[The following information applies to the questions displayed below.] 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 Income Summary $ $ $ 249,000 249,000 249,000 Allocated Income to Capital

[The following information applies to the questions displayed below.] 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 Income Summary $ $ $ 249,000 249,000 249,000 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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Can I please get help wtih this question?6.3 Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $416,100. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions. 1. The partners did not agree on a plan, and therefore share income equally.
Which assets depreciate?
Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2023 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZ's income. Period January 1 through April 19 (109 days) April 20 through December 31 (256 days) January 1 through December 31, 2023 (365 days) Income $ 209,000 359,000 $ 568,000 Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. b. On April 19, 2023, Blinkin sells his shares to Nod. Income Reported Winkin $ Blinkin Nod Daily Allocation Method Specific Identification Method 189,333 $ 189.333 $ 69 69 69.667 309.000
Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2021 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZ's income. Period Income January 1 through March 1 (60 days) March 2 through December 31 (305 days) $ 125,000 350,000 $ 475,000 January 1 through December 31, 2021 (365 days) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. There are no sales of SleepEZ stock during the year. Income Reported Daily Allocation Specific Identification Method Method Winkin Blinkin Nod
Required information [The following information applies to the questions displayed below.] Ramer and Knox began a partnership by investing $88,000 and $132,000, respectively. During its first year, the partnership earned $255,000. Prepare calculations showing how the $255,000 income is allocated under each separate plan for sharing income and loss. 3. The partners agreed to share income by giving a $69,000 per year salary allowance to Ramer, a $43,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $255,000. Note: Enter all allowances as positive values. Enter losses as negative values. Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners Ramer Saved Knox Total
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.
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…
Required Information [The following Information applies to the questions displayed below.] The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited partner, Francesca Is the general partner, and they share capital and profits equally. Francesca works full time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Amir and Francesca had bases of $10,600 and $3,400, respectively, and the partnership did not have any liabilities. During the current year, the partnership reported the following results from operations: Net sales Cost of goods sold Operating expenses Short-term capital loss. Tax-exempt interest 51231 gain $ 663,000 504,000 169,000 1,200 2,400 6,400 On the last day of the year, the partnership distributed $3,400 each to Amir and Francesca. Required: a. What outside basis do Amir and Francesca have in their partnership Interests at the end of the year? b. How…
Please create the journals and balance sheet and using correct chart of accounts and labels and amount descriptions. Only answer using what i have provided. On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,900 in cash and merchandise inventory valued at $55,950. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,390. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow: Wallace’s Ledger Agreed-Upon Balance Valuation Accounts Receivable $19,370 $18,480 Allowance for Doubtful Accounts 1,240 1,520 Equipment 83,050 54,330 Accumulated Depreciation 29,920 – Accounts Payable 14,980 14,980 Notes Payable (current) 35,860 35,860 The partnership agreement includes the following provisions regarding the division of net income: interest on original…
Larry, Curly and Moe formed the HydroCarpets partnership on January 1 of the current year. The partners invested assets and liabilities into the partnership as follows: Larry: Cash $ 55,000 Accounts Receivable 20,000 Curly: Land 20,000 Building 180,000 Mortgage payable 95,000 Moe: Cash 35,000 Office equipment 25,000 During the first year of business the net income was $141,000. 1) Prepare the journal entries to record the partnership setup 2) Prepare net income allocation using following plans separately. (please note that you need to show me the calculation formula and steps) Plan1: on a 3:3:4 ratio of partnership agreement Plan2: on an original investment ratio respectively Plan3: Interest allowance of 10% on initial investments, salary allowance of $35,000 to Larry, $40,000 to Curly and $45,000 to Moe, with any remaining balance to be shared equally among the three partners 3) Each partner withdrew $30,000 cash from the partnership during the year. Please prepare a statement of…
Please Introduction and show work and no plagiarism please i humble request
On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $20,630 in cash and merchandise inventory valued at $55,950. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $59,960. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow: Wallace’s Ledger Agreed-Upon Balance Valuation Accounts Receivable $19,040 $18,210 Allowance for Doubtful Accounts 910 1,130 Equipment 83,040 54,480 Accumulated Depreciation 29,670 – Accounts Payable 15,380 15,380 Notes Payable (current) 35,940 35,940 The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,040 (Keene) and $30,510 (Wallace), and the remainder equally. Required: 1. Journalize the…