ershlp entrles and statement of partners' equityInstructionsChart of AccountsAmount DescriptionsCouimalInstructionsThe capital accounts of Angel Alvarez and Emma Allison have balances of $46,850 and $72,000, respectively, on January 1, 20Y4, the beginning of the fiscal year. On March10. Alvarez invested an additional $8,360. During the year, Alvarez and Allison withdrew $32,230 and $40,410, respectively, and net income for the year was $62,000.Revenues were $483,000, and expenses were $421,000. The articles of partnership make no reference to the division of net income.Required:A. Joumalize the entries to close (1) the revenues and expenses and (2) the drawing accounts on December 31, Refer to the Chart of Accountsfor exact wording of account titdles.B. Prepare a statement of partnership equity for the current year for tthe partnership of Alvarez and Allison. Refer to the Amount Descriptions listprovided for the exact wording of the answer choices for text entries.Next>Previous3 more Check My Work uses remaining.Check My Work10:16

In a partnership, two or more parties agree to operate and manage a business and share the profits…

Answered: ershlp entrles and statement of…

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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Appropriation of profits General Journal Allocate $412,200 net income by providing annual salary allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally, Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Balance after interest and salaries Balance allocated equally Balance of income Shares of the partners Ries $ 38,000 $ 5,600✔ 45,600 x Bax 33,000 $ 7,200 89,200 $ 40,200 Thomas 45,000 8,000 $ 53,000 Total 116,000 (116,000) 20,800 (136,800) 45,600 $ (182,400) rnal
Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $100,000 and $150, 000, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $36,000 and $49,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $49, 000, respectively, and the remainder divided equally. Dawson McDonald a. $fill in the blank 1 $fill in the blank 2 b. $fill in the blank 3 $fill in the blank 4 c. $fill in the blank 5 $fill in the blank 6 d. $fill in the blank 7 $fill in the blank 8 e. $fill in the blank 9 $fill in the blank 10
Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $67,500 and $202,500, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $40,000 and $48,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $48,000, respectively, and the remainder divided equally. Dawson McDonald a. b. $ $ C. $ $4 d. 2$ 2$ %24
Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $276,000 and $92,000, respectively. Determine their participation in the year’s net income of $380,000 under each of the following independent assumptions: a. No agreement concerning division of net income.b. Divided in the ratio of original capital investment.c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.d. Salary allowances of $47,000 and $59,000, respectively, and the balance divided equally.e. Allowance of interest at the rate of 5% on original investments, salary allowances of $47,000 and $59,000, respectively, and the remainder divided equally. Dawson McDonald a. $fill in the blank 1 $fill in the blank 2 b. $fill in the blank 3 $fill in the blank 4 c. $fill in the blank 5 $fill in the blank 6 d. $fill in the blank 7 $fill in the blank 8 e. $fill in the blank 9 $fill in the blank 10
Partner bonuses, statement of partnership equity The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: Dennis Overton $31, 860 Ben Testerman 68, 440 The following additional partner transactions took place during the year: 1. In early January, Randy Campbell is admitted to the partnership by contributing $17,700 cash for a 15% interest. 2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $ 30,000 for the year. The three partners agree to an income - sharing ratio equal to their capital balances after admitting Campbell. 3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income. Prepare a statement of partnership equity for the year ended December 31, 20Y5. If an amount box does not require an entry, leave it blank.
Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $180,000 and $60,000, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $47,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $38,000 and $47,000, respectively, and the remainder divided equally. Dawson a. b. C. d. e. McDonald
Required information [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your ans below. Appropriation General of profits Journal Allocate $249,000 net income by providing annual $66,000 to Ries, $56,000 to Bax, and $80,000 to interest on the partners' beginning capital investm remainder equally. Supporting Calculations Net income Salary allowances…
Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $195,000 and $65,000, respectively. Determine their participation in the year's net income of $295,000 under each of the following independent assumptions: No agreement concerning division of net income. Divided in the ratio of original capital investment. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. Salary allowances of $40,000 and $50,000, respectively, and the balance divided equally. Allowance of interest at the rate of 6% on original investments, salary allowances of $40,000 and $50,000, respectively, and the remainder divided equally. Hawes Albright (a) $ $ (b) $ $ (c) $ $ (d) $ $ (e) $ $
vj subject-Accounting
P12-2C At the end of its first year of operations on December 31, 2012, the LAX Company's Journalize divisions of net in- accounts show the following. come and prepare a partners' capital statement. Partner Drawings $12,000 9,000 4,000 Сapital $33,000 (SO 3, 4) J. Leno L. Arthur 20,000 10,000 J. Xavier The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2012 has not been closed to the partners' capital accounts. Instructions (a) (1) Leno $20,000 (2) Leno $14,000 (3) Leno $24,200 (a) Journalize the entry to record the division of net income for 2012 under each of the follow- ing independent assumptions. (1) Net income is $40,000. Income is shared 5:3:2. (2) Net income is $30,000. Leno and Arthur are given salary allowances of $11,000 and $10,000, respectively. The remainder is shared equally. (3) Net income is $33,000. Each partner is allowed interest of 10% on beginning capital bal- ances. Leno is given an $18,000 salary…
Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $60,000 and $180,000, respectively. Determine their participation in the year's net income of $280,000 under each of the following independent assumptions: a. No agreement concerning division of net income.b. Divided in the ratio of original capital investment.c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3.d. Salary allowances of $40,000 and $45,000, respectively, and the balance divided equally.e. Allowance of interest at the rate of 6% on original investments, salary allowances of $40,000 and $45,000, respectively, and the remainder divided equally. Dawson McDonald a. $fill in the blank 1 $fill in the blank 2 b. $fill in the blank 3 $fill in the blank 4 c. $fill in the blank 5 $fill in the blank 6 d. $fill in the blank 7 $fill in the blank 8 e. $fill in the blank 9 $fill in the blank 10
Exercise 3-7. Distribution of Net Loss to partners Carmela and Ferdinand formed a partnership on January respectively. The partnership reported a net loss of P80,000. 1, 2023, with initial investments of P300,000 and P500,000, The partnership agreement provides that profit or loss shall be distributed accordingly: • Monthly salary of P10,000 and P5,000 respectively for Carmela and Ferdinand, . 10% interest on partners' original capital. . 20% bonus to Carmela based on net income before interest, and salary. •The remainder is shared in the ratio of 3:2 respectively. Required: Determine the share of Carmela and Ferdinand in the net loss.

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