The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (40%) Phil (30%) Ernie (30%) Sergio invests $60,000 30,000 45,000 $60,000 Sergio investment Required: Note: Use the cells A2 to C8 from the above information to complete this question. Prepare a schedule calculating the balance to be credited to each partner's account if Sergio invests $60,000 for a 20% interest. Assume the bonus method is used. Tiger 40% 30% 30% $8,400 20% Phil $6,300 Ernie $6,300 Sergio $39,000

The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (40%) Phil (30%) Ernie (30%) Sergio invests $60,000 30,000 45,000 $60,000 Sergio investment Required: Note: Use the cells A2 to C8 from the above information to complete this question. Prepare a schedule calculating the balance to be credited to each partner's account if Sergio invests $60,000 for a 20% interest. Assume the bonus method is used. Tiger 40% 30% 30% $8,400 20% Phil $6,300 Ernie $6,300 Sergio $39,000

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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The statement of financial position of ABC Partnership on May 31,2022 is given below: Cash P25,000 Accounts Payable P70,000 Receivable 25,000 Loan Payable to Allan 30,000 Inventories 180,000 Allan, Capital 75,000 Plant& Equipment 20,000 Bobby, Capital 75,000 Carlo, Capital 100,000 P350,000 P350,000 Dan joined the partnership on June 1, 2022 by investing P75,000 for a 1/5 interest in an agreed capitalization of P325,000. What is the amount of Carlo, capital after the admission of Dan?
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Price, Waterhouse, and Coopers complete their first year of business as a partnership. The partners offer auditing, tax, and advisory services. Use the Tableau Dashboard to determine allocation of income. Select Industry → _A__B_ __C_ Owner Initial Investments Waterhouse Price $250,0... $225,0... $200,0... $175,0... $150,0... $125,0... $100,0... $75,000 $50,000 $25,000 revenue Revenues 带+ableau Coopers Advisory services Auditing revenue Tax services revenu Owner Withdrawals Price Waterhouse Coopers $0 $1,000 $2,000 $3,000 $4,000 Expenses Salaries expense Advertising expense Insurance expense Rent expense Supplies expense ņ 回 1. For Industry C, compute the partnership's net income. 2. For Industry C, determine each partner's share of income assuming the partners did not agree on a plan and therefore share income equally.
For Industry H, determine each partner's share of income assuming the partners agree to share income by giving a $67,700 per year salary allowance to Price, a $126,100 per year salary allowance to Waterhouse, a $113,700 per year salary allowance to Coopers, a 15% interest on their initial capital investments, and the remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Important! Be sure to click the correct Industry at the top of the dashboard. Net income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of each partner Initial partnership investments Net income Allocation of Partnership Income Price Total net income Total 0 Waterhouse $ $ PRICE, WATERHOUSE, AND COOPERS Statement of Partners' Equity For Year Ended December 31 Price Coopers 0 0 Waterhouse 0 0 0 $ For Industry H, prepare a statement of partners' equity for the…
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:1 Mr. Suhail and Mr. Said decided to start a partnership business. They drafted a partnership deed with the help of a consultant and started the business on 01.11.2020 Some of the key extracts of the partnership deed is given as follows: Resolved that. a. Each partner is to bring in OMR 15,000 as capital b. Each partner is to get 5% interest on capital c. Mr. Suhail is entitled to get a salary of OMR 400 per month d. Firm is entitled to charge 6% interest per annum on partner's drawings. Summary of transactions: November: 2020 Capital contribution: Mr. Suhail -OMR 15000; Mr. Said: OMR a. 15000 b. Purchase of goods- OMR 8.000 sales of goods- OMR 18,000 d. Wages- OMR 200 e. Salary to employees- OMR 1,200 f. Other administrative expenses- OMR 800 g. Rent of building- OMR 1,000 h. Electricity charges- OMR 15 i. Water charges- OMR 5 j. Travelling expenses- OMR 50 k. Furniture purchase- OMR 1,500 1. Electrical fittings- OMR 200 m. Drawings of partners-: Mr. Suhail -OMR 200; Mr. Said; OMR…
Please I need answer for question No. 2 which is related to question No. 1 which already solved. Thanks Salim and Rashid form a partnership, investing OR 80,000 and OR 120,000, respectively. Required: Determine their shares of net income: Net income is OR 60,000. The first OR 30,000 is shared on the basis of partner capital balances. The next OR 20,000 is based on partner services, with Salim getting 40% and Rashid 60%. The remainder is shared equally. Step 1: Calculate the share of net income (OR30,000) based on partners’ capital balance. Step 2: Calculate the share of net income (OR 20,000) based on the percentage of partners’ service. Step 3: Calculate the share of net income (OR 10,000=(60,000–30,000–20,000)) based on equal share. Step 4: Prepare a statement showing the allocation of profit. 2. How can partnership profits and losses be allocated.
The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, Is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: Debit $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 will be paid to creditors and the partners in Installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30,…