Question 55 ptsThe XYZ Partnership is being formed by three partners. Their ownership in the partnership,and tax year ends are listed below. Determine which tax year the partnership can electwithout IRS permission.June 30Sept 30Dec 31deferraldeferraldeferral(#Totalmonths)(#months)Total(#months)TotalX 40% 6/300Y 30% 9/30363.662.4009 2.7Z 30% 12/31 61.83.0Total2.70 05.1Which tax year can the partnership elect without IRS permission? 6/30 or 9/30 or 12/31?

A partnership's tax year, or fiscal year, is the 12-month period that the partnership uses for…

Answered: Question 5 5 pts The XYZ Partnership is…

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 12.3APR

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Question 5 The XYZ Partnership is being formed by three partners. Their ownership in the partnership, and tax year ends are listed below. Determine which tax year the partnership can elect without IRS permission. June 30 Sept 30 Dec 31 deferral deferral deferral (# Total (# Total (# Total months) months) months) X 40% 6/30 0 Y 30% 9/30 3 9 3.6 6 2.4 0 Z 30% 12/31 6 1.8 3.0 Total 2.7 0 9 2.7 0 0 5.1 Which tax year can the partnership elect without IRS permission? 6/30 or 9/30 or 12/31?
Question 5 5 pts The XYZ Partnership is being formed by three partners. Their ownership in the partnership, and tax year ends are listed below. Determine which tax year the partnership can elect without IRS permission. June 30 Sept 30 Dec 31 deferral deferral deferral (# Total months) (# months) Total (# months) Total X 40% 6/30 0 Y 30% 9/30 3 6 3.6 6 2.4 0 0 9 2.7 Z 30% 12/31 6 1.8 3.0 Total 2.7 0 0 5.1 Which tax year can the partnership elect without IRS permission? 6/30 or 9/30 or 12/31?
Multiple Choice Question 87 The net income of the Travis and Tucker partnership is $124300. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of $99400 (Travis) and $149700 (Tucker) have been allocated. At the beginning of the year, Travis's Capital account had a balance of $250200 and Tucker's Capital account had a balance of $324000. What is the balance of Tucker's Capital account at the end of the year after profits and losses have been distributed? $386400 $49450 $324000 $411300 O O
Required information Problem 12-3A (Algo) Allocating partnership income LO P2 Skip to question [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $58,000, $74,000, and $82,000, respectively, in a partnership. During its first calendar year, the firm earned $361,500. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $361,500 net income under each of the following separate assumptions.
Question 17 of 26 0.19/1 Coburn (beginning capital, $56,000) and Webb (beginning capital $92,000) are partners. During 2022, the partnership earned net income of $69,000, and Coburn made drawings of $17,000 while Webb made drawings of $26,000. (a) Your answer is partially correct. Assume the partnership income-sharing agreement calls for income to be divided 30% to Coburn and 70% to Webb. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount Is entered. Do not Indent manually.) Account Titles and Explanation Debit Credit Income Summary 69,000 Coburn, Capital Webb, Capital
Question 4 John, Lee and Tony are in partnership, preparing accounts to 31 October each year. Their partnership agreement states that: i. The partners are entitled to 5% per annum interest on their opening capital accounts. No interest is allowed (or charged) on current account balances. ii. Interest is charged on the partners' drawings at 7% per annum. Their drawings during the year to 31 October 2020 were as follows: John RM30,000 Lee RM20,000 Tony RM3,000 iii. Partners' annual salaries are RM6,000 and RM 12,000 for Lee and Tony respectively. iv. Remaining profits and losses are shared between John, Lee and Tony in the ratio of 5:4:1. v. The partners' capital and current account balances as at 1 November 2019 are as follows: Capital a/cRM Current a/cRM John 50,000 16,320 Cr Lee 30,000 1,110 Cr Tony 10,000 (590) Dr The capital account balances remained unchanged during the year to 31 October 2020. vi. The partnership's net…
Required information Problem 12-3A (Algo) Allocating partnership income LO P2 [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $58,000, $74,000, and $82,000, respectively, in a partnership. During its first calendar year, the firm earned $361,500. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $361,500 net income under each of the following separate assumptions. Problem 12-3A (Algo) Part 1 1. The partners did not agree on a plan, and therefore share income equally. View transaction list Journal entry worksheet 1 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 December 31 Record entry General Journal Clear entry Debit Credit View general journal
Problem 3. The A,B,C partnership agreement specifies that partnership net income be allocated as follows: A B C Salary allowance P30,000 P10,000 P40,000Interest on ave. capital balance 10% 10% 10% Remainder 40% 40% 20% The average capital balances for the current year were P50,000 for A, P30,000 for B, and P20,000 FOR c. Assuming a current year net income of P150,000, what amount should be allocated to each partner? Assuming a current year net income of P50,000, what amount should be allocated to each partner?
Required information Problem 12-3A (Algo) Allocating partnership income LO P2 [The following information applies to the questions displayed below] Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first calendar year, the firm earned $430,200. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $430,200 net income under each of the following separate assumptions. Problem 12-3A (Algo) Part 3 3. The partners agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to Thomas, granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your answers in the tabs below. Appropriation of profits General Journal Allocate $430,200 net indome by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to…
Question 4 John, Lee and Tony are in partnership, preparing accounts to 31 October each year. Their partnership agreement states that: i. The partners are entitled to 5% per annum interest on their opening capital accounts. No interest is allowed (or charged) on current account balances. ii. Interest is charged on the partners' drawings at 7% per annum. Their drawings during the year to 31 October 2020 were as follows: John RM30,000 Lee RM20,000 Tony RM3,000 iii. Partners' annual salaries are RM6,000 and RM 12,000 for Lee and Tony respectively. iv. Remaining profits and losses are shared between John, Lee and Tony in the ratio of 5:4:1. v. The partners' capital and current account balances as at 1 November 2019 are as follows: Capital a/cRM Current a/cRM John 50,000 16,320 Cr Lee 30,000 1,110 Cr Tony 10,000 (590) Dr The capital account balances remained unchanged during the year to 31 October 2020. vi. The partnership's net…
Homework Activity 2 A B and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1st Jan 2019, their capital balances are: A 30,000 B 20,000 C 10,000 The terms of partnership provides that All partners are eligible for interest on capital @6% All partners are liable to pay interest on drawings @ 4% All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31st Dec 2019 before making the above terms was 18,000. The drawings of the partners were: A 3,000 B 2,000 C 1,000 You are requested to prepare Profit and Loss Appropriations Account Capital accounts of three partners under fluctuating capital method
QUESTION 1 Mweemba and Phiri are in partnership sharing profits and losses in the ratio 7:3 respectively. The following information has been taken from the partnership records for the year ended 31 May 2020. Partners' capital account Mweemba k200,000 Phiri k140,000 Partners' current accounts, balances as at 1 June 2019: Mweemba K15, 000 Cr Phiri K13, 000 Cr During the year ended 31 May 2020 the partners made the following withdrawals from the partnership bank account. Mweemba Phiri k10, 000 on 31 August 2019 K10, 000 on 30 November 2019 K10, 000 on 28 February 2020 K10, 000 on 31 May 2020 k7, 000 on 31 August 2019 K7,000 on 30 November 2019 K7,000 on 28 February 2020 K7,000 on 31 May 2020 Interest is to be charged on withdrawals at the rate of 12% per annum. Interest is allowed on capital accounts and credit balances on current accounts at the rate of 12% per annum. Phiri is to be allowed a salary of k15, 000 per annum. The Net profit of the partnership for the year ended 31 May 2020…

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