Ozzello Property Management is organized as a partnership. The owners, Lorenzo, Erwin, and Michelle, share profits and losses 30:30:40. Ozzello has the following results for the current year: Management fees $211,400 Long-term gain on sale of investments 21,700 Short-term loss on sale of investments 3,000 Salaries paid to employees 65,700 Office rent 43,300 Office expenses 20,100 What is the business income of each partner?

Ozzello Property Management is organized as a partnership. The owners, Lorenzo, Erwin, and Michelle, share profits and losses 30:30:40. Ozzello has the following results for the current year: Management fees $211,400 Long-term gain on sale of investments 21,700 Short-term loss on sale of investments 3,000 Salaries paid to employees 65,700 Office rent 43,300 Office expenses 20,100 What is the business income of each partner?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

s
2. Rene, Michael, and Kevin are partners in an accounting firm. Their capital accountbalance at year-end were Rene, P90,000; Michael, P120,000; and Kevin,P160,000. They share profit and losses on a 4:4:2 ratio after considering thefollowing terms: a. Kevin is to receive a bonus of 10% of net income. b. Interest of 5% shall be paid on partner’s capital. c. Salaries of P8,000 and P10,000 shall be paid to partners Rene and Kevinrespectively. Assuming a net income of P84,000 for the year. REQUIRED: Prepare the following:A. Profit or Loss Distribution TableB. Corresponding JOURNAL ENTRY to distribute profit or loss
The following data pertain Ali,Saeed partnership for the first year of operations: Revenues OR360,000 Cost of goods sold OR150,000 Salaries expenses OR25,000 Interest expenses OR3,000 OR8,000 (for Insurance policy two years) The net income for the first year will be: Select one: a. OR178,000 b. OR174,000 C. OR210,000 d. OR182,000
ASSUMING GOCE & OLIVEROS PARTNERSHIP are partners IN TRADE. the 2020 financial records. SERVICE REVENUE 4,490,000; COST OF SERVICE 1,610,000; OPEX 800,000 THE PROFIT AND LOSS IS DISTRIBUTED 55% GOCE AND 45% OLIVEROS. GOCE IS ALSO ENGAGED IN BUSINESS WITH THE FOLLOWING DATA FOR THE YEAR GROSS SALES 2,500,000; COST OF SALES 1,250,000 AND OPEX 550,000. HOW MUCH IS THE INCOME TAX PAYABLE OF GOCE & OLIVEROS PARTNERSHIP? DISTRIBUTABLE SHARE OF OLIVEROS? FINAL TAX OF GOCE? FINAL TAX OF OLIVEROS? Use Philippine tax lax
Hosea, Riziki and Zarika are trading as Horizon enterprises. They share profits and losses in the ratio of 2:2:1 respectively. The following is the statement of comprehensive income for the partnership for the year ended 31 December 2018: Shs. Shs. Sales Opening stock Purchases Closing stock Gross profit Less: Salaries Repairs and maintenance Interest Goodwill Depreciation Mortgage repayment Insurance Auditee Legal fee Equipment purchase Rent and rates Net profit 300,000 4,000,000 (600,000) 900,000 100,000 480,000 198,000 142,000 200,000 384,220 315,780 100,000 200,000 18,0000 8,000,000 (3700,000) 4,300,000 (3,200,000) 1,100,000 Additional information 1. Opening inventory and closing inventory were overvalued by 30%. 2. Included in interest expense is interest on capital to partners of Sh. 80,000. This amount was to be shared in the profit sharing ratio. The balance of interest relates to an…
P,Q and R were carrying on a business in partnership, sharing profits and losses in the ratio of 5:3:2 respectively. The firm earned a profit of $ 3,60,000 for the accounting year ended 31* March, 2014 on which date the firm's Balance Sheet stood as follows: BALANCE SHEET as on 31st March, 2014 Liabilities $ Assets P's Capital Q's Capital R's Capital Creditors Outstanding Expenses 7,00,000 Freehold Land and Building 5,70,000 Machinery 4,30,000| Furniture & Fixtures 79,400 | Stock 4,900 Debtors 8,00,000 3,50,000 1,02.000 2,98,800 1,60,000 73,500 Cash at Bank 17,84,300 17,84,300 P died on 31st August, 2014. According to firm's partnership deed, in case of death of a partner: са (i) (ii) Assets and Liabilities have to be revalued by an independent valuer. Goodwill is to be calculated at two years' purchase of average profits for the last three completed accounting years and the deceased Partner's Capital Account is to be credited with his share of goodwill. (iii) The share of the deceased…
Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively. The following was their balance sheet as at 31 December 2018: NBV 24 10,000 4,000 4.000 Cost Depreciation. Non-Current Assets Premises 42,000 14,000 6.000 32,000 10,000 2.000 44.000 Motor Vehicles Furniture and Fittings 62.000 18,000 Current Assets Inventory 24,000 Trade Receivables 6,800 30.800 48.800 Capital and Liabilities Capitals: 7,000 7,000 Mary Jane Susan 4.000 18,000 Current A/es Mary Jane 6,800 5,000 3.400 Susan 15.200 33,200 6,000 Loan from Toby Current Liabilities: Trade Payables Bank overdraft 7,800 1.800 9,600 48.800 On 31 December 2018 the partners decide to terminate the business. The following took place: i. Mary took over one of the motor vehicles for $5,000 Stock was taken over by Susan for $12,000 Premises, inventory, the remaining motor vehicles, fumiture and fittings were sold for $9000, $12000, $1000 and S1000 respectively Receivables realised $6,450 and Payables…
On Nov. 8, 2021, Cadag who has her own retail business and Napay, decided to form a partnership wherein they will all divide profits in the ratio of 40:60, respectively. The statement of financial position of Cadag is as follows: Cadag Marketing Statement of Financial Position November 8, 2021 ASSETS Cash Accounts Receivable Less: ADA P4, 000.00 P160, 000.00 16, 000.00 144, 000.00 200, 000.00 Inventory Equipment Less: Accumulated Depreciation Total Assets 50, 000.00 10, 000.00 40, 000.00 P388, 000.00 Liabilities and Capital Accounts Payable Cadag, Capital Total Liabilities and Capital 36, 000.00 352, 000.00 P388, 000.00 Conditions agreed upon before the formation of the partnership: a. The accounts receivable of Cadag is estimated to be 70% realizable. b. The Accumulated Depreciation of the equipment will be increase by P10, 000.00 c. The accounts payable will be assumed by the partnership. d. The capital of the partnership is based on the adjusted capital balance of Cadag. Napay is to…
answer the requirements with complete solution
(2) Example 3 (Equity: Business Ownership): Hanna, Ursula, Thomas and Günther engage in a partnership named "Chick Enterprise. // Chick generates a net income of 75.000 $. 1) Ursula, Thomas and Günther get salary allowances for thei extra professional service for At clients, as follows: 12.000$ for Ursula; 9.000 $ for Thomas and 3.000 for Günther respectively. 11) Average capital balances during the year are as follows: Hanna Ursula Thomas Gunther 42.000 $ 4.200 $ 12.600 $ 25.200 $ Partners agreed for a 7.25 interest allowance for each partner at the end of the year. 84.000 $ [II) After salary & interest allowances, the remainder will be allocated from a fixed ratio of [5:2:4:1] for [Hanna: Ursula: Thomas: Günther Find each partner's capital (equity) and do the closing entry Example 4 (Equity: Business Ownership): Royal Inc. posesses a capital structure as follows: Luis 20 Hector 10 Sanchez 10 (in.000 $) 2) On March 1, Luis decides to sell 10 $ of his share to Martin. 3) On May 1,…
Partners R and S receive a salary allowance of P3,000 and P7,000, respectively, and share the remainder equally. If the company earned P4,000 during the period, the entry to close the income or loss into their capital accounts is: a. Income Summary R, Capital S, Capital b. Income Summary S, Capital c. Income Summary R, Capital S, Capital d. Income Summary R, Capital S, Capital Ο Ο Ο Ο O A O D 10,000 4,000 14,000 6,000 3,000 7,000 4,000 7,000 7,000 3,000 3,000
Instructions: Please answer it with complete solution. Thank you so much!! Rachelle, Patrick, and Lorreyn formed the RPL Professional Partnership on April 1, 20X2, by contributing capital. They agreed that Lorreyn would receive P20,000 as manager of the firm, and the remainder will be divided according to the profit ratio of 34%, 44%, 22%, respectively. At the end of the month, the company had a net loss of P900,000. Discuss how the loss shall be distributed in no more than five (5) sentences.