Required information[The following information applies to the questionsdisplayed below.]Ries, Bax, and Thomas invested $80,000, $112,000, and$128,000, respectively, in a partnership. During its firstcalendar year, the firm earned $249,000.Required:Prepare the entry to close the firm's Income Summaryaccount as of its December 31 year-end and to allocate the$249,000 net income under each of the following separateassumptions.2. The partners agreed to share income and loss in the ratio oftheir beginning capital investments.Complete this question by entering your answersAppropriation Generalof profitsJournalAllocate $249,000 net income in the ratio of their begin(Do not round intermediate calculations.)Supporting Percentage of TotalComputationsEquityRiesBaxThomasXXXIncomeSummaryAllocated Incometo Capital< Appropriation of profitsGeneral Journa [The following information applies to the questionsdisplayed below.]Ries, Bax, and Thomas invested $80,000, $112,000, and$128,000, respectively, in a partnership. During its firstcalendar year, the firm earned $249,000.Required:Prepare the entry to close the firm's Income Summaryaccount as of its December 31 year-end and to allocate the$249,000 net income under each of the following separateassumptions.2. The partners agreed to share income and loss in the ratio oftheir beginning capital investments.Complete this question by entering your ansAppropriation Generalof profitsJournalPrepare the entry to close the firm's Income SumrDecember 31 year-end. (Do not round intermediatView transaction listJournal entry worksheet< 1Record the entry to close the income summary account assuming the partnershave agreed to share income and loss in the ratio of their beginning capitalinvestments.Note: Enter debits before credits.DateDecember31Record entryGeneral JournalClear entryDebitCreditView genera

Partnership is one of the forms of business organizations. It includes the carrying on of business…

Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. Complete this question by entering your answers Appropriation General of profits Journal Allocate $249,000 net income in the ratio of their begin (Do not round intermediate calculations.) Supporting Percentage of Total Computations Equity Ries Bax Thomas X X x Income Summary Allocated Income to Capital

Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. Complete this question by entering your answers Appropriation General of profits Journal Allocate $249,000 net income in the ratio of their begin (Do not round intermediate calculations.) Supporting Percentage of Total Computations Equity Ries Bax Thomas X X x Income Summary Allocated Income to Capital

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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Brian Caldwell and Adriana Estrada have operated a successful firm for many years, sharing net income and net losses equally. Kris Mays is to be admitted to the partnership on September 1 of the current year, in accordance with the following agreement: a. Assets and liabilities of the old partnership are to be valued at their book values as of August 31, except for the following: • Accounts receivable amounting to $1,500 are to be written off, and the allowance for doubtful accounts is to be increased to 5% of the remaining accounts. • Merchandise inventory is to be valued at $46,800. • Equipment is to be valued at $64,500. b. Mays is to purchase $26,000 of the ownership interest of Estrada for $30,000 cash and to contribute $32,000 cash to the partnership for a total ownership equity of $58,000. The post-closing trial balance of Caldwell and Estrada as of August 31 follows: Caldwell and Estrada Post-Closing Trial Balance August 31, 20Y9 Debit Balances Credit Balances Cash 12,300…
Moss and Barber organize a partnership on January 1. Moss's initial net investment is $80,000, consisting of cash ($24,000), equipment ($67,000), and a note payable reflecting a bank loan for the new business ($11,000). Barber's initial investment is cash of $43,000.Prepare journal entries to record (1) Moss’s investment and (2) Barber’s investment.
QUESTION: SHARP AND TOWNSON HAD CAPITAL BALANCES OF $60,000 AND $120,000, RESPECTIVELY ON JANUARY 1 OF THE CURRENT YEAR. ON MAY 8, SHARP INVESTED AN ADDITIONAL $10,000 IN THE PARTNERSHIP. DURING THE YEAR, SHARP AND TOWNSON WITHDREW $25,000 AND $45,000, RESPECTIVELY. AFTER CLOSING ALL EXPENSE AND REVENUE ACCOUNTS AT THE END OF THE YEAR, INCOME SUMMARY HAS A CREDIT BALANCE OF $90,000 THAT SHARP AND TOWNSON HAVE AGREED TO SPLIT ON A 2:1 BASIS, RESPECTIVELY. JOURNALIZE THE ENTRIES TO CLOSE THE INCOME SUMMARY ACCOUNT AND THE DRAWING ACCOUNTS.
Beau Dawson and Willow McDonald formed a partnership, investing $276,000 and $92,000, respectively. Determine their participation in the year's net income of $136,000 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 $47,000 and $59,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $47,000 and $59,000, respectively, and the remainder divided equally. Dawson McDonald а. $ $4 b. С. d. $ е.
Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 1. The partners did not agree on a plan and therefore share income equally. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. 3. The partners agreed to share income and loss by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.
Dallas and Weiss formed a partnership to manage rental properties, by investing $164,000 and $246,000, respectively. During its first year, the partnership recorded profit of $514,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. b. The partners agreed to share profits and losses in proportion to their initial investments. c. The partners agreed to share profit by allowing a $156,000 per year salary allowance to Dallas, an $86,000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Enter "0" when the answer is zero.)
The Smith and Jones partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $160,000 for Smith and $80,000 for Jones. At the beginning of the year, Smith's Capital account had a balance of $320,000, while Jones' Capital account had a balance of $280,000. Net income for the year was $200.000. The balance of Jones' Capital account at the end of the year after closing is Essay Toolbar navigation B I U S E E E v
Jenkins, Willis, and Trent invested $220,000, $385,000, and $495,000, respectively, in a partnership. During its first yeal the firm recorded profit of $615,000. Required: Prepare entries to close the firm's Income Summary account as of December 31 and to allocate the profit to the partners under each of the following assumptions: a. The partners did not produce any special agreement on the method of distributing profits. c. The partners agreed to share profit by providing annual salary allowances of $115,000 to Jenkins, $125,000 to Willis, and $60,000 to Trent; allowing 15% interest on the partners' beginning investments; and sharing the remainder equally.
Rex and Kelsey are partners who share income in the ratio of 3:2. Their capital balances are $95,000 and $140,000 respectively, on January 1. The partnership generated net income of $40,000 for the year. What is Rex’s capital balance after closing the revenue and expense accounts to the capital accounts? $71,000 $119,000 $146,000 $111,000 None of the above.
Beau Dawson and Willow McDonald formed a partnership, investing $276,000 and $92,000, respectively. Determine their participation in the year's net income of $136,000 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 $47,000 and $59,000, respectively, and the balance divided equally.e. Allowance of interest at the rate of 5% on original investments, salary allowances of $47,000 and $59,000, respectively, and the remainder divided equally.
Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $44,000 cash from Busby and $66,000 from Beatty. During Year 1, the partnership earned $42,000 in cash revenues and paid $18,400 for cash expenses. Busby withdrew $2,000 cash from the business, and Beatty withdrew $2,500 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement, balance sheet, and statement of cash flows for B&B's Year 1 fiscal year.
A, B and C are partners in the accounting firm. Their capital account balances at year end were:A - P 90,000B- P 110,000C- P 50,000.They share profits and losses in a 4:4:2 ratio, after the following special terms:1. Partner C is to receive a bonus of 10% of the net income after bonus.2. Interest of 10% shall be paid on that portion of a partner's capital in excess of P 100,0003. Salaries of P 10,000 and P 12,000 shall be paid to partners A and C, respectively.Assuming a net income of P 44,000 for the year, the total profit share of partner C would be: