Jacob and Ethan are partners who agree that Jacob will receive a $45,000 salary allowance and that any remaining income or loss will be shared equally. If Ethan's capital account is credited for $1,500 as his share of the net income in a given period, how much was the total net income for the partnership?

Jacob and Ethan are partners who agree that Jacob will receive a $45,000 salary allowance and that any remaining income or loss will be shared equally. If Ethan's capital account is credited for $1,500 as his share of the net income in a given period, how much was the total net income for the partnership?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 2BCRQ

See similar textbooks

Similar questions

Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.
Blake and Matthew are partners who agree that Blake will receive a $100,000 salary allowance and that any remaining income or loss will be shared equally. If Matthew’s capital account is credited for $2,000 as his share of the net income, how much net income did the partnership earn?
How much net income did the partnership earn in that period?
Sophia and Daniel are business partners who agree that Sophia will receive a $45,000 salary allowance, and any remaining profit or loss will be split equally. If Daniel's capital account is credited with $2,800 as his share of the net income, what is the total net income of the partnership?
L&J Interests is a partnership with two equal partners, Linda and Joanne. The partnership has income for the year of $44,400 before guaranteed payments. Guaranteed payments of $26,640 are paid to Linda during the year. Calculate the amount of income that should be reported by Linda and Joanne from the partnership for the year. Linda should report income of: $ Joanne should report income of: $
The ABC Partnership agreement provides for guaranteed payments for services rendered of $70,000, $64,000, and $60,000 for Adam, Brian, and Cynthia, respectively. After the guaranteed payments are deducted, the partnership agreement calls for sharing of profits and losses as follows: Adam – 40%, Brian – 35%; Cynthia – 25%. Each partner is a general partner. If net profits before the guaranteed payments are $176,000, what amount of income from the partnership should each partner report on his or her individual income tax return (what amount for each partner is subject to self-employment tax)?
If the articles of partnership provide for annual salary allowances of $36,000 and $18,000 to Partner X and Partner Y, respectively, and net income is $30,000, Partner X's share of net income is $20,000. O True O False
Partners T. Gronkowski and R. Brady are provided salary allowances of $31,800 and $26,500, respectively. They divide the remainder of the partnership income in a ratio of 3:2. If partnership net income is $42,400, how much is allocated to Gronkowski and Brady?
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?