CHAPTER 11 Partnerships204 SContributionProfit sharingBalance shared equallyCash withdrawal during yearExercise 11-3 Journalizing partnership entries LO2, 3CHECK FIGURES: 1. Share of profit: Regal: $135,250; Merle: $41,750On April 1, 2023, Harry Regal and Meghan Merle formed a partnership in Alberta, renting reusable mboxes.Regal77,000то97,000 cash107,000 salary allowance15% of original capital investmentsreioanExercise 11-4 Journalizing partnership entries LO2, 3CHECK FIGURES: 1. Share of profit: Williams: $116,000; Xie: $44,000On February 1 2023 Tessa Williams and Audron, v.CUnitx Price pe62,000Replacedx Price perMerEstimated137,000 land50,000 building15% of original capital investmentsAccrucReplacEstinNet Income during the year was $177,000 and was in the Income Summary account.Required1. Present general journal entries to record the initial capital investments of the partners, their cash witdrawals, and the December 31 closing of the Income Summary and withdrawals accounts.2. Determine the balances of the partners' capital accounts as of the end of 2023.MdGu!!!MPubHExerciseCHECK FIJensen arand $20to JenseRequi2.ExeCHLiare$2

A partnership is a type of business in which two or more persons formally agree to share ownership,…

Exercise 11-3 Journalizing partnership entries LO2, 3 On April 1, 2023, Harry Regal and Meghan Merle formed a partnership in Alberta, renting reusable mo CHECK FIGURES: 1. Share of profit: Regal: $135,250; Merle: $41,750 boxes. Contribution Profit sharing Balance shared equally Cash withdrawal during year Regal 97,000 cash 107,000 salary allowance 15% of original capital investments 77,000 Mer 137,000 land 50,000 building 15% of original capital investments 62,000 E C Net Income during the year was $177,000 and was in the Income Summary account. Required 1. Present general journal entries to record the initial capital investments of the partners, their cash wit drawals, and the December 31 closing of the Income Summary and withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of the end of 2023.931TE0

Exercise 11-3 Journalizing partnership entries LO2, 3 On April 1, 2023, Harry Regal and Meghan Merle formed a partnership in Alberta, renting reusable mo CHECK FIGURES: 1. Share of profit: Regal: $135,250; Merle: $41,750 boxes. Contribution Profit sharing Balance shared equally Cash withdrawal during year Regal 97,000 cash 107,000 salary allowance 15% of original capital investments 77,000 Mer 137,000 land 50,000 building 15% of original capital investments 62,000 E C Net Income during the year was $177,000 and was in the Income Summary account. Required 1. Present general journal entries to record the initial capital investments of the partners, their cash wit drawals, and the December 31 closing of the Income Summary and withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of the end of 2023.931TE0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Knowledge Check 01 Eric Christie and Johnnie Pitt organize a partnership. Their partnership agreement states that Christie will receive two-thirds of the partnership income or loss and Pitt will receive the remain one-third. On January 2, the two partners agree to accept Peter Morgan as a partner with a 10% interest if Morgan invests $50,000 At the time of Morgan's admission, the partnership's accounting records show that Christie has recorded equity of $210,00Cd Pit has recorded equity of $60,000. The bonus that will be allocated to Christie as a result of this transaction (rounded to the ne. est dollar) is: $6,000. $16.667. Ⓒ$18,000. $50,000. $12,000.
question 85
Problem 11-5B Partnership entries, profit allocation, admission of a partnerLO2, 3, 4 CHECK FIGURES: c. Cr. Amrick: $259,860; Cr. Balas: $150,140; d. Dr Balas: $50,520 On July 1, 2022, Alleya Amrick and Breanne Balas formed a partnership to make crafts and sell them online. Contribution (at formation on July 1 a $43,000 note payable was taken by the partners to purchase added equipment) Profit sharing Amrick $100,000 cash $183,000 equipment Required 1. Prepare journal entries for the following dates: a. July 1, 2022 b. June 20, 2023 $153,000 salary allowance 10% of original capital investments Balance 40% Balas $183,000 cash $140,000 equipment 10% of original capital investments Balance 60% $103,000 Cash withdrawal June 20, 2023 Net Income during the year was $410,000 and was in the Income Summary account. On July 1, 2023 Calla Cameron invested $123,000 and was admitted to the partnership for a 20% interest in equity
Problem 14-54 (LO 14-2, 14-3) Wade has a beginning basis in a partnership of $23,000. His share of income and expense from the partnership consists of the following amounts: Ordinary income Guaranteed payment Long-term capital gain 5 1231 gain Charitable contributions $ 179 expense Cash distribution Required: a. What is Wade's self-employment income? $ 43,000 12,000 15,500 4,300 2,000 b. Calculate Wade's basis at the end of the year. 18,000 6,000 a. Self-employment income b. Ending basis Amount
Required information Problem 12-3A (Algo) Allocating partnership income LO P2 [The following information applies to the questions displayed below] Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first calendar year, the firm earned $430,200. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $430,200 net income under each of the following separate assumptions. Problem 12-3A (Algo) Part 3 3. The partners agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to Thomas, granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your answers in the tabs below. Appropriation of profits General Journal Allocate $430,200 net indome by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to…
Exercise 3 – 9. Net Income distribution and computation of partner's capital balance On July 1, 2020, Lucia and Jacinta formed LJ Partnership with initial investment of P1,500,000 and P1,000,000, respectively. Lucia is the managing partner of the business. The articles of co-partnership provides that profit or loss shall be distributed accordingly: • 12% interest on original capital contributed by the partners. • Monthly salary of P40,000 and P20,000 respectively for Lucia and Jacinta. Lucia will be given bonus of 5% of net income of the business. The remainder shall be distributed in ratio of 4:6 to Lucia and Jacinta respectively. For the year ended December 31, 2021, the partnership reported net income of P1,200,000. 1) What is the share in net income of Lucia and Jacinta for the year ended December 31, 2021? 21 Copyright 202 1 Marivic Valenzuela-Manalo. All rights reserved. No part of this learning module may be used, reproduced, stored, or transmitted in any form or by any means…
9
Question 2 TYT Partnership is established by Teesha and Yeen in January 2018. Teesha contributes RM50,000 to the capital of the partnership while Yeen contributes 4 of Teesha's capital contribution. The interest on capital allocated for each partner is 8% per annum. The partners agreed to share the profit and losses equally. Teesha's salary per month is RM7,500 and is expected to increase 12% starting July 2020. The partnership's trading, profit and loss account for the year ended 31.12.2020 was as follows: RM 1,216,000 (607,000) 609,000 Sales proceeds Less: Cost of sales Gross profit Additional information: a) Included in the sales proceeds is gain on machine disposal RM2,050. b) Items incurred in the business expenses: • Weekly house cleaning for Teesha costing RM5,200; ● Maxis Wi-Fi deposit for office premise RM530; ● Less: Business expenses Net profit for the year ● Purchased office printer RM3,000. Assumed printer is considered as office equipment; Partners' salary RM167,400 and…
Cap 12 eBook Show Me How Recording Partner's Original Investment Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $18,920; accounts receivable with a face amount of $198,660 and an allowance for doubtful accounts of $7,170; inventory with a cost of $99,540; and equipment with a cost of $139,330 and accumulated depreciation of $90,560. The partners agree that $8,740 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $14,900 is a reasonable allowance for the uncollectibility of the remaining accounts, that the inventory is to be recorded at the current market price of $93,570, and that the equipment is to be valued at $61,450. Journalize the partnership's entry to record Kaiser's investment. If an amount box does not require an entry, leave it blank.
A-7
Question 5 Allan, Bryan and Catty are partners in a partnership engaging in a food catering business. The terms of the partnership agreement until 30 September 2021 were as follows: Allan Bryan Catty RM RM RM Capital contribution Salary per annum Interest on capital per annum Partners' private expenses 90,000 60,000 105,000 75,000 72,000 54,000 5% 5% 5% 10,000 9,000 7,000 On 30 September 2021, Bryan withdrew as a partner. Upon the withdrawal of Bryan, the interest on capital for Allan and Catty was revised to 4% per year with the other terms remaining the same. The profit or loss is shared equally among the partners throughout the whole year. The provisional adjusted income for the year ended 31 December 2021 was RM280,926. The capital allowance on the plant and machinery was RM4,000. The partnership made a cash donation of RM6,000 to an approved institution on 30 June 2021. Required: Compute the divisible income for the partnership and the total income of the partners for the year of…
Required information Problem 12-3A (Algo) Allocating partnership income LO P2 Skip to question [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $58,000, $74,000, and $82,000, respectively, in a partnership. During its first calendar year, the firm earned $361,500. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $361,500 net income under each of the following separate assumptions.