Required informationProblem 12-4A (Algo) Partnership income allocation, statement of portners' equity, and closing entries LOP2(The following information applies to the questions displayed below]Mo, Lu, and Barb formed the MLB Partnership by making investments of $70,200, $273,000, and $436,800, respectively.They predict annual partnership net income of $466,500 and are considering the following alternative plans of sharingincome and loss: (0) equally. (b) in the ratio of their initial capital investments, or (d salary allowances of $81,200 to Mo,$60,900 to Lu, and $91,500 to Barb, interest allowances of 10% on their initial capital investments, and the remainingbalance shared as follows: 20% to Mo, 40% to Lu, and 40% to BarbProblem 12-4A (Algo) Part 33. Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net income is$466,500. Mo, Lu, and Barb withdraw $35,700, $49,700, and $65,700, respectively, at year-end. Also close the withdrawals accounts.View transaction listJournal entry worksheetRecord the entry to close the income summary account assuming the partnersagree to use plan c and net income is $466,500.Note: Enter debits before credits. Journal entry worksheetRecord the entry to close the partners' withdrawals accounts. (Mo, Lu, andBarb withdraw $35,700, $49,700, and $65,700, respectively, at year-end.)Note: Enter debits before credits.DateGeneral JournalDebitCreditDecember 31Record entryClear entryView general journal

The partnership comes into existence when two or more persons agree to do the business and further…

Required information Problem 12-4A (Algo) Partnership income allocation, statement of partners' equity, and closing entries LO P2 (The following information applies to the questions displayed below] Mo, Lu, and Barb formed the MLB Partnership by making investments of $70,200, $273,000, and $436,800, respectively They predict annual partnership net income of $466,500 and are considering the following alternative plans of sharing income and loss (a) equally. (b) in the ratio of their initial capital investments, or (d salary allowances of $81,200 to Mo, $60,900 to Lu, and $91,500 to Barb, interest allowances of 10% on their initial capital investments, and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb roblem 12-4A (Algo) Part 3 Prepare the December 31 journal entry to close lIncome Summary assuming they agree to use plan (c) and that net income is 166,500 Mo, Lu, and Barb withdraw $35,700, $49700, and $65,700, respectively, at year-end. Also close the withdrawals accounts

Required information Problem 12-4A (Algo) Partnership income allocation, statement of partners' equity, and closing entries LO P2 (The following information applies to the questions displayed below] Mo, Lu, and Barb formed the MLB Partnership by making investments of $70,200, $273,000, and $436,800, respectively They predict annual partnership net income of $466,500 and are considering the following alternative plans of sharing income and loss (a) equally. (b) in the ratio of their initial capital investments, or (d salary allowances of $81,200 to Mo, $60,900 to Lu, and $91,500 to Barb, interest allowances of 10% on their initial capital investments, and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb roblem 12-4A (Algo) Part 3 Prepare the December 31 journal entry to close lIncome Summary assuming they agree to use plan (c) and that net income is 166,500 Mo, Lu, and Barb withdraw $35,700, $49700, and $65,700, respectively, at year-end. Also close the withdrawals accounts

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter11: Invest Or Losses

Section: Chapter Questions

Problem 35P

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Problem 2: Statement of Changes in Equity - Partnership The following are taken from the accounting records of JFK Partnership. December 31, 2020 December 31, 2021 James, Capital P54,900 P64,900 Christine, Capital 53,200 63,900 Lolly, Capital 44,890 50,890 The partnership generated net income of P51,600 in 2020. According to the partnership contract, James, Christine and Lolly share profit and loss equally. The partnership contract allows each partner to withdraw P1,000 monthly. James and Christine each contributed P5,000 during the year. Loll did not make any contributions during the year. Required: 1. Prepare the partnership's Statement of Changes in Equity. 2. Determine if any of the partners violated the partnership contract provision on Drawings. Identify who among the partners it is.
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developed in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…
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