Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 12, Problem 6DQ
To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

To explain: Is it possible that the share of partners’ net income is more or less than the amount withdrawn?

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During the current year, Marsha Engles withdrew $4,000 monthly from the partnership of Engles and Cox Water Management Consultants. Is it possible that  her share of partnership net income for the current year might be more or less than $48,000? Explain.
Regina Harrison is a partner in Pressed for Time. An analysis of Regina Harrison's capital account indicates that during the most recent year, she withdrew $20,000 from the partnership. Her share of the partnership's net loss was $16,000 and she made an additional equity contribution of $10,000. Her capital account ended the year at $150,000. What was her capital balance at the beginning of the year? a. $124,000 O b. $176,000 ○ c. $192,000 Od. $144,000
olivia Greer is a partner in Made for You. An analysis of Greer's capital account indicates during the most recent year, she withdrew $21,000 from the partnership. Her share of partnership's net loss was $16,500 and she made an additional equity contribution of000. Her capital account ended the year at $151,000. What was her capital balance at beginning of the year?

Chapter 12 Solutions

Accounting (Text Only)

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