Accounting for allocation of income among partners: The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio. The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits. Requirement1: TheStatement showing the allocation of loss.

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem E12.17E

To determine

Accounting for allocation of income among partners:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

Requirement1:

TheStatement showing the allocation of loss.

To determine

Requirement2:

The Statement showing the allocation of income.

To determine

Requirement3:

The Statement showing the allocation of income.

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Standard Quantity Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Price or Rate Standard Cost Direct materials 5.90 pounds $0.70 per pound $4.13 Direct labor 0.50 hours $34.50 per hour $ 17.25 Variable manufacturing 0.50 hours $8.60 per hour $ 4.30 overhead During March, the following activity was recorded by the company: -The company produced 2,500 units during the month. -A total of 19,500 pounds of material were purchased at a cost of $13,680. -There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,720 pounds of material remained in the warehouse. -During March, 1,100 direct labor-hours were worked at a rate of $31.50 per hour. -Variable manufacturing overhead costs during March totaled $14,161. -The direct materials purchases…

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Information for Southgate Company's direct labor costs for the month of March 2021 was as follows: Actual direct labor hours: 42,000 hours Standard direct labor hours: 40,000 hours Total direct labor payroll: $315,000 Direct labor efficiency variance: unfavorable $5,000 What is Southgate's direct labor price (or rate) variance?

Answer 2

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem E12.17E

To determine

Accounting for allocation of income among partners:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

Requirement1:

TheStatement showing the allocation of loss.

To determine

Requirement2:

The Statement showing the allocation of income.

To determine

Requirement3:

The Statement showing the allocation of income.

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem E12.17E

To determine

Accounting for allocation of income among partners:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

Requirement1:

TheStatement showing the allocation of loss.

To determine

Requirement2:

The Statement showing the allocation of income.

To determine

Requirement3:

The Statement showing the allocation of income.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem E12.17E

To determine