On October 1, 2024, Apollo, Brett, and Clark formed the A, B and C partnership. Apollo contributed $27,300; Brett, $42,900; and Clark, $59,800. Apollo will manage the store; Brett will work in the store three-quarters of the time; and Clark will not work in the business. Read the requirements LOADING... . Requirement 1. Compute the partners' shares of profits and losses under each of the following plans: a. Net loss for the year ended September 30, 2025, is $55,000, and the partnership agreement allocates 70% of profits to Apollo, 15% to Brett, and 15% to Clark. The agreement does not discuss the sharing of losses. (Use parentheses or a minus sign for loss amounts. Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate cell.) A, B and C Allocation of Profits and Losses Apollo Brett Clark Total a. Net income (loss) Capital allocation: Apollo Brett Clark Total capital allocation Net income (loss) remaining for allocation Net income (loss) allocated to each partner b. Net income for the year ended September 30, 2025, is $97,000. The first $20,000 is allocated on the basis of relative partner capital balances. The next $44,000 is based on services, with $34,000 going to Apollo and $10,000 going to Brett. Any remainder is shared equally. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.) A, B, and C Allocation of Profits and Losses Apollo Brett Clark Total b. Net income (loss) Capital allocation: Apollo Brett Clark Total capital allocation Net income (loss) remaining for allocation Sharing of next portion based on service: Net income (loss) remaining for allocation Remainder shared equally: Net income (loss) remaining for allocation Net income (loss) allocated to each partner Requirement 2. Using plan b, prepare the partnership statement of partners' equity for the year ended September 30, 2025. Assume Apollo, Brett, and Clark each withdrew $8,000 from the partnership during the year. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate cell.) A, B, and C Statement of Partners' Equity For the Year Ended September 30, 2025 Apollo Brett Clark Total Choose from any list or enter any number in the input fields and then continue to the next question.

On October 1, 2024, Apollo, Brett, and Clark formed the A, B and C partnership. Apollo contributed $27,300; Brett, $42,900; and Clark, $59,800. Apollo will manage the store; Brett will work in the store three-quarters of the time; and Clark will not work in the business. Read the requirements LOADING... . Requirement 1. Compute the partners' shares of profits and losses under each of the following plans: a. Net loss for the year ended September 30, 2025, is $55,000, and the partnership agreement allocates 70% of profits to Apollo, 15% to Brett, and 15% to Clark. The agreement does not discuss the sharing of losses. (Use parentheses or a minus sign for loss amounts. Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate cell.) A, B and C Allocation of Profits and Losses Apollo Brett Clark Total a. Net income (loss) Capital allocation: Apollo Brett Clark Total capital allocation Net income (loss) remaining for allocation Net income (loss) allocated to each partner b. Net income for the year ended September 30, 2025, is $97,000. The first $20,000 is allocated on the basis of relative partner capital balances. The next $44,000 is based on services, with $34,000 going to Apollo and $10,000 going to Brett. Any remainder is shared equally. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.) A, B, and C Allocation of Profits and Losses Apollo Brett Clark Total b. Net income (loss) Capital allocation: Apollo Brett Clark Total capital allocation Net income (loss) remaining for allocation Sharing of next portion based on service: Net income (loss) remaining for allocation Remainder shared equally: Net income (loss) remaining for allocation Net income (loss) allocated to each partner Requirement 2. Using plan b, prepare the partnership statement of partners' equity for the year ended September 30, 2025. Assume Apollo, Brett, and Clark each withdrew $8,000 from the partnership during the year. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate cell.) A, B, and C Statement of Partners' Equity For the Year Ended September 30, 2025 Apollo Brett Clark Total Choose from any list or enter any number in the input fields and then continue to the next question.

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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Question

October

2024,

Apollo,

Brett,

and

Clark

formed the A, B and C partnership.

Apollo

contributed

$27,300;

Brett,

$42,900;

and

Clark,

$59,800.

Apollo

will manage the store;

Brett

will work in the store three-quarters of the time; and

Clark

will not work in the business.

Read the

requirements

Requirement 1. Compute the partners' shares of profits and losses under each of the following plans:

a. Net loss for the year ended

September

30,

2025,

$55,000,

and the partnership agreement allocates

70%

of profits to

Apollo,

15%

Brett,

and

15%

Clark.

The agreement does not discuss the sharing of losses. (Use parentheses or a minus sign for loss amounts. Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate cell.)

A, B and C
Allocation of Profits and Losses
		Apollo	Brett	Clark	Total
a.	Net income (loss)
	Capital allocation:
	Apollo
	Brett
	Clark
	Total capital allocation
	Net income (loss) remaining for allocation
	Net income (loss) allocated to each partner

b. Net income for the year ended

September

30,

2025,

$97,000.

The first

$20,000

is allocated on the basis of relative partner capital balances. The next

$44,000

is based on services, with

$34,000

going to

Apollo

and

$10,000

going to

Brett.

Any remainder is shared equally. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.)

A, B, and C
Allocation of Profits and Losses
		Apollo	Brett	Clark	Total
b.	Net income (loss)
	Capital allocation:
	Apollo
	Brett
	Clark
	Total capital allocation
	Net income (loss) remaining for allocation
	Sharing of next portion based on service:
	Net income (loss) remaining for allocation
	Remainder shared equally:
	Net income (loss) remaining for allocation
	Net income (loss) allocated to each partner

Requirement 2. Using plan b, prepare the partnership statement of partners' equity for the year ended

September

30,

2025.

Assume

Apollo,

Brett,

and

Clark

each withdrew

$8,000

from the partnership during the year.

Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate cell.)

A, B, and C
Statement of Partners' Equity
For the Year Ended September 30, 2025
	Apollo	Brett	Clark	Total

Choose from any list or enter any number in the input fields and then continue to the next question.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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