Holly and Luke formed a partnership, investing $240,000 and $80,000, respectively. Determine their participation in the year's net income of $200,000 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 1596 allowed on original investments and the remainder dividied in the ratio of 2:3 d. Salary allowances of $50,0000 and $70,000, respectively, and the balance divided equally; e. Allowance of interest at the rate of 1596 on original investments, salary allowances of $50,000 and $70,000, respectively, and the remainder divided equally. DO NOT USE A DECIMAL WITH ZEROES FOR WHOLE DOLLAR AMOUNTS AND USE COMMAS APPROPRIATELY. Holly Luke Total a. b. 24 C. d.

Holly and Luke formed a partnership, investing $240,000 and $80,000, respectively. Determine their participation in the year's net income of $200,000 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 1596 allowed on original investments and the remainder dividied in the ratio of 2:3 d. Salary allowances of $50,0000 and $70,000, respectively, and the balance divided equally; e. Allowance of interest at the rate of 1596 on original investments, salary allowances of $50,000 and $70,000, respectively, and the remainder divided equally. DO NOT USE A DECIMAL WITH ZEROES FOR WHOLE DOLLAR AMOUNTS AND USE COMMAS APPROPRIATELY. Holly Luke Total a. b. 24 C. d.

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

Suby: accounting
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 $136,000 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 а. $ $4 b. С. d. $ е.
Xavier and Yolanda have original investments of $54,900 and $100,100, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $26,200 and $31,100, respectively; and the remainder to be divided equally. How much of the net income of $115,300 is allocated to Xavier?
Dallas and Weiss formed a partnership to manage rental properties, by investing $164,000 and $246,000, respectively. During its first year, the partnership recorded profit of $514,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. b. The partners agreed to share profits and losses in proportion to their initial investments. c. The partners agreed to share profit by allowing a $156,000 per year salary allowance to Dallas, an $86,000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Enter "0" when the answer is zero.)
Cosmo and Ellis began a partnership by investing $50,000 and $75,000, respectively. During its first year, the partnership earned $165,000. Prepare calculations showing how the $165,000 income should be allocated to the partners under each of the following three separate plans for sharing income and loss: (1) the partners failed to agree on a method to share income; (2) the partners agreed to share income and loss in proportion to their initial investments (round amounts to the nearest dollar); and (3) the partners agreed to share income by granting a $55,000 per year salary allowance to Cosmo, a $45,000 per year salary allowance to Ellis, 10% interest on their initial capital investments, and the remaining balance shared equally
Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership agreement provided for salary allowances of $50,000 and $44,000, respectively. Determine the division of a $25,000 net loss for the current year, assuming that remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies. Lynn Carpenter Matthew Fredrick Total Salary Allowance $ $ $ Remainder $ $ $ Net Loss $ $ $
Jenkins, Willis, and Trent invested $220,000, $385,000, and $495,000, respectively, in a partnership. During its first yeal the firm recorded profit of $615,000. 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. c. The partners agreed to share profit by providing annual salary allowances of $115,000 to Jenkins, $125,000 to Willis, and $60,000 to Trent; allowing 15% interest on the partners' beginning investments; and sharing the remainder equally.
William and Ardi's capital balances are $12.000 and $8,000, respectively. The partnership firm owes wheeler $3,000 on a note. Profit is divided equally. On liquidation, $4,000 in cash is available for distribution to the two partners. How should this cash be distributed to them?
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 $285,000 under each of the following independent assumptions: c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3.
Seth and Beth have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remainder to be divided equally. How much of the net income of $42,000 is allocated to Seth?
Holly and Luke formed a partnership, investing $240,000 and $80,000, respectively. Determine their participation in the year's net income of $380,000 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 15% allowed on original investments and the remainder divided in the ratio of 2:3 (2/5 to Holly and 3/5 to Luke) Salary allowances of $50,000 and $70,000, respectively, and the balance divided equally Allowance of interest at the rate of 15% on original investments, salary allowances of $50,000 and $70,000, respectively, and the remainder divided equally Holly Luke Total a. $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 b. $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 c. $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 d. $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 e.…
Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, 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;