Help with accounting question Sophia and Marcus are partners who agree that Sophia will receive a $60,000salary allowance and that any remaining income or loss will be sharedequally. If Marcus's capital account is credited for $2,800 as his share of thenet income in a given period, how much was the total net income for thepartnership?

Step 1: Definition of Partnership Income AllocationPartnership income allocation refers to how the…

Answered: Sophia and Marcus are partners who…

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

Blake and Matthew are partners who agree that Blake will receive a $100,000 salary allowance and that any remaining income or loss will be shared equally. If Matthew’s capital account is credited for $2,000 as his share of the net income, how much net income did the partnership earn?
How much net income did the partnership earn in that period?
Sophia and Daniel are business partners who agree that Sophia will receive a $45,000 salary allowance, and any remaining profit or loss will be split equally. If Daniel's capital account is credited with $2,800 as his share of the net income, what is the total net income of the partnership?
Hay, Straw and Clover formed the HSC Partnership, agreeing to share profits and losses equally. Clover will manage the business for which he will receive a guaranteed payment of $30,000 per year. Cash receipts and disbursements for the year were as follows: Net income from operations (before guaranteed payment) $ 90,000 Guaranteed payment to Clover 30,000 What amount of income will each partner report on their personal return?
Stolton and Bright are partners in a business they started two years ago. The partnership agreement states that Stolton should receive a salary allowance of $10,700 and that Bright should receive a $20,600 salary allowance. Any remaining income or loss is to be shared equally. Determine each partner's share of the current year's net income of $54,000. Note: Enter all allowances as positive values. Enter losses, if any, as negative values. Allocation of Partnership Income Stolton Net income Salary allowances Bright Total $ 54,000 0 Balance of income Balance allocated equally 0 Balance of income $ 0 Shares of the partners $ 0 $ 0
The net income of the Mohammad and Ahmed partnership is 250,000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of 200,000 (Mohammad) and 300,000 (Ahmed) have been allocated. At the beginning of the year, Mohammad's Capital account had a balance of 500,000 and Ahmed's Capital account had a balance of 650,000. What is the balance of Mohammad's Capital account at the ?end of the year after profits and losses have been distributed 825,000.a O 375,000.b O 625,000 .cO 575,000.d O
Beth, Luz and Ana divide profit and loss in the ratio of 2:1:1 respectively, after giving a monthly salary of P10,000 to each partner and bonus of 20% to Beth. Determine the share of each partner and record the distribution on the following independent situations: If Luz received a profit share of P50,000 after six months, how much did Beth receive? Assume bonus is based on net income before bonus. b) id Luz received a profit share of P50,000 after one year, how much did Beth receive? Bonus is based on the net income after bonus.
Mary and David are partners who share profits and losses on a 3:1 basis. This means Mary receives 75% and David receives 25% of income after any allocations. Mary receives a salary allowance of $15,000. Earnings for the period total $51,000. What will be the total amount credited to Mary's Capital account when the Income Summary account is closed?
How much was the total net income for the partnership?
Solange and Louis enter into a partnership agreement. Solange contributes $65,000 in capital. Louis contributes $95,000 in capital. The agreement stipulates that profits and losses will be shared in the ratio of their respective capital account balances. The net income for the year is $32,000. Which of the following amounts should be credited to Louis’s capital account? $19,000 $32,000 $16,000 $13,000
Tiana and Alyssa share income equally. For the current year, the partnership remaining net income is $75,000 after accounting for salary allowances. Tiana made withdrawals of $23,000 and Alyssa made withdrawals of $32,000. At the beginning of the year, the capital account balances were: Tiana capital, $92,000 and Alyssa capital, $126,000. Tiana’s capital account balance at the end of the year is $131,500 $106,500 $134,000 $129,500
Stolton and Bright are partners in a business they started two years ago. The partnership agreement states that Stolton should receive a salary allowance of $11,500 and that Bright should receive a $19,900 salary allowance. Any remaining income or loss is to be shared equally. Determine each partner’s share of the current year’s net income of $51,500. Do not give answer in image

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS