Keith and Jim are partners. Keith has a capital balance of $49,000 and Jim has a capital balance of $38,000. Bill invested $33,000 to acquire anownership interest of 30%. Which of the following statements is TRUE of this transaction? (Round the final answer to the nearest dollar.)O A) Keith and Jim received a bonus of $1500 each.B) Bill received a bonus of $4900.C) Keith and Jim received a bonus of $2450 each.D) Bill received a bonus of $3000

The total capital after new partner bill investment is calculated below, Total capital=49,000 +…

Answered: Keith and Jim are partners. Keith has a…

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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Alex and Brix are partners. A salary of P 50,000 is given to Alex and balance shall be divided equally. Assuming that profit is P 20,000, how much will Alex receive as share in the profit?
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1.Tom, Greg, and Tim are partners who share profits 50%, 25%, and 25%. Their capital balances were $117,000, $78,000, and $45,000, respectively, before Tim's retirement. Tom and Greg each paid Tim $30,000 from their personal assets to buy half his interest. After Tim has withdrawn, Tom will have a capital balance of $____________. 2.Sarah, Lila, and June are partners who share profits 40%, 20%, and 40%. Their capital balances were $280,000, $120,000, and $80,000, respectively, before June’s retirement. June was paid $56,000 from partnership assets to buy her interest. After June has withdrawn, Sarah will have a capital balance of $____________. 3.Rob and Chrissie are partners who share profits 60% and 40%. Their capital balances were both $60,000 before Dora was admitted to the partnership. Dora contributed $100,000 in cash to the partnership for a 30% interest. After Dora is admitted to the partnership, Rob will have a capital balance of $____________. 4.Lacy and Jenny are…
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Singer and McMann are partners in a business. Singer's original capital was $43,200 and McMann's was $52,800. They agree to salaries of S10,500 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses in a 3:2 ratio, what will Singer's share of the income be if the income for the year is $66,600? Oa. S10,500 Ob. $14,820 Oc. $31,920 Od. S39,960
Ahmed, Arif, and Amin are partners in a firm, the net profit for the year was RO 56000. The partners agreed to share the profit in the ratio of 3 : 2 : 2 respectively. The share of profit for each partner will be: a. Ahmed: RO 34000, Arif: RO 26000, Amin: RO 26000 b. Ahmed: RO 16000, Arif: RO 8000, Amin: RO 24000 c. Ahmed: RO 24000, Arif: RO 16000, Amin: RO 16000 d. Ahmed: RO 12000, Arif: RO 8000, Amin: RO 8000
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6) Oliva Tsang and David Breck began a partnership by investing $5,000 and $45,000 respectively. For the year-ended December 31, 2009, the partnership earned $100,000. The partners agree to share income by allowing a $65,000 per year salary allowance to Breck, a $15,000 per year salary allowance to Tsang, 5% interest on beginning capital balances and the remainder equally. a) Prepare calculations that show how the income should be allocated to the partners under the following plans for sharing net incomes and losses.
The partners of Dan and Ken are engaged in trading. Dan's original capital was P40,000 and Ken 's was P60,000. They agreed to share profits and losses as follows: Dan Ken Php28,000 10% 30% Salaries Interest on original capital Balance Php40,000 10% 70% а. Р44,600 b. Р46,400 If the profits for the year were P120,000, what share of the profits would Dan receive? c. P57,400 d. P75,600 а. Р2,600 b. (Р22,600) [f the losses for the year were P20,000, what share of the loss would Ken receive? c. (P2,600) d. P5,200
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