculations showing how the $255,000 income is allocated under each separate plan for sharing income and loss. 3. The partners agreed to share income by giving a $69,000 per year salary allowance to Ramer, a $43,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $255,000. Note: Enter all allowances as positive values. Enter losses as negative values. Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners Ramer Saved Knox Total
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Keri & Nick Consulting’s partners’ equity accounts reflected the following balances on August 31, 2020: Keri Lee, Capital $ 85,000 Nick Kalpakian, Capital 209,000 Lee and Kalpakian share profit/losses in a 2:3 ratio, respectively. On September 1, 2020, Liam Court is admitted to the partnership with a cash investment of $126,000. Required: Prepare the journal entry to record the admission of Liam under each of the following unrelated assumptions, where he is given: a. A 30% interest in equity -Record the admission of new partner b. A 20% interest in equity -Record the admission of new partner c. A 50% interest in equity -Record the admission of new partner
Current Attempt in Progress The A and B partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $80900 for A and $40100 for B. At the beginning of the year, A's capital account had a balance of $79300, while B's capital account had a balance of $71000. Profit for the year was $96000. The balance of B's capital account at the end of the year after closing is $40100. $121000. $68400. Ⓒ$98600.
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Find Bonus, Interest, and Reminder to allocate for each The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: Jones, the managing partner, receives a bonus equal to 10 percent of the business’s profit. Each partner receives 10 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones $ 80,000 King 160,000 Lane 240,000 The partnership earned $40,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners
d. Fallon and Springer formed a partnership on January 1. Fallon contributed $90,000 cash and equipment with a market value of $60,000. Springer contributed $30,000 of cash and inventory with a market value of $20,000, Partnership net income for Year 1 was $75,000. Determine each partner's share of the net income for each year, assuming income is divided based on the ratio of the partners original capital investments. Allocate Net Income Net income allocated to each partner Fallon Springer
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Keri & Nick Consulting’s partners’ equity accounts reflected the following balances on August 31, 2020: Keri Lee, Capital $ 68,000 Nick Kalpakian, Capital 205,000 Lee and Kalpakian share profit/losses in a 2:3 ratio, respectively. On September 1, 2020, Liam Court is admitted to the partnership with a cash investment of $117,000.Required:Prepare the journal entry to record the admission of Liam under each of the following unrelated assumptions, where he is given:a. A 30% interest in equityb. A 20% interest in equityc. A 50% interest in equity