Fecta, a partnership, had revenues of $378,000 in its first year of operations. The partnership has not collected on $45,800 of its sales and still owes $38.300 on $250,000 of merchandise it purchased. There was no entory on hand at the end of the year. The partnership paid $28,300 in salaries. The partners invested $47,000 in the business and $26,000 was borrowed on a five-year note. The partnership paid $2.340 in interest at was the amount owed for the year and paid $8,800 for a two-year insurance policy on the first day of business. Ignore income taxes. mmpute the cash balance at the end of the first year for Tri Fecta. Multiple Choice O о $165,960 $161,560 ○ $154,060 $158,460
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- Tri Fecta, a partnership, had revenues of $376,000 in its first year of operations. The partnership has not collected on $45,100 of its sales and still owes $40,000 on $175,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $28,400 in salaries. The partners invested $45,000 in the business and $25,000 was borrowed on a five-year note. The partnership paid $2,250 in interest that was the amount owed for the year and paid $8,500 for a two-year insurance policy on the first day of business. Ignore income taxes. Compute the cash balance at the end of the first year for Tri Fecta. Compute the cash balance for the end of the first year for Tri Fecta A.$231,000 B.$226,750 C.$236,100 D.$231,850Tri Fecta, a partnership, had revenues of $368,000 in its first year of operations. The partnership has not collected on $45,700 of its sales and still owes $39,900 on $235,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $29,400 in salaries. The partners invested $48,000 in the business and $24,000 was borrowed on a five-year note. The partnership paid $2,640 in interest that was the amount owed for the year and paid $9,300 for a two-year insurance policy on the first day of business. Ignore income taxes Compute the cash balance at the end of the first year for Tri Fecta Multiple Choice to search $163,660 O $168.310 $162.510 $1578160 O II 8 of 11Tri Fecta, a partnership, had revenues of $377,000 in its first year of operations. The partnership has not collected on $46,200 of its sales and still owes $39,000 on $170,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $29,000 in salaries. The partners invested $43,000 in the business and $27,000 was borrowed on a five-year note. The partnership paid $2,970 in interest that was the amount owed for the year and paid $9,300 for a two-year insurance policy on the first day of business. Compute net income for the first year for Tri Fecta.
- Tri Fecta, a partnership, had revenues of $364,000 in its first year of operations. The partnership has not collected on $46,700 of its sales and still owes $38,000 on $175,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $33,100 in salaries. The partners invested $48,000 in the business and $27,000 was borrowed on a five-year note. The partnership paid $2,430 in interest that was the amount owed for the year and paid $8,900 for a two-year insurance policy on the first day of business. Ignore income taxes.Compute the net income for the first year for Tri Fecta A. $189,000 B. $155,900 C.$149,020 D.$233,430Tri Fecta, a partnership, had revenues of $363,000 in its first year of operations. The partnership has not collected on $46,800 of its sales and still owes $39,200 on $205,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $29,000 in salaries. The partners invested $44,000 in the business and $25,000 was borrowed on a five-year note. The partnership paid $2,250 in interest that was the amount owed for the year and paid $9,000 for a two-year insurance policy on the first day of business. Ignore income taxes. Compute the cash balance at the end of the first year for Tri Fecta. Multiple Choice $179,150 $191,250 $183,650 $186,750Tri Fecta , a partnership , had revenues of $ 200,000 in its first year of operations. The partnership has not collected on $20,000 of its sales and still owes $ 25,000 on $70,000 of merchandise it purchased. There were no inventory on hand at the end of the year .The partnership paid $25,000 in salaries. The partners invested $ 40,000 in business and $ 20,000 was borrowed on a five-year note.The partnership paid $2000 in interest that was the amount owed for the year and paid $ 8,000 for two year insurance policy on the first day of business. Tri Fecta has an effective income tax rate of 40%. Compute net income for the first year for Tri Fecta.
- Jenkins, Willis, and Trent invested $208,000, $364,000, and $468,000, respectively, in a partnership. During its first year, the firm recorded profit of $612,000.Required:Prepare entries to close the firm’s Income Summary account as of December 31 and to allocate the profit to the partners under each of the following assumptions:a. The partners did not produce any special agreement on the method of distributing profits. Record to close income summary account. b. The partners agreed to share profit and losses in the ratio of their beginning investments. Record to close income summary account. c. The partners agreed to share profit by providing annual salary allowances of $112,000 to Jenkins, $122,000 to Willis, and $57,000 to Trent; allowing 15% interest on the partners’ beginning investments; and sharing the remainder equally. Record to close income summary account.The partnership of Rummel and Kang, Stonecutters, reported revenues of $133,000 and expenses of $41,000 on the year-end work sheet. The capital balances as of January 1, 20--, were $41,000 for C. Rummel and $25,000 for V. Kang. No additional investments were made during the year. As stated in their partnership agreement, after withdrawing salary allowances of $43,000 for Rummel and $34,000 for Kang, the partners each withdrew their full 10% interest allowances on their January 1 capital balances. No additional withdrawals were made. Any remaining net income is to be divided on a 60-40 basis. Required: 1. Prepare the lower portion of the income statement of the partnership for the year ended December 31, 20--, showing the division of the partnership net income for the year. 2. Prepare a statement of partners’ equity for the year ended December 31, 20--, and the partners’ equity section of the balance sheet on that date. 3. Prepare closing entries for the partnership as of…Suz-Anna is an partnership with two equal partners, Suzy and Anna. This year, Suz-Anna recorded the following items of income and expense: Sales revenue $ 500,000 Interest income 6,000 Long-term capital gain 10,000 Cost of goods sold (250,000) Salary and wages (75,000) Other operating expenses (55,000) Suz-Anna distributed $25,000 to each of its partners during the year. If Suzy has no other sources of income, what is her gross income for the year? Answer with workings
- After one year of operation of the Smith & Kline partnership, Smith's capital account contains a balance of $46,000 and Kline's capital account contains $54,000. Each partner originally invested $40,000 in the firm. The partnership agreement provides for yearly salary allowances of $12,000 to Smith and $15,000 to Kline, with any balance to be shared equally. There were no additional investments during the year, and no withdrawals were made except for the stipulated salary allowances. The net income for the partnership must have been: A. $27 000 B.$45 000 c. $40 000KLMN Partnership’s financial records show the following: Gross receipts from sales $ 670,000 Cost of goods sold (460,000) Operating expenses (96,800) Business meals not provided by a restaurant (6,240) Section 1231 loss on equipment sale (13,500) Charitable contribution (1,500) Distributions to partners (10,000) Mr. Ty is a 10 percent general partner in KLMN. During the year, he received a $1,000 cash distribution from KLMN. )If Mr. Ty’s adjusted basis in his KLMN interest was $45,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN’s debt did not change during the year -Mr.Ty's adjusted basis at the beginning of year: -Ordinary business income: -Adjustments: -Mr. Ty's adjusted basis at end of year: 2.) How would your basis computation change if KLMN’s debt at the end of the year was $28,000 more than its debt at the beginning of the year?KLMN Partnership’s financial records show the following: Gross receipts from sales $ 670,000 Cost of goods sold (460,000) Operating expenses (96,800) Business meals not provided by a restaurant (6,240) Section 1231 loss on equipment sale (13,500) Charitable contribution (1,500) Distributions to partners (10,000) Mr. Ty is a 10 percent general partner in KLMN. During the year, he received a $1,000 cash distribution from KLMN. Required: Compute Mr. Ty’s share of partnership ordinary income and separately stated items. If Mr. Ty’s adjusted basis in his KLMN interest was $45,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN’s debt did not change during the year. How would your basis computation change if KLMN’s debt at the end of the year was $28,000 more than its debt at the beginning of the year?