Problem 8-40 (LO 8-4) Mabel, Loretta, and Margaret are equal partners in a local restaurant. The restaurant reports the following items for the current year. Revenue Business expenses Investment expenses $500,000 260,000 129,000 Short-term capital gains Short-term capital losses 114,000 (159,900) Each partner receives a Schedule K-1 with one-third of the preceding items reported to her. Required: How must each individual report these results on her Form 1040? Note: Do not round any division. Round your final answer to the nearest whole dollar value. Negative amounts should be indicated by a minus sign. Schedule A Schedule D Schedule E Amount

Problem 8-40 (LO 8-4) Mabel, Loretta, and Margaret are equal partners in a local restaurant. The restaurant reports the following items for the current year. Revenue Business expenses Investment expenses $500,000 260,000 129,000 Short-term capital gains Short-term capital losses 114,000 (159,900) Each partner receives a Schedule K-1 with one-third of the preceding items reported to her. Required: How must each individual report these results on her Form 1040? Note: Do not round any division. Round your final answer to the nearest whole dollar value. Negative amounts should be indicated by a minus sign. Schedule A Schedule D Schedule E Amount

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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Larry, Curly and Moe formed the HydroCarpets partnership on January 1 of the current year. The partners invested assets and liabilities into the partnership as follows: Larry: Cash $ 55,000 Accounts Receivable 20,000 Curly: Land 20,000 Building 180,000 Mortgage payable 95,000 Moe: Cash 35,000 Office equipment 25,000 During the first year of business the net income was $141,000. 1) Prepare the journal entries to record the partnership setup 2) Prepare net income allocation using following plans separately. (please note that you need to show me the calculation formula and steps) Plan1: on a 3:3:4 ratio of partnership agreement Plan2: on an original investment ratio respectively Plan3: Interest allowance of 10% on initial investments, salary allowance of $35,000 to Larry, $40,000 to Curly and $45,000 to Moe, with any remaining balance to be shared equally among the three partners 3) Each partner withdrew $30,000 cash from the partnership during the year. Please prepare a statement of…
Can I please get help with practice 6.4 Required information Skip to question [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $416,100. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions. Appropriation of profits General Journal Allocate $416,100 net income in the ratio of their beginning capital investments.Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar. Supporting Computations Percentage of Total Equity × Income Summary Allocated Income to Capital Ries × Bax × Thomas × Record the entry to close the income summary account assuming the partners have…
Entries for Allocation of Net Income Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $100,000 and Wilson invested $25,000. For the fiscal year ended June 30, 20-2, a net income of $79,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions: Income to be allocated $fill in the blank 1 Spurlock Wilson Total 1. There is no agreement concerning the distribution of net income. $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally. $fill in the blank 5 $fill in the blank 6 $fill in the blank 7 3. Spurlock and Wilson are to receive a salary allowance of $33,000 and $24,000, respectively.The remaining net income is to be divided equally. $fill in the blank 8 $fill in the blank 9 $fill in the blank 10 4. Each…
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