Question 28During the current year, MAC Partnership reported the following items of receipts and expenditures:7 pts$400,000 Sales, $80,000 utilities and rent, $100,000 salaries to employees, $10,000 of interest income, $40,000 of long-term capital gains, $20,000 guaranteed payment to partnerAntonio, and a distribution of $30,000 to partner Carl.Antonio is a 25% general partner. Based on this information, what items will be reflected on Antonio's Schedule K-1?(Clearly label each individual item, including the $ amounts)Edit Format Table12pt ✓ Paragraph vBIUAT² || LH-P #くくToPA√xO words

The total income of the partnership is calculated by adding all the income items. In this case, the…

Answered: Question 28 During the current year,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Can I please get help with this practice question? 6.1 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. 1. The partners did not agree on a plan, and therefore share income equally. Record the entry to close the income summary account assuming the partners did not agree on a plan, and therefore share income equally. Note: Enter debits before credits. Date General Journal Debit Credit December 31
Vikram Bhai
Scenario B: Partners A, B, and C operate a business with profit sharing agreement ratios of 5: 3:2, and capital balances of $300,000, $200,000, and $100,000 respectively. The total income for the year is $180,000. Each partner receives a fixed salary of $50, 000, and they are entitled to earn 10% interest on their capital balances. Calculate the total income allocated to Partner
D, E and F are partners sharing profits and losses in the ratio 5:3:2, respectively. The December 31, 2019 balance sheet of the partnership before any profit allocation is summarized as follows: ASSETS: Cash 90,000 Inventories 40,000 Furniture & fixtures – net 50,000 Patent 15,000 Total assets 195,000 LIABILITIES AND CAPITAL: Accounts payable 4,000 Loan from F 3,000 D, capital 70,000 E, capital 60,000 F, capital 30,000 F, drawings (2,000) Income summary 30,000 Total liabilities and capital 195,000 On January 1, 2020, F has decided to retire from the partnership and by mutual agreement among the partners, the following have been arrived at: Inventories amounting to 5,000 is considered obsolete and must be written off. Furniture and fixture should be adjusted to its current value of 65,000. The patent is considered worthless and must be written off immediately before the…
Appropriation of profits General Journal Allocate $412,200 net income by providing annual salary allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally, Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Balance after interest and salaries Balance allocated equally Balance of income Shares of the partners Ries $ 38,000 $ 5,600✔ 45,600 x Bax 33,000 $ 7,200 89,200 $ 40,200 Thomas 45,000 8,000 $ 53,000 Total 116,000 (116,000) 20,800 (136,800) 45,600 $ (182,400) rnal
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 partners
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…
A-1
Please solve this question
Question #2: Toto profit 56,000 The ABCD Partnership has the following balance sheet at January 1, 2012, prior to the admission of new partner, Eden. Cash and current assets Land Building and equipment Total $ 39,000 234,000 130,000 $ 403,000 Liabilities Adams, capital Barnes, capital Cordas, capital Davis, capital Total $ 52,000 26,000 52,000 117,000 156,000 $ 403,000 Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Eden made his investment, what were the individual capital balances?
ii.9
A partnership has the following accounting amounts: (1) Sales $70,000 (2) Cost of Goods Sold = $40,000 (3) Operating Expenses = $10,000 (4) Salary allocations to partners = $13,000 (5) Interest paid to banks = $2,000 (6) Partners' withdrawals = $8,000 Partnership net income (loss) is ____. One says 18,000 other says (3,000) a. $20,000 b. $18,000 c. $5,000 d. $(3,000)

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS