### Partnership of Pelosi, Trump, Schiff, and DeSantis (PTSD) - Capital Accounts Overview#### Capital Accounts as of December 31st, 2022- **Pelosi:** $500,000- **Trump:** $500,000- **Schiff:** $200,000- **DeSantis:** $200,000#### Partnership Agreement Details- **Profit Distribution:** - Pelosi: 30% - Trump: 30% - Schiff: 20% - DeSantis: 20% - **Loss Distribution:** Divided equally among partners. - **Interest on Capital:** Partners receive 10% interest on their beginning-of-the-year capital accounts.- **Salaries:** - Schiff: $35,000 - DeSantis: $35,000- **Withdrawals:** - Pelosi: $50,000 annually for beauty parlor treatments. - Trump: $45,000 annually for hair care products.#### Reported Income for 2023, 2024, and 2025- **2023:** $400,000- **2024:** $150,000- **2025:** $350,000#### Requirements- **For Each Year Determine:** - **A) Allocation of Partnership Profits** - **B) Each Partner's Ending Capital Account Balance**This financial overview provides the foundation for calculating profit allocations and capital balances for each partner annually, considering the partnership's agreement terms and the incomes reported.

A partnership is a form of business where two or more people undertake a venture for the common…

On December 31st 2022 the partnership of Pelosi, Trump, Schiff, and DeSantis (PTSD) have the following capital accounts PELOSI TRUMP SCHIFF DESANTIS In the partnership agreement: $500,000 $500,000 2023 2024 2025 $200,000 $200,000 profits are divided: Pelosi 30%, Trump 30% Schiff and DeSantis 20% each Losses are divided equally Partners receive interest of 10% on their beginning of the year capital accounts Schiff and DeSantis receive salaries of $35,000 each Pelosi makes annual withdrawls of $50,000 for beauty parlor treatments Trump makes annual withdrawls of $45,000 for hair care products The partnership reported the following income for 2023, 2024 and 2025 (before partner interest or partner salaries) $400,000 $150,000 $350,000 REQUIRED: FOR EACH YEAR DETERMINE A) ALLOCATION OF PARTNERSHIP PROFITS B) EACH PARTNERS ENDING CAPITAL ACCOUNT BALANCE

On December 31st 2022 the partnership of Pelosi, Trump, Schiff, and DeSantis (PTSD) have the following capital accounts PELOSI TRUMP SCHIFF DESANTIS In the partnership agreement: $500,000 $500,000 2023 2024 2025 $200,000 $200,000 profits are divided: Pelosi 30%, Trump 30% Schiff and DeSantis 20% each Losses are divided equally Partners receive interest of 10% on their beginning of the year capital accounts Schiff and DeSantis receive salaries of $35,000 each Pelosi makes annual withdrawls of $50,000 for beauty parlor treatments Trump makes annual withdrawls of $45,000 for hair care products The partnership reported the following income for 2023, 2024 and 2025 (before partner interest or partner salaries) $400,000 $150,000 $350,000 REQUIRED: FOR EACH YEAR DETERMINE A) ALLOCATION OF PARTNERSHIP PROFITS B) EACH PARTNERS ENDING CAPITAL ACCOUNT BALANCE

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Partnership Income Allocation Whitman and Greene are partners in a real estate venture. At January…

A: Individual capital accounts for each partner show their original contributions as well as any…

Q: The Prince-Robbins partnership has the following capital account balances on January 1, 2024:…

Q: Required: Prepare schedules that compute the balances in each partner's capital account at the end…

Q: The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash Noncash…

A: A partnership is a form of business where two or more people with some common objective of starting…

Q: Prince, Capital Robbins, Capital Prince is allocated 60 percent of all profits and losses with the…

A: Computation of goodwill : Jeffrey's investment = $49,000 Goodwill = (Jeffrey's investment/interest…

Q: During the 2020 income year, the Timms Brothers Partnership recorded a net income of $300,000. The…

A: Partnership refers to an agreement where two or more people come together for a common goal. The…

Q: The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio,…

A: A partnership is a form of business organisation wherein two or more persons come together to…

Q: Use the following information for numbers 13 to 18. The capital accounts of Sonia and Olga…

A: " Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda…

A: Partnership is the association of two or more persons who have agreed to share profit and losses in…

Q: Problem 15. On December 31, 2020, the Statement of Financial Position of ABC Partnership with…

A: Introduction The term "liabilities" in accounting refers to any sort of financial debt that a…

Question

### Partnership of Pelosi, Trump, Schiff, and DeSantis (PTSD) - Capital Accounts Overview

#### Capital Accounts as of December 31st, 2022
- **Pelosi:** $500,000
- **Trump:** $500,000
- **Schiff:** $200,000
- **DeSantis:** $200,000

#### Partnership Agreement Details
- **Profit Distribution:**
- Pelosi: 30%
- Trump: 30%
- Schiff: 20%
- DeSantis: 20%

- **Loss Distribution:** Divided equally among partners.

- **Interest on Capital:** Partners receive 10% interest on their beginning-of-the-year capital accounts.

- **Salaries:**
- Schiff: $35,000
- DeSantis: $35,000

- **Withdrawals:**
- Pelosi: $50,000 annually for beauty parlor treatments.
- Trump: $45,000 annually for hair care products.

#### Reported Income for 2023, 2024, and 2025
- **2023:** $400,000
- **2024:** $150,000
- **2025:** $350,000

#### Requirements
- **For Each Year Determine:**
- **A) Allocation of Partnership Profits**
- **B) Each Partner's Ending Capital Account Balance**

This financial overview provides the foundation for calculating profit allocations and capital balances for each partner annually, considering the partnership's agreement terms and the incomes reported.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Partnership - Introduction

VIEW

Step 2: Allocation of partnership profits

VIEW

Step 3: Ending capital account balance

VIEW

Step by step

Solved in 3 steps with 6 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The E.N.D. partnership has the following capital balances as of the end of the current year: $ 280,000 240,000 210,000 190,000 $ 920,000 Pineda Adams Fergie Gomez Total capital Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $262,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $305,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) Capital Balance a. Pineda Adams Gomez b. Adams Fergie Gomez
ON Tom & faith are in a partnership ratio of 3/5 sharing profits and losses in the for Tom and 2/5 for faith The partnership deed provides for interest on capital at the rate 10% 5% and interest on drawings per annum The partners are entitled to annual Salaries of $2000 and $1000 for Tom & faith respectively The following balance were extracted from the books of the partnership as at 30th Sept 2026 Capital accounts 14.000 10.000 Iom faith Current accounts 4,000 laith 2.500 Drawings a 3.800 Tom Farth 2.200 Notes: During the year the partners made a not profit of 15,000 for the business: Prepare the partner's current account as of 30th Sept 2020 0 bencils T ol picks bef
Activity 4: On January 2, 2020, Jenny and Kenny formed a partnership. The following assets were contributed by each of the partners: LOUKS UN Kenny P 60,000 10,000 180,000 Jenny 40.000 Cash Inventory Equipment 60,000 The equipment of Kenny is subject to a mortgage of P50,000 which the partnership has assumed. The partnership agreement specifies that each partner receives 10% interest on her beginning capital balance. Jenny receives an annual salary of P15,000; Kenny receives an annual salary of P20,000. The remaining profit or loss is divided using 2:3 ratio with 2 parts assigned to Jenny and 3 parts assigned to Kenny. During 2020, the partnership had an income of P185,000. Assume there were no drawings during 2020. On January 2, 2021, Jenny and Kenny decide to admit a new partner, Lenny, for a 1/6 interest in the firm for P175,000. The bonus method is used to record the admission of the new partner. After admitting the new partner the partnership agreement is amended as follows: Each…
Soultion for Part B Part B (2020) a. On December 31, 2020 new partner D invests other assets into the partnership for a one-quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make up the difference. At December 31, 2020, the partners' capital balances are as follows: A $200,000 B 180,000 C 190,000 $ 570,000 Fair value of other assets from D $50,000 b. Immediately after this, partner C withdraws from the partnership. She is paid in cash the balance in her capital account plus a bonus, contributed equally from the capital balances of A, B, and D. Bonus paid to C $ 18,000 Required 5 Prepare necessary adjusting entries at December 31, 2020 to record the admission of…
Need help with parts C through F
The Prince-Robbins partnership has the following capital account balances on January 1, 2024: Prince, Capital Robbins, Capital $ 150,000 110,000 Prince is allocated 60 percent of all profits and losses with the remaining 40 percent assigned to Robbins after interest of 10 percent is given to each partner based on beginning capital balances. On January 2, 2024, Jeffrey invests $76,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After this transaction, 10 percent interest is still to go to each partner. Profits and losses will then be split as follows: Prince (50 percent), Robbins (30 percent), and Jeffrey (20 percent). In 2024, the partnership reports a net income of $36,000. Required: 1. Prepare the journal entry to record Jeffrey's entrance into the partnership on January 2, 2024. 2. Prepare a schedule showing how the 2024 net income allocation to the partners should be determined.