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- Give only typing answer with explanation and conclusion Rosa has a flow-through of net income from a general partnership of $160,000 for 2020. What is the amount of her self-employment tax, rounded to the nearest dollar? A) $21,120 B) $24,480 C) $21,360 D) $20,334Part AMrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine decided to enter into a partnership agreement with Mr. Rain, thus the status of the business was changed in 2021. In 2022, the partnership income statement for Shine & Rain was as follows: Income Statement for the year ended 31 December 2022 $ $ Revenue 11,600,000Expenses Salaries & Wages 7,600,000Employer NIS Contribution 1,400,000Rent and Rates 2.400,000Interest 500,000Maintenance 120,000Depreciation…Ethan and Louis had partnership and shared incomes and losses based on the agreement that gave Ethan a salary allowance of $115,000 and Louis $90,000 with any unallocated income or loss shared 3:2 Prepare the entry and at December 31, 2011. the net income having a debit balance of $80,000
- Terms of the partnership agreement: 1.1 The partners are entitled to a salary of R18 000 each per month. 1.2 Zozi and Sethu share profits in the ratio of 1:1 respectively. 2. Year-end adjustments: 2.1 An outstanding debt of R2 200 is irrecoverable and must be written off. The allowance for credit losses must be increased to R6 500. 2.2 An amount of R4 500 owed by a debtor was written off as irrecoverable during the year ended 29 February 20.1. The debtor has settled the amount previously written off in full on 25 February 20.2. This transaction is still to be recorded in the books of the business. 2.3 Depreciation for the year must still be provided as follows: Office equipment: 20% according to diminishing balance method. Vehicles: 15% according to straight-line method and have a R15 000 residual value. 2.4 Inventories on hand on 28 February 20.1: Merchandise R45 100 2.5 Only 65% of salaries were paid to partners during…Juan and Pedro’s partnership agreement shows that they will receive a salary of P150,000 and P100,000, respectively. Should there be a remainder, such will be divided based on their average capital balances. Below shows information in their respective capital balances:Juan, capital ending balance – P 3,000,000Debits: June 1 - P 500,000Credits: March 30 – P 1,000,000Credits: October 30 – P 500,000 Pedro, capital ending capital balance – P 4,500,000Credits: May 1 – P 1,000,000Credits: August 31 – P 1,000,000Income for the year amounted to P 300,000. How much profit will be distributed to Juan?allowance of $6,000 per month to partner C. The articles of partnership provide for a salary If C withdrew only $4,000 per month, would a partner's cash withdrawal in lieu of edited to interest from another Dartner and (b) by contribu- tion of assets to the partnership. accoi what 9. Why is it important to state all partnership assets in terms of current prices at the time of the admission of a new partner? 10. Why might a partnership pay a bonus to a newly admitted partner? pactice Exercises PE 12-1A Journalizing partner's original investment Catrina Santana contributed a patent, accounts receivable, and $23,000 cash to a parthersinpa The patent had a book value of $8,000. However, the technology covered by the patent ap peared to have significant market potential. Thus, the patent was appraised at $85,000. The accounts receivable control account was $38.000, with an allowance for doubtful accounts of $2,000. The partnership also assumed a $10,000 account payable owed to a Santana…
- Mr. A and Mr. B start a business on 01st May,2021, with capital of 2,500,000 and 300,000. According to agreement Mr. A is entitled for a salary of 40,000 whereas another partner is entitled for 35,000. Mr. B gave a loan to the business and interest on capital is allowed 5% p.a. During their first fiscal year of partnership, they earned a net profit of Rs. 500000. Required: Profit and Loss appropriation account to allocate the profit and necessary journal entries.Current Attempt in Progress The A and B partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $80900 for A and $40100 for B. At the beginning of the year, A's capital account had a balance of $79300, while B's capital account had a balance of $71000. Profit for the year was $96000. The balance of B's capital account at the end of the year after closing is $40100. $121000. $68400. Ⓒ$98600.Retiring partner A is to receive $120,000 for his partnership interest spread over a 4-year period and paid in installments of $30,000 per year. If A's basis is $64,000 and the payments are considered to be Section 736(b) payments, how much must A report in Year 1 if no election is made?
- Find Bonus, Interest, and Reminder to allocate for each 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 10 percent of the business’s profit. Each partner receives 10 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones $ 80,000 King 160,000 Lane 240,000 The partnership earned $40,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partnersHimanshu withdrews Rs. 2,500 at the end Month of each month. The Partnership deed provides for charging the interest on drawings @ 12% p.a. Calculate interest on Himanshu’s drawings for the year ending 31st December, 2017.Terms of the partnership agreement: 1.1 The partners are entitled to a salary of R18 000 each per month. 1.2 Zozi and Sethu share profits in the ratio of 1:1 respectively. 2. Year-end adjustments: 2.1 An outstanding debt of R2 200 is irrecoverable and must be written off. The allowance for credit losses must be increased to R6 500. 2.2 An amount of R4 500 owed by a debtor was written off as irrecoverable during the year ended 29 February 20.1. The debtor has settled the amount previously written off in full on 25 February 20.2. This transaction is still to be recorded in the books of the business. 2.3 Depreciation for the year must still be provided as follows: Office equipment: 20% according to diminishing balance method. Vehicles: 15% according to straight-line method and have a R15 000 residual value. 2.4 Inventories on hand on 28 February 20.1: Merchandise R45 100 2.5 Only 65% of salaries were paid to partners during…