On January 1, 2020, Balagtas, Cabanacan and Dagohoy formed apartnership with the following contributions:BalagtasP406,000435,000246,500CabanacanDagohoyThe partnership agreement of Balagtas, Cabanacan and Dagohoy providesfor the division of net income as follows:a. Cabanacan, who manages the partnership is to receive a salary ofP23,925 monthly.b. Each partner is to be allowed interest at 15% on beginning capital.C. Balance is to be divided 25:30:45On December 31, 2020, after the following partners' additional investmentsand capitál withdrawals, the partnership has a total capital of P1,413,750Additional Investments WithdrawalsP139,200Balagtas87,000P130,500104,400CabanacanDagohoyWhat are the capital balances of the partners on December 31, 2020?BalagtasP598,487.50 P703,134.00 P112,128.50b.CabanacanDagohoya.P53,287.50 P311,634.00 P(29,971.50)P459,287.50 P746,634.00 P216,528.50d. P577,281.25 P709,267.50 P127,201.25С.------.

Partnership capital accounts are maintained to record the capital contributed by the partners, to…

Answered: On January 1, 2020, Balagtas, Cabanacan…

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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Cc. 187.
A and B formed a Partnership on January 1, 2020. A contributed capital of P50,000, while B contributed capital of P30,000. The Partnership agreement provides for the following: o Capital accounts are to be credited annually with interest at 5% of the beginning capital. o Partner B is to be paid salary of P2,000 a month. o Partner B is to receive a bonus of 10% based on the net income. The Partnership's income statement for the year ended is as follows: Revenues P101,000 30,000 71,000 Expenses (including salary, interest, and bonus) Net income Determine the amount of bonus.
GP Partnership, a calendar-year partnership, is owned by Grant Gilbert (60%) and Peter Paulson (40%). At the beginning of 2020, Grant’s basis in his GP Partnership interest was $480,000 and Peter’s basis in his GP Partnership interest was $320,000. During 2020, GP Partnership had the following items of income and (expense): Gross receipts from sales 2,500,000 Cost of goods sold (1,200,000) Long-term capital gain 45,000 Tax-Exempt Interest 7,000 Advertising expenses (128,000) MACRS Depreciation (428,000) Office expenses (75,000) Charitable Contribution (11,000) Qualified dividends income 30,000 Rent expenses (109,000) Salaries (286,000) In addition to the above items, GP Partnership’s liabilities decreased by $60,000. Please show your work and explain your…
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,100, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 91,500 7,500 (53,500) (15,600) (11,100) (5,300) 5,450 (5,100) Note: Negative amounts should be indicated by a minus sign. Required: a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). Complete this question by entering your answers in the tabs below. Required A1 Required A2 How much ordinary income (loss) is allocated to Gary for the year? Note: Round your intermediate computations to the nearest…
how do i calculate remainder to allocate?
The partnership contract of Ali & Yousif LLP provided for salaries of $45,000 to Ali and $35,000 to Yousif, with any remaining income or loss divided equally. During 2005, pre-salaries income of Ali & Yousif LLP was $100,000. During 2020, Ali's share of net income is: O a. 55000 O b. 37000 O c. 35000 O d. 45000
The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: Jones, the managing partner, receives a bonus equal to 15 percent of the business’s profit. Each partner receives 14 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones $ 100,000 King 200,000 Lane 300,000 The partnership earned $48,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners. (Loss amounts should be indicated with a minus sign.)
Farmer and Taylor formed a partnership with capital contributions of $245,000 and $295,000, respectively. Their partnership agreement calls for Farmer to receive a $79,000 per year salary allowance. The remaining income or loss is to be divided equally. Assuming net income for the current year is $189,000, the journal entry to allocate net income is: dit Fo Debit Income Summary, $189,000; Credit Farmer, Capital, $94,500; Credit Taylor, Capital, $94,500. Debit Income Summary, $189,000; Credit Farmer, Capital, $166,000; Credit Taylor, Capital, $23,000. Debit Income Summary, $189,000; Credit Farmer, Capital, $48,840; Credit Taylor, Capital, $140,160. Debit Income Summary, $189,000; Credit Farmer, Capital, $134,000; Credit Taylor, Capital, $55,000. Debit Income Summary, $189,000; Credit Taylor, Capital, $134,000; Credit Farmer, Capital, $55,000.
On February 1, 2020, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $89,000 cash and Xie contributed land valued at $129,000 and a small building valued at $189,000. Also, the partnership assumed responsibility for Xie’s $139,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $99,000, both are to receive an annual interest allowance of 12% of their original capital investments, and any remaining profit or loss is to be shared equally. On November 20, 2020, Williams withdrew cash of $69,000 and Xie withdrew $54,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $169,000.Required:1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the Income…

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