Partners can agree to any method of dividing income or loss. The common methods to divide income or loss use (1)a stated ratio basis (2) the ratio of capital balances (3) the salary and interest allowances and any remainder according to a fixed ratio. To calculate: Prepare a table with the following capital headings. Use the table to show how to distribute net income of $450000 for the calendar year under each of the alternative plans being considered.

Question

Trial Balance Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts: Cash (1) 40,000 (2) 4,000 (7) 13,100 (3) 5,000 (4) 6,175 (6) 6,000 (9) 1,500 Equipment (3) 15,000 Dividends (9) 1,500 Accounts Receivable Accounts Payable Service Revenue (5) 20,500 (7) 13,100 (6) 6,000 (3) 10,000 (5) 20,500 Supplies (2) 4,000 (8) 2,200 Common Stock Operating Expenses (1) 40,000 (4) 6,175 (8) 2,200

Answer 1

Question

Chapter 12, Problem 4PSA

To determine

Introduction:

Partners can agree to any method of dividing income or loss. The common methods to divide income or loss use (1)a stated ratio basis (2) the ratio of capital balances (3) the salary and interest allowances and any remainder according to a fixed ratio.

To calculate:

Prepare a table with the following capital headings. Use the table to show how to distribute net income of $450000 for the calendar year under each of the alternative plans being considered.

To determine

Introduction:

A financial report that depicts the changes in total of partner's capital accounts during an accounting period.

To calculate:

Prepare a statement of partners' equityshowing the allocation of income to the partners assuming they agree to use plan (c);that income earned is$209000,and that Mo,Lu and Barb withdraw$34000,$48000 and $64000 ,respectively, at year end.

To determine

Introduction:

Income summary account is closed in the following manner:

To calculate:

Prepare the December 31 journal entry to close Income summary assuming they agree to use Plan C and that net income is $209000.Also close the withdrawals accounts.

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Trial Balance Rocky Mountain Tours Co. is a travel agency. The nine transactions recorded by Rocky Mountain Tours during June 20Y2, its first month of operations, are indicated in the following T accounts: Cash (1) 40,000 (2) 4,000 (7) 13,100 (3) 5,000 (4) 6,175 (6) 6,000 (9) 1,500 Equipment (3) 15,000 Dividends (9) 1,500 Accounts Receivable Accounts Payable Service Revenue (5) 20,500 (7) 13,100 (6) 6,000 (3) 10,000 (5) 20,500 Supplies (2) 4,000 (8) 2,200 Common Stock Operating Expenses (1) 40,000 (4) 6,175 (8) 2,200

Q1: Wyatt Company had three intangible assets at the end of 2024 (end of the fiscal year): Computer software and Web development technology purchased on January 1, 2024, for $70,000. The technology is expected to have a useful life of four years. A patent purchased from R. Jay on January 1, 2024 for a cash cost of $6,000. Jay had registered the patent with the Canadian Intellectual Property Office seven years earlier on January 1, 2017. The cost of the patent is amortized over its legal life. A trademark that was internally developed and registered with the Canadian government for $13,000 on November 1, 2023. Management decided that the trademark has an indefinite life. Required: 1. What is the acquisition cost of each intangible asset? tech 70k patent 6k trademark 13k 2. Compute the amortization of each intangible asset at December 31, 2024. The company does not use contra accounts. (Round the final answers to the nearest whole dollar.) tech 17.5k patent: ???? 3-a.…

Q1:Wyatt Company had three intangible assets at the end of 2024 (end of the fiscal year): Computer software and Web development technology purchased on January 1, 2024, for $70,000. The technology is expected to have a useful life of four years. A patent purchased from R. Jay on January 1, 2024 for a cash cost of $6,000. Jay had registered the patent with the Canadian Intellectual Property Office seven years earlier on January 1, 2017. The cost of the patent is amortized over its legal life. A trademark that was internally developed and registered with the Canadian government for $13,000 on November 1, 2023. Management decided that the trademark has an indefinite life. Required: 1. What is the acquisition cost of each intangible asset?tech 70kpatent 6ktrademark 13k 2. Compute the amortization of each intangible asset at December 31, 2024. The company does not use contra accounts. (Round the final answers to the nearest whole dollar.)tech 17.5k patent: ???? 3-a. Compute the amount of…

Answer 2

Question

Chapter 12, Problem 4PSA

To determine

Introduction:

Partners can agree to any method of dividing income or loss. The common methods to divide income or loss use (1)a stated ratio basis (2) the ratio of capital balances (3) the salary and interest allowances and any remainder according to a fixed ratio.

To calculate:

Prepare a table with the following capital headings. Use the table to show how to distribute net income of $450000 for the calendar year under each of the alternative plans being considered.

To determine

Introduction:

A financial report that depicts the changes in total of partner's capital accounts during an accounting period.

To calculate:

Prepare a statement of partners' equityshowing the allocation of income to the partners assuming they agree to use plan (c);that income earned is$209000,and that Mo,Lu and Barb withdraw$34000,$48000 and $64000 ,respectively, at year end.

To determine

Introduction:

Income summary account is closed in the following manner:

To calculate:

Prepare the December 31 journal entry to close Income summary assuming they agree to use Plan C and that net income is $209000.Also close the withdrawals accounts.

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Answer 3

Question

Chapter 12, Problem 4PSA

To determine

Introduction:

Partners can agree to any method of dividing income or loss. The common methods to divide income or loss use (1)a stated ratio basis (2) the ratio of capital balances (3) the salary and interest allowances and any remainder according to a fixed ratio.

To calculate:

Prepare a table with the following capital headings. Use the table to show how to distribute net income of $450000 for the calendar year under each of the alternative plans being considered.

To determine

Introduction:

A financial report that depicts the changes in total of partner's capital accounts during an accounting period.

To calculate:

Prepare a statement of partners' equityshowing the allocation of income to the partners assuming they agree to use plan (c);that income earned is$209000,and that Mo,Lu and Barb withdraw$34000,$48000 and $64000 ,respectively, at year end.

To determine

Introduction:

Income summary account is closed in the following manner:

To calculate:

Prepare the December 31 journal entry to close Income summary assuming they agree to use Plan C and that net income is $209000.Also close the withdrawals accounts.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 4PSA

To determine

Introduction:

Partners can agree to any method of dividing income or loss. The common methods to divide income or loss use (1)a stated ratio basis (2) the ratio of capital balances (3) the salary and interest allowances and any remainder according to a fixed ratio.

To calculate:

Prepare a table with the following capital headings. Use the table to show how to distribute net income of $450000 for the calendar year under each of the alternative plans being considered.

To determine

Introduction:

A financial report that depicts the changes in total of partner's capital accounts during an accounting period.

To calculate:

Prepare a statement of partners' equityshowing the allocation of income to the partners assuming they agree to use plan (c);that income earned is$209000,and that Mo,Lu and Barb withdraw$34000,$48000 and $64000 ,respectively, at year end.

To determine

Introduction:

Income summary account is closed in the following manner:

To calculate:

Prepare the December 31 journal entry to close Income summary assuming they agree to use Plan C and that net income is $209000.Also close the withdrawals accounts.

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Answer 5

Chapter 12, Problem 4PSA

To determine

Introduction:

Partners can agree to any method of dividing income or loss. The common methods to divide income or loss use (1)a stated ratio basis (2) the ratio of capital balances (3) the salary and interest allowances and any remainder according to a fixed ratio.

To calculate:

Prepare a table with the following capital headings. Use the table to show how to distribute net income of $450000 for the calendar year under each of the alternative plans being considered.

To determine

Introduction:

A financial report that depicts the changes in total of partner's capital accounts during an accounting period.

To calculate:

Prepare a statement of partners' equityshowing the allocation of income to the partners assuming they agree to use plan (c);that income earned is$209000,and that Mo,Lu and Barb withdraw$34000,$48000 and $64000 ,respectively, at year end.

To determine

Introduction:

Income summary account is closed in the following manner:

To calculate:

Prepare the December 31 journal entry to close Income summary assuming they agree to use Plan C and that net income is $209000.Also close the withdrawals accounts.

Answer 6

Chapter 12, Problem 4PSA

To determine

Introduction:

Partners can agree to any method of dividing income or loss. The common methods to divide income or loss use (1)a stated ratio basis (2) the ratio of capital balances (3) the salary and interest allowances and any remainder according to a fixed ratio.

To calculate:

Prepare a table with the following capital headings. Use the table to show how to distribute net income of $450000 for the calendar year under each of the alternative plans being considered.

Answer 7

Chapter 12, Problem 4PSA

To determine

Introduction:

Partners can agree to any method of dividing income or loss. The common methods to divide income or loss use (1)a stated ratio basis (2) the ratio of capital balances (3) the salary and interest allowances and any remainder according to a fixed ratio.

To calculate:

Prepare a table with the following capital headings. Use the table to show how to distribute net income of $450000 for the calendar year under each of the alternative plans being considered.

Answer 8

To determine

Introduction:

A financial report that depicts the changes in total of partner's capital accounts during an accounting period.

To calculate:

Prepare a statement of partners' equityshowing the allocation of income to the partners assuming they agree to use plan (c);that income earned is$209000,and that Mo,Lu and Barb withdraw$34000,$48000 and $64000 ,respectively, at year end.

Answer 9

To determine

Introduction:

A financial report that depicts the changes in total of partner's capital accounts during an accounting period.

To calculate:

Prepare a statement of partners' equityshowing the allocation of income to the partners assuming they agree to use plan (c);that income earned is$209000,and that Mo,Lu and Barb withdraw$34000,$48000 and $64000 ,respectively, at year end.

Answer 10

To determine

Introduction:

Income summary account is closed in the following manner:

To calculate:

Prepare the December 31 journal entry to close Income summary assuming they agree to use Plan C and that net income is $209000.Also close the withdrawals accounts.

Answer 11

To determine

Introduction:

Income summary account is closed in the following manner:

To calculate:

Prepare the December 31 journal entry to close Income summary assuming they agree to use Plan C and that net income is $209000.Also close the withdrawals accounts.

Answer 12

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Ch. 12 - Prob. 1QS Ch. 12 - Prob. 2QS Ch. 12 - Prob. 3QS Ch. 12 - Prob. 4QS Ch. 12 - Prob. 5QS Ch. 12 - Prob. 6QS Ch. 12 - Prob. 7QS Ch. 12 - Prob. 8QS Ch. 12 - QS 12-9 Liquidation of partnership P5 The Field,...Ch. 12 - Prob. 10QS

Introduction: Income summary account is closed in the following manner: To calculate: Prepare the December 31 journal entry to close Income summary assuming they agree to use Plan C and that net income is $209000.Also close the withdrawals accounts.

Chapter 12 Solutions

Introduction:

Income summary account is closed in the following manner:

To calculate:

Prepare the December 31 journal entry to close Income summary assuming they agree to use Plan C and that net income is $209000.Also close the withdrawals accounts.