Required information[The following information applies to the questions displayed below.]Ramer and Knox began a partnership by investing $90,000 and $135,000, respectively.During its first year, the partnership earned $260,000. Prepare calculations showing how the $260,000 income is allocated undereach separate plan for sharing income and loss.1. The partners did not agree on a plan, and therefore share income equally.RamerKnox Required information[The following information applies to the questions displayed below.]Ramer and Knox began a partnership by investing $90,000 and $135,000, respectively.2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $260,000. (Do not roundintermediate calculations.)Fraction to AllocateRamer's ShareFraction to AllocateKnox's Share ofTotal IncomeAllocatedRamerof IncomeKnoxIncome

1. Profits to be shared equally Net Profit = 260,000 Ramar share = 260,000 * 50% = 130,000 Knox…

Required information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $90,000 and $135,000, respectively. 2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $260,000. (Do not round intermediate calculations.) Fraction to Allocate Ramer Ramer's Share of Income Fraction to Allocate Knox's Share of Income Total Income Allocated Knox

Required information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $90,000 and $135,000, respectively. 2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $260,000. (Do not round intermediate calculations.) Fraction to Allocate Ramer Ramer's Share of Income Fraction to Allocate Knox's Share of Income Total Income Allocated Knox

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

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…
Dividing partnership income Carmelo Fernandez and Bobby Morett formed a partnership, investing $187,500 and $62,500, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $45,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $38,000 and $45,000, respectively, and the remainder divided equally. Fernandez Morett a. b. C. d. e.
1
Dengar
Dividing Partnership IncomeBeau Dawson and Willow McDonald formed a partnership, investing $120,000 and $ 180,000, respectively.Determine their participation in the year's net income of $295,000 under each of the following independent assumptions:a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $50,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $38,000 and $50,000, respectively, and the remainder divided equally.
2. The partnership of David White and Paul Wacker incurred net income of $40,000 for the current year. David had invested $30,000 and Paul had invested $45,000. Calculate he distribution share to each partner if profits are divided in the ratio of:a. Investmentsb. 3:1
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. Cash Grayson Jackson, Capital Harry Barge, Capital Lewan Gorman, Capital b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ Harry Barge $ Lewan Gorman $
Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $100,000 and $150,000, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $34,000 and $49,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $34,000 and $49,000, respectively, and the remainder divided equally.
Subject- account