The partnership agreement called for the following in the allocation of partnership profits and losses:a. Salaries of P48,000 and P36,000 would be allocated to A and B, respectively.b. Interest of 8% on average capital balances.c. B will receive a bonus of 10% on all partnership billings in excess of P300,000.d. Any remaining profits or losses will be allocated 60/40 to A and B, respectively.Required:1. Determine the distribution of partnership income assuming the partnership income is P85,000and partnership billings amounted to P400,000.2. Determine distribution of partnership net income of P165,000 on billings of P400,000. Make-up assignmentPartnership operationsInstruction: Prepare the answers and solution in written form using a clean paper (e.g. Yellow pad, bondpaper, notebook etc.) and submit a snapshot in CANVAS.A and B organized AB partnership on 1/1/2020. The following entries were made into their capitalaccounts during 2019:ADrCr1/120,0004/15,00010/15,000BDrCr1/140,0003/110,0009/110,00011/110,000

Partnership is a business in which two or more than more persons join hands to carry out common…

Answered: Required: 1. Determine the distribution…

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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For partnerships, the qualified business income (QBI) items reported on Schedule K-1 should include the Section 199A business income, the W-2 wages of any qualified trade or business, and: Guaranteed payments made to the partners in lieu of salary. Recapture of investment credit. The unadjusted basis of qualified property. The adjusted basis of qualified property.
3. Partnership Income Distribution: For partnerships G, If partner C’s total share of the partnership’s net income 300,000 and Partner C’s Interest on original Capital Balance is 80,000 and Partner C’s share of the remainder of the partnership’s net income is 120,000, how much is Partner C’s allowance? A. 120,000 B. 100,000 C. 80,000 D. 60,000 E. None of the above
Which of the following statements regarding partnerships is true? a. Partnership income is taxed in the partnership. b. Partnership losses cannot be offset against the partners other income c. Partnership income is included in a partners income in the year of disbursement. d. Partnerships may earn business income, property income, and capital gains.
Coburn (beginning capital, $60,000) and Webb (beginning capital $86,000) are partners. During 2022, the partnership earned net income of $74,000, and Coburn made drawings of $20,000 while Webb made drawings of $22,000.
KINDLY ANSWER THE FIVE QUESTIONS. THANK YOU! 1.S1: Partnership profits and losses (including bonuses and revaluations) are allocated in accordance with their Profit and Loss Ratio. S2: If only the share in the profits have been established in the articles of partnership, then the share in the losses must be in accordance with their profit ratio.* a. S1 True; S2 False b. Both are false c.Both are true d. S2 True; S1 False 2. If the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise:* a. Undervaluation of Assets b. Overvaluation of Assets c. All of the choices d. Goodwill 3. Bonuses to the old partners arise under each of the following circumstances, except:* a.Withdrawal of a partner and the interest is purchased by the partnership b.Total contributed capital of the new partner is more than the agreed capital c. Agreed bonus in the distribution of partnership net income d. Purchase of Interest by a new partner 4. Which…
Identify which one of the following accounting entry for transfer of net profit at the end of the year: Oa. Dr: Profit and Loss account RO 35660 Cr: Partners' Capital Account RO 35660 O b. Dr: Profit and Loss Appropriation account RO 35660 Cr: Profit and Loss account Ro 35660 Oc. Dr: Profit and Loss account RO 35660 Cr: Profit and Loss Appropriation account RO 35660 d. Dr: Partner's Capital Account RO 35660 Cr: Profit and Loss account RO 35660 The balance of capital for partner Mansoor at the end of the year will be: O a. RO 42270 O b. RO 42720 Ос RO 47220 O d. RO 40720 Identify which one of the following accounting entry for payment of salary to partner Mazin at the end of the year: Oa. Dr: Mazin's salary account RO 1000 Cr: Mazin's capital account RO 1000 O b. Dr. Mazin's Salary account RO 12000 Cr: Mazin's capital account RO 12000
The partnership decided to revalue the firm's properties from P 500,000 to P650,000. This will O increase total partnership assets and total partners' equity. O increase total partners' equity only. O increase total partnership liabilities and total partners' equity. increase total partnership assets only.
2022 tax rules
(Cash and Non-cash Contributions) Give the entry to record Partner Luffy into the partnership under each of the independent assumptions: a. Cash of P400.000b. Accounts receivable of P500,000 with an allowance for uncollectible accounts of 150,000. c. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of80% of average cost. d. Equipment that costs P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10 year useful life.
Hi, can someone help me with this question please?
Which of the following is not a separately stated item on a partnership’s Schedule K? a. A $5,000 long---term capital loss b. $20,000 of unrecaptured Section 1250 c. $3,000 charitable contribution d. $5,000 bond interest e. All are separately stated.
Identify which one of the following accounting entry for transfer of net profit at the end of the year: a. Dr: Profit and Loss account RO 35660 Cr: Profit and Loss Appropriation account RO 35660 b. Dr: Profit and Loss Appropriation account RO 35660 Cr: Profit and Loss account Ro 35660 c. Dr: Profit and Loss account RO 35660 Cr: Partners' Capital Account RO 35660 d. Dr: Partner's Capital Account RO 35660 Cr: Profit and Loss account RO 35660

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Required: 1. Determine the distribution of partnership income assuming the partnership income is P85,000 and partnership billings amounted to P400,000. 2. Determine distribution of partnership net income of P165,000 on billings of P400,000.