Required information [The following information applies to the questions displayed below.] Mo, Lu, and Barb formed the MLB Partnership by making investments of $73,800, $287,000, and $459,200, respectively. They predict annual partnership net income of $487,500 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of $82,800 to Mo, $62,100 to Lu, and $93,500 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. 2. Prepare a statement of partners' equity showing the allocation of income to the partners assuming they agree to use plan (c), that income earned is $487,500; and that Mo, Lu, and Barb withdraw $38,100, $52,100, and $68,100, respectively, at year-end. Note: Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values. Initial partnership investments Net income Total net income Total MLB PARTNERSHIP Statement of Partners' Equity For Year Ended December 31 Mo Lu Barb Total 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0
Required information [The following information applies to the questions displayed below.] Mo, Lu, and Barb formed the MLB Partnership by making investments of $73,800, $287,000, and $459,200, respectively. They predict annual partnership net income of $487,500 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of $82,800 to Mo, $62,100 to Lu, and $93,500 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. 2. Prepare a statement of partners' equity showing the allocation of income to the partners assuming they agree to use plan (c), that income earned is $487,500; and that Mo, Lu, and Barb withdraw $38,100, $52,100, and $68,100, respectively, at year-end. Note: Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values. Initial partnership investments Net income Total net income Total MLB PARTNERSHIP Statement of Partners' Equity For Year Ended December 31 Mo Lu Barb Total 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Mo, Lu, and Barb formed the MLB Partnership by making investments of $73,800, $287,000, and $459,200, respectively.
They predict annual partnership net income of $487,500 and are considering the following alternative plans of sharing
income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of $82,800 to Mo,
$62,100 to Lu, and $93,500 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.
2. Prepare a statement of partners' equity showing the allocation of income to the partners assuming they agree to use plan (c), that
income earned is $487,500; and that Mo, Lu, and Barb withdraw $38,100, $52,100, and $68,100, respectively, at year-end.
Note: Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.
Initial partnership investments
Net income
Total net income
Total
MLB PARTNERSHIP
Statement of Partners' Equity
For Year Ended December 31
Mo
Lu
Barb
Total
0
0
0
0
0
0
0
$
0
$
0
$
0
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fbcd63b-eed6-4261-93eb-84d2a67becd3%2F7b3257b2-62bb-4ba2-ab47-cfabe248b93d%2Fwvdacb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Mo, Lu, and Barb formed the MLB Partnership by making investments of $73,800, $287,000, and $459,200, respectively.
They predict annual partnership net income of $487,500 and are considering the following alternative plans of sharing
income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of $82,800 to Mo,
$62,100 to Lu, and $93,500 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.
2. Prepare a statement of partners' equity showing the allocation of income to the partners assuming they agree to use plan (c), that
income earned is $487,500; and that Mo, Lu, and Barb withdraw $38,100, $52,100, and $68,100, respectively, at year-end.
Note: Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.
Initial partnership investments
Net income
Total net income
Total
MLB PARTNERSHIP
Statement of Partners' Equity
For Year Ended December 31
Mo
Lu
Barb
Total
0
0
0
0
0
0
0
$
0
$
0
$
0
$
0
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