The partnership of Nott and Reese reportsnet income of P6o,000. The partners shareequally in income and losses. The entry torecord the partners' share of net incomewill include a*credit to Income Summary for P60,000.credit to Nott, Capital for P30,000.debit to Reese, Capital for P30,000.credit to Reese, Drawing for P30,000.

The partnership comes into existence when two or more persons agree to do the business and further…

Answered: The partnership of Nott and Reese…

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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Xavier and Yolanda have original investments of $46,000 and $103,600, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $26,800 and $31,800, respectively; and the remainder to be divided equally. How much of the net income of $111,000 is allocated to Xavier? Oa. $47,240 Ob. $56,688 Oc. $36,000 Od. $26,800
Meman
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: Cash Other assets Hardwick, loan Total assets $ 93,000 815,000 44,000 Beginning balances Sold assets $952,000 Accounts payable Ferris, loan Hardwick, capital Saunders, capital Ferris, capital Adjusted balances Max loss on remaining noncash assets Paid liabilities Safe payments Total liabilities and capital The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $125,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.) HARDWICK, SAUNDERS, AND FERRIS Proposed Schedule of Liquidation Cash Other Assets $ 48,000 54,000 380,000 240,000 230,000 $952,000 Accounts Payable Hardwick, Loan and Capital Saunders, Capital Ferris, Loan & Capital
Show the computation
A, B and C are partners sharing profit in the ratio of 5:6:4 . A new partner D is to be admitted after which the future profit will be shares in the ratio 5:3:3:3. Goodwill is valued at $30000. Prepare the journal entries regarding: Creation of goodwill Elimination of good will Contribution made by existing partners to the retired partner.
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…
Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn). Their capital balances are $80,000 and $120,000, respectively. The partnership generated net income of $30,000. What is Saturn's capital balance after closing the revenue and expense accounts to the capital accounts?
Partners B1 and B2 share income in a 2:1 ratio, respectively. Each partner receives an annualsalary allowance of P72,000. If the salaries are recorded in the accounts of the partnership as anexpense rather than treated as an allocation of profit, the total amount allocated to each partner forsalaries and profit would be a. unchanged for both B1 and B2b. less for both B1 and B2c. more for B1 and less for B2d. more for B2 and less for B1d. more for B2 and less for B1
(Cash and Non-cash Contributions) Give the entry to record Partner Luffy into the partnership under each of the independent assumptions: a. Cash of P400.000b. Accounts receivable of P500,000 with an allowance for uncollectible accounts of 150,000. c. Inventories that cost P300,000 using the moving average method accepted by the partnership at its FIFO value of80% of average cost. d. Equipment that costs P900,000 with a book value of P300,000 after four years of use without salvage value. The equipment should have been depreciated over a 10 year useful life.
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. Cash Grayson Jackson, Capital Harry Barge, Capital Lewan Gorman, Capital b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ Harry Barge $ Lewan Gorman $
The following debit (credit) balances on the account of GYC Partnership are as follows: Gie, Capital (P1,000,000) Yan, Capital ( 1,200,000) Carl, Capital ( 800,000) Gie, Loan 100,000 Yan, Loan 300,000 Carl, Loan ( 100,000) Gie, Yan and Carl currently allocate their profits and losses based on the ratio of 3:4:3, respectively. With the consent of the remaining partners, Yan decided to retire from the partnership by selling 75% of his capital to Ben (outsider) for P750,000, and the remaining interest (including the loan) was sold to the partnership in which he received P50,000 in total. Required: Prepare journal entries regarding the partnership dissolution.
Xales and Yolanda have original investments of $45,500 and $110,000, respectively, in a partnership. The articles of partnership include the following provisions regard division of net income: interest of onginal investment at 20%; salary allowances of $28,400 and $29,200, respectively, and the remainder to be divided equally. How much net income of $109,700 is allocated to Yolanda? a. $51,200 b. $61,700 c. $22,000 d. $78,040

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