!Required information[The following information applies to the questions displayed below.]Turtle Creek Partnership had the following revenues, expenses, gains, losses, and distributions:Sales revenueLong-term capital gainsCost of goods soldDepreciation-MACRSAmortization of organization costs.Guaranteed payments to partners for general managementCash distributions to partners$ 65,500$ 4,800Ordinary income (loss)$ (22,100)$ (7,900)$ (1,240)$ (15,600)$ (3,600)a. Given these items, what is Turtle Creek's ordinary business income (loss) for the year? b. What are Turtle Creek's separately stated items for the year?Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correctanswer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question markwill be automatically graded as incorrect.Sales revenueLong-term capital gainsCost of goods soldDepreciation MACRSAmortization of organization costsGuaranteed paymentsCash distributions

Ordinary business income refers to the term which is defined as any earnings of the company that is…

Turtle Creek Partnership had the following revenues, expenses, gains, losses, and distributions: $ 65,500 $ 4,800 $ (22,100) $ (7,900) $ (1,240) $ (15,600) $ (3,600) Sales revenue Long-term capital gains Cost of goods sold Depreciation-MACRS Amortization of organization costs. Guaranteed payments to partners for general management Cash distributions to partners

Turtle Creek Partnership had the following revenues, expenses, gains, losses, and distributions: $ 65,500 $ 4,800 $ (22,100) $ (7,900) $ (1,240) $ (15,600) $ (3,600) Sales revenue Long-term capital gains Cost of goods sold Depreciation-MACRS Amortization of organization costs. Guaranteed payments to partners for general management Cash distributions to partners

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

Admission by Investment of Assets Partners Quinsay and Buenaventura have capital balances of P100,000 and P40,000 and share income in a ratio of 4:1, respectively. Rementina is to be admitted into the partnership with a 20% interest in the business. What is the journal entries and computations to record the admission of Rementina for each of the following independent situations: 1. Rementina invested P60,000. Total capital will be P200,000. 2. Rementina purchased the 20% interest by paying Quinsay P22,000 and Buenaventura P11,000. 3. Rementina invested P32,000. Total capital will be P172,000.
The capital balance and the profit and loss sharing ratio of J, K, and R partnerships as of January 1, 1996 are: Capital J (40%) $120.000.000 Capital K (20%). $80.000.000 Runo Capital (40%) $140.000.000 On January 3, 1996, the partners agreed to accept B into the partnership with a 25% interest in the capital and a return on investment of $110,000,000. Partnership assets are not revalued. Requested: 1. Determine the capital balance of the four partners after the entry of Beno. 2. What is the profit and loss sharing ratio for Jedi, Kintan, Runo and Beno?
1. Show solution in good accounting form
CC admits DD as a partner in business. Accounts in the ledger for CC on November 30, 20x4, just before the admission of DD, show the following balances: Cash.... P 6,800 Accounts Receivable... 14,200 Merchandise Inventory... 20,000 Accounts Payable.. . 8,000 CC, Capital... 33,000 It is agreed that for the purposes of establishing CC's interest the following adjustments shall be made: 1. An allowance for doubtful accounts of 3% of account receivable is to be established. 2. The merchandise inventory is to be valued at P23,000. 3. Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. 1 DD ic to invest sufficient cash to obtain a 1/3 interest in the
Rugged Sports Enterprises LP is organized as a limited partnership consisting of two individual partners: Hockey LP and Football LP. Hockey LP $ 339,000 35,850 Football LP $ 1,389,900 734,925 (150,000) $ 374,850 $ 1,974,825 Beginning-year capital balance Annual net income Cash distribution Ending-year capital balance Compute partner return on equity for each LPand the total) for the year using the above data from Rugged Sports Enterprises LP. Complete this question by entering your answers in the tabs below. Return on Partner Return Equity on Equity Compute partner return on equity for the year using the above data from Rugged Sports Enterprises LP. Return on Equity. Rugged Sports Enterprises LP Choose Numerator: / Choose Denominator: 1 1 Total $ 1,728,900 770,775 (150,000) $ 2,349,675 = = Return On Equity Equity Return On
Appropriation of profits General Journal Allocate $412,200 net income by providing annual salary allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas; granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally, Supporting Calculations Net income Salary allowances Balance after salary allowances Interest allowances Balance after interest and salaries Balance allocated equally Balance of income Shares of the partners Ries $ 38,000 $ 5,600✔ 45,600 x Bax 33,000 $ 7,200 89,200 $ 40,200 Thomas 45,000 8,000 $ 53,000 Total 116,000 (116,000) 20,800 (136,800) 45,600 $ (182,400) rnal
What is Koothrapali’s capital balance after adjustments but before making any cash investment or withdrawal? How much cash shall Koothrapali invest (withdraw) to comply with the partnership agreement?
1. Show solution in good accounting form
The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000, liabilities 30000, Ali capital 50000 and Basil capital 20000. The income ration 3:2. The partnership was liquidated and non-cash assets were sold for 110000. The balance of cash after sales on non-cash assets will be - O a. 120000 O b. 140000 O c. 130000 Od 150000
If the total cash available for distribution to the partners as settlement of their claims in the partnership was P278,000, for how much were the non-cash assets sold?
Before liquidation, the following is the financial position of the partnership W, X, Y and Z: W, capital 275,000 W, loan 50,000 X, capital 225,000 Y, capital 257,500 Z, capital 342,500 P&L ratio is 4:3:2:1, respectively. 300,000 was received from certain assets are sold and are distributed to partners. What cash amount should Z receive? a. 300,000 b. 0 c. 135,834 d. 166,166
A and B enter into a partnership agreement contributing their respective business' assets at fair market values: Cash Accounts Receivable Machinery and Equipment Land A 60,000 200,000 120,000 B 200,000 430,000 Additional information: An Allowance for Doubtful Accounts of 2% of accounts receivable is to be set up; . The land is subject to a mortgage loan of P24,000 which the partnership will assume. The partnership agreement states that A and B share profits and losses, 40% and 60%, respectively, and partners agreed to bring their capital balances in proportion to the profit and loss ratio. Compute the amount of bonus that should be given to one partner.