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

Similar questions

On March 1, 2021, Candace and Noreen formed a partnership with each contributing the following assets: NOREEN CANDACE Cash 140,000 60,000 Office Equipment 150,000 50,000 Building 450,000 Furniture and Fixtures 20,000The building is subject to a mortgage loan of P180,000, which is to be assumed by the partnership. The partnership agreement provides that Candace and Noreen share profits and losses at 30% and 70%, respectively. Assuming that the partners agreed to bring their respective capital in proportion to their P&L ratios, and using Noreen capital as the base. Compute the capital account balance of Noreen as of March 1, 2021 Compute the additional cash to be invested by Candace
The capital account for the partnership of N and Q at Oct. 31, 2021 follows:N, Capital-------- 80 ,000Q, Capital------- 40, 000Total -------------- 120, 000The partners share profits and losses in the ratio of 6:4, respectively. The partnership is in desperate need of cash, and the partners agreed to admit S as a partner with a 1/3 interest in the capital and profits and losses upon her investment of 30, 000. Immediately after admission, what should be the capital balances of N, Q, and S, respectively, assuming bonus is not to be recognized. *
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
G, E and N are partners with average capital balances during 2020 of P400,000, P200,000 and P150,000respectively. Partners receive 10% interest on their average capital balances. After deducting salaries ofP100,000 to G and P50,000 to E the residual profit and loss is divided equally. In 2020 the partnershipsustained a P99,000 loss after interest and salaries to partners.By what amount should G's capital account change?A. 107,000 C. 32,000B. 67,000 D. 17,000
Part 1 The capital accounts for the partnership of Luke and Mark at October 31, 2022 are as follows:Luke, capital 80,000Mark, capital 40,000TOTAL 120,000The partnership share profits and losses in the ratio of 6:4 respectively. The partnership is in desperate need of cash, and the partners agree to admit John as a partner with a 1/3 interest in the capital and profits and losses upon his investment of P30,000. If bonus is recorded: The capital credited to John is _____ What should be the capital balance of Luke immediately after the admission of John _____
On December 31 2021, the statement of financial position of ABC Partnership shows the following data with profit or loss sharing ratio of 2.3:5 Cash P15,000,000 Liabilities to others P20,000,000 Other non-cash asset 40,000,000 AA, Capital 15,000,000 BB, Capital 12,500,000 CC, Capital 7,500,000 On January 1, 2022, the partners decided to wind up the partnership affairs. During the winding up, liquidation expenses amounted to P2,000,000 were paid. Non-cash assets with book value of P30,000,000 were sold during January. 40% of total liabilities were also paid during January, P3,000,000 cash was withheld during January for future liquidation expenses. On January 31, 2022, partner AA received P10,000,000. How much is the proceeds from the sale of non-cash assets in January 2022?
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…
On December 31, 2030, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 5:1:4:Current Assets P 3,000,000 Total Liabilities P 1,000,000 Noncurrent Assets 4,000,000 A, Capital 2,200,000B, Capital 2,400,000C, Capital 1,400,000 On January 1, 2030, D is admitted to the partnership by investing P1,000,000 to the partnership for 10% capital interest. The total agreed capitalization of the new partnership is P6,000,000. What is the capital balance of C after the admission of D to the partnership?a. P1,160,000b. P1,6400,000c. P1,000,000d. P1,560,000
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.
On December 31, 2020, the Statement of Financial Position of ABC Partnership provided the following data with profit or loss ratio of 1:6:3: Current Assets Noncurrent Assets a. b. : 1,300,000 2,000,000 960,000 900,000 Total Liabilities A, Capital B, Capital C, Capital On January 1, 2021, D is admitted to the partnership by investing P1,000,000 to the partnership for 20% capital interest. C. 840,000 d. 1,200,000 300,000 1,400,000 If the all the assets of the existing partnership are properly valued, what is the capital balance of C after the admission of D? 700,000 900,000
For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?