The Fig & Olive Co. reports net income of $25,100. Interest allowances are Fig $3,400 and Olive $6,200; partner salary allowances areFig $18,300 and Olive $10,300 and the remainder is shared equally.Indicate the division of net income to each partner. (If an amount reduces the account balance then enter with a negative sign preceding thenumber eg.-15,000 or parentheses eg. (15,000).JSalary allowanceInterest allowance onpartners' capitalTotal salaries andinterestRemaining incomeTotal division of netincome$FigAccount Titles and ExplanationDivision of Net Income$DebitOlivePrepare the entry to distribute the net income. (Credit account titles are automatically indented when the amount is entered. Do not indentmanually. List all debit entries before credit entries.)$CreditTotal

Based on the given information, Division of Net Income is done and entry is posted…

Answered: The Fig & Olive Co. reports net income…

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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Subject: acounting
Leigh Meadows and Byron Leef formed a partnership in which the partnership agreement provided for salary allowances of $39,000 and $34,000, respectively. Determine the division of a $20,000 net loss for the current year, assuming remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies. Leigh Meadows Byron Leef Total Salary Allowance $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Remainder $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Net Loss $fill in the blank 7 $fill in the blank 8 $fill in the blank 9
Entries for Allocation of Net Income Danny Spurlock and Tracy Wilson decided to form a partnership on July 1, 20-1. Spurlock invested $80,000 and Wilson invested $20,000. For the fiscal year ended June 30, 20-2, a net income of $81,000 was earned. Determine the amount of net income that Spurlock and Wilson would receive under each of the following independent assumptions: Spurlock Wilson 1. There is no agreement concerning the distribution of net income. 2. Each partner is to receive 10% interest on their original investment. The remaining net income is to be divided equally. 3. Spurlock and Wilson are to receive a salary allowance of $35,000 and $26,000, respectively. The remaining net income is to be divided equally. 4. Each partner is to receive 10% interest on their original investment. Spurlock and Wilson are to receive a salary allowance of $35,000 and $26,000, respectively. The remaining net income is to be divided as follows: Spurlock, 75% and Wilson, 25%.
The following condensed balance sheet is for the partnership of Gulian, Singh, and Zahiri, who share profits and losses in the ratio of 4:3:3, respectively: Cash Other assets Gulian, loan Total assets $ 89,000 820,000 55,000 $ 964,000 Accounts payable Zahiri, loan Gulian, capital Singh, capital Zahiri, capital Total liabilities and capital Beginning balances Sold assets Adjusted balances Max loss on remaining noncash assets Paid liabilities Safe payments Required: The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $115,000. Prepare a proposed schedule of liquidation at this point in time. Note: Amounts to be deducted should be entered with a minus sign. X Answer is complete but not entirely correct. GULIAN, SINGH, AND ZAHIRI Proposed Schedule of Liquidation Cash $ 89,000 115.000 $ 204,000 0 ›› Other Assets (60,000)✔ $ 144,000 $ $ 820,000 $ 60,000 (328,000) ✔ 0 492,000 $ 60,000 (492,000) Accounts Payable 0 0 $ 0 (60,000) 0 Gulian, Loan $…
The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a $10,000 salary and Brook receives a $15,000 salary. Question Content Area Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: If an amount is zero, enter "0". For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) A. $60,000 Tatum Brook Total Salaries $fill in the blank 4f61950d2013fee_1 $fill in the blank 4f61950d2013fee_2 $fill in the blank 4f61950d2013fee_3 Remaining income allocation fill in the blank 4f61950d2013fee_4 fill in the blank 4f61950d2013fee_5 fill in the blank 4f61950d2013fee_6 Total division of income $fill in the blank 4f61950d2013fee_7 $fill in the blank 4f61950d2013fee_8 $fill in the blank 4f61950d2013fee_9 B. $25,000 Tatum Brook Total Salaries $fill in the blank 4f61950d2013fee_10 $fill in the blank…
The current account of a partner has been written up as follows. Current account Interest on capital £2,200 Balance B/d £625 Salary £1,225 Drawings £6,350 Balance c/d £12,800 Profit share £9,250 What is the correct balance carried down when the errors are corrected?
Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership agreement provided for salary allowances of $50,000 and $44,000, respectively. Determine the division of a $25,000 net loss for the current year, assuming that remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies. Lynn Carpenter Matthew Fredrick Total Salary Allowance $ $ $ Remainder $ $ $ Net Loss $ $ $
The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after Chloe receives a $11,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: If an amount is zero, enter "0". For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) A. $40,000 Chase Chloe Total Salaries $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Remaining income allocation fill in the blank 4 fill in the blank 5 fill in the blank 6 Total division of income $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 B. $6,000 Chase Chloe Total Salaries $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 Remaining income allocation fill in the blank 13 fill in the blank 14 fill in the blank 15 Total division of income $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 C. $(10,000) Chase…
In Crane Co, capital balances are frey $37.900 and Pedigo $45.400. The partners share income equally Vernon is admitted to the firm with a 42% interest by an investment of cash of $48,000. Journalize the admission of Vernon. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit
4
Hosea, Riziki and Zarika are trading as Horizon enterprises. They share profits and losses in the ratio of 2:2:1 respectively. The following is the statement of comprehensive income for the partnership for the year ended 31 December 2018: Shs. Shs. Sales Opening stock Purchases Closing stock Gross profit Less: Salaries Repairs and maintenance Interest Goodwill Depreciation Mortgage repayment Insurance Auditee Legal fee Equipment purchase Rent and rates Net profit 300,000 4,000,000 (600,000) 900,000 100,000 480,000 198,000 142,000 200,000 384,220 315,780 100,000 200,000 18,0000 8,000,000 (3700,000) 4,300,000 (3,200,000) 1,100,000 Additional information 1. Opening inventory and closing inventory were overvalued by 30%. 2. Included in interest expense is interest on capital to partners of Sh. 80,000. This amount was to be shared in the profit sharing ratio. The balance of interest relates to an…
Please Introduction and show work and no plagiarism please i humble request

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