KYLE INVESTS $20,000 IN A PARTNERSHIP THAT HAS FIVE OTHER PARTNERS. THE TOTAL INVESTMENT OF THE PARTNERS IS $160,000. WHAT PERCENT OF THE BUSINESS IS OWNED BY THE FIVE OTHER PARTNERS?
Q: Hansen and Fleming are partners and share equally in income or loss. Hansen’s current capital…
A: Income: This is the amount earned from operations of a business. The operating activities are sale…
Q: Hay, Straw and Clover formed the HSC Partnership, agreeing to share profits and losses equally.…
A: Partnership is firm in which two or more persons who agree to combine financial resources to operate…
Q: Watts and Lyon are forming a partnership. Watts invests $40,500 and Lyon invests $49,500. The…
A: Year 1 Plan Alternative Watt % Lyon % Total Plan (1) Allocation the ratio of their…
Q: Mike and Rachel form M&R Partnership. Mike invests $40,000 cash and Rachel invests $60,000 cash.…
A: Partner's Equity shows the ownership interest of the partners in the business. The partner's Equity…
Q: Stokely and Leder are forming a partnership. Stokely invests in a building that has a market value…
A: Partnership: The form of business entity which is formed by an agreement, owned and managed mutually…
Q: The capital accounts of Susan Yu and Ben Hardy have balances of $100,000 and $90,000 respectively.…
A: "Admission of new partners" refers to the process of bringing in new individuals or entities to a…
Q: Oliva Tsang and David Breck began a partnership by investing $5,000 and $45,000 respectively. For…
A: Introduction:- Oliva Tsang and David Breck invested $5,000 and $45,000, respectively, to start their…
Q: Suz-Anna is an partnership with two equal partners, Suzy and Anna. This year, Suz-Anna recorded the…
A: A partnership is a form of business organization where two or more people (partners) come together…
Q: the capital balance for Messalina is $210,00 and for Romulus is $140,000 These two partners share…
A: TOTAL CAPITAL AFTER CLAUDIUS INVESTMENT : = $210,000 + $140,000 + $100,000 = $450,000 CLAUDIUS…
Q: Jerry and Sherry own and operate a partnership. Jerry’s capital balance is $50,000 and Sherry’s is…
A: Hello. Since your question has multiple sub-parts, we will solve the first three complete sub-parts…
Q: pat, jean lou, and diane are partners with capital balances of $50,000, $30,000, and $20,000…
A: The objective of the question is to determine the reason behind the amount of Mary Ann's investment…
Q: Merkel and Putin began a partnership by investing $6,000 and $4,000, respectively. During its first…
A: 1. the partners share income and loss equally:
Q: The capital accounts of Trent Henry and Tim Chou have balances of $160,000 and $100,000,…
A: a)
Q: The amount of the bonus to the old partners is
A: Bonus method- Under this method, difference arising between the share in the total capital of the…
Q: Kim Locke and Mary Leigh Coker have capital accounts of $430,000 and $484,000, respectively. Jeff…
A: Note: Consideration paid to Locke and Coker for purchasing the share in partnership is not relevant…
Q: Black and Shannon have decided to form a partnership. They have agreed that Black is to invest…
A: Ratio of Original Investment = 360,000 : 120,000 = 3 : 1 Ratio of Time Devoted = 1 : 2
Q: Bruce Delew and Nadia Comatof formed a partnership, dividing income as follows: Annual salary…
A: Distribution of profit in partnership firm :—1] Profit/Loss of the firm is distributed between the…
Q: Choose the correct. Pat, Jean Lou, and Diane are partners with capital balances of $50,000, $30,000,…
A: It is the rule to revalue the assets of a firm when a new partner enters in order to assess his…
Q: Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn).…
A: The objective of the question is to calculate the new capital balance of Tomas after the…
Q: After the tangible assets have been adjusted to the current market prices, the capital accounts of…
A: The bonus of $10,000 given to new partner is to be allocated to Cecil Jacobs and Maria Esteban…
Q: Myles Etter and Crystal Santori are partners who share in the income equally and have capital…
A: Partnership It is that form of organization which is owned and managed by two or more persons who…
Q: Kala and Leah, partners in Best Designs, have capital balances of $40,000 and $60,000, respectively.…
A: A Partnership is formed when two or more people decide to run a business together and agree to split…
Q: Greg and Harriet are partners in GH partnership. Greg originally contributed $50,000 while Harriet…
A: Partnership: It can be defined as an agreement, where there involve two or more than two persons,…
Q: Watts and Lyon are forming a partnership. Watts invests $42,000 and Lyon invests $63,000. The…
A: (a) in the ratio of their initial capital investments:
Q: The profits from a partnership are to be distributed so that Gordan receives 32% more than Kathy,…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: Saly and Jena formed a partnership with capital contributions of $300,000 and $400,000,…
A: Net income refers to the income earned after deduction of the company’s expenditures from the…
Q: Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at…
A: Total capital before admitting Chris = $60,000 + $60,000 = $120,000 Total Capital after admitting…
Q: Choose the correct. Bishopapital balance of $120,000 in a local partnership, and Cotton has a…
A: Total capital after Lovett invests = $120,000 + $90,000 + $60,000 = $270,000 Actual value of…
Q: Jamie Holley and Riley Roger share equally in partnership profits. Holley’s partnership capital…
A: The basic information provided is:- • Jamie Holley and Riley Roger share equally in partnership…
Q: Jack and Tony are partners in a software engineering company. Jack and Tony have capital balances of…
A: Partnership:- It is a relationship between two or more people to oversee business operations and…
Q: Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business…
A: The balance sheet shows the financial position of the company. It includes the assets, liabilities,…
Q: Capital balances of Chris, Oscar and Tim in the COT partnership are $120,000, $100,000 and $80,000…
A:
Q: 1. You plan to invest $10,000 in a general partnership. There will be four other general partners,…
A: In General partnership , the liability of partners is unknown, uncertain and unlimited. Irrespective…
Q: Complete the tables, one for each of the first three years, by showing how to allocate partnership…
A: PLAN (A)WattsLyonTotalNet Income/(Loss)($14,000)Balance allocated in Proportion to initial…
Q: K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $50.600 of…
A: A partnership is described as a legally binding agreement between two or more parties to run a…
Q: The amount of the bonus to the old partners is a.$56,800 b.$0 c.$14,500 d.$70,500
A: Given information is: Samuel and Darci are partners. The partnership capital for Samuel is $65,500…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- In a partnership business, Jack has an ownership of 60% and Teresa has an ownership of 40%. For growing the business, Jack contributed $7,000 and Teresa contributed $3,000 on July 1. Which of the following is true of this scenario? A Only the total contribution of $10,000 will be recorded B Individual contribution of $7,000 by Jack and $3,000 by Teresa will be recorded C Either the total contribution of $10,000 or the contribution in the ownership ratio will be recorded D 60% of Jack's contribution and 40% of Teresa's contribution will be recordedWatts and Lyon are forming a partnership. Watts invests $24,500 and Lyon invests $45,500. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon will work three-fourths. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments; (b) in proportion to the time devoted to the business; (c) a salary allowance of $18,000 per year to Lyon and the remaining balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $18,000 per year to Lyon, 9% interest on their initial capital investments, and the remaining balance shared equally. The partners expect the business to perform as follows: Year 1, $17,000 net loss; Year 2, $42,500 net income; and Year 3, $70,833 net income. Required: Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of…Dylan Howell and Demond Nickles have decided to form a partnership. They have agreed that Howell is to invest $50,000 and that Nickles is to invest $75,000. Howell is to devote full time to the business, and Nickles is to devote one-half time. The following plans for the division of income are being considered: Equal division In the ratio of original investments In the ratio of time devoted to the business Interest of 10% on original investments and the remainder in the ratio of 3:2 Interest of 10% on original investments, salary allowances of $38,000 to Howell and $19,000 to Nickles, and the remainder equally Plan (e), except that Howell is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances Instructions For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $420,000 and (2) net income of $150,000. Present the data in tabular form, using the following…
- Jenkins, Willis, and Trent invested $252,000, $441,000, and $567,000, respectively, in a partnership. During its first year, the firm recorded profit of $639,000. d- The partners agreed to share profit by providing annual salary allowances of $123,000 to Jenkins, $133,000 to Willis, and $68,000 to Trent; allowing 10% interest on the partners’ beginning investments; and sharing the remainder equally. Record to close income summary account.Watts and Lyon are forming a partnership. Watts invests $40,500 and Lyon invests $49,500. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon will work three-fourths. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments; (b) in proportion to the time devoted to the business; (c) a salary allowance of $15,000 per year to Lyon and the remaining balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $15,000 per year to Lyon, 11% interest on their initial capital investments, and the remaining balance shared equally. The partners expect the business to perform as follows: Year 1, $13,000 net loss; Year 2, $32,500 net income; and Year 3, $54,167 net income. Required: Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of…Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $93,000 cash from Busby and $207,000 from Beatty. During Year 1, the partnership earned $62,900 in cash revenues and paid $34,050 for cash expenses. Busby withdrew $2,900 cash from the business, and Beatty withdrew $4,700 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement (statement of changes in equity),
- The capital balance for Maxwell is $110,000 and for Russell is $40,000. These two partners share profits and losses 70 percent (Maxwell) and 30 percent (Russell). Evan invests $50,000 in cash into the partnership for a 30 percent ownership. The bonus method will be used. What is Russell’s capital balance after Evan’s investment? $35,000 $37,000 $40,000 $43,000three partners, John, Jim, and Alice form a partnership. John invests $27,500; Jim invests $10,700, and Alice invests $8,400. In addition, Jim performs specific management functions for which he is paid $2,000 from the partnership proceeds. if the partnership earns $176,000, how much will jim receive?Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $140,000, $80,000, and $55,000, respectively. (a) Your answer is correct. Assume Sanford joins the partnership by investing $135,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Sanford, Capital Daggett, Capital Lamppin, Capital Pendergast, Capital + + + Debit 135000 Credit 102500 16250 9750 6500
- Mee Su is a partner in Hartford Partners, LLC. Her partnership capital balance at the beginning of the current year was $110,000, and her ending balance was $124,000. Her share of the partnership income is $10,500. What is her partner return on equity?Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn). Their capital balances are $80,000 and $120,000, respectively. The partnership generated net income of $30,000. What is Saturn's capital balance after closing the revenue and expense accounts to the capital accounts?Jerry and Sherry own and operate a partnership. Jerry’s capital balance is $50,000 and Sherry’s is $55,000. Jerry and Sherry decided to admit a new partner, Allison, to their partnership. By the terms of their partnership agreement, Jerry and Sherry share income/loss equally. Allison intends to contribute $40,000 cash to receive a twenty-five percent interest in the partnership Required: a. Revalue the partnership assets b. Determine the total equity of the partnership after the new partner is admitted c. Determine the new partner share of the total equity d. Determine the bonus resulting from Allison’s equity of her contribution e. Make journal entries to record Allison’s admission to the partnership. Please solve sub-part e. Show Your Work: