College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Question
Chapter 19, Problem 3SEA
1.
To determine
Prepare the lower portion of the income statement showing the allocation of net income between Partner K and Partner E.
2.
To determine
Prepare a statement of partners’ equity showing each individual partner’s equity.
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Solange and Louis enter into a partnership agreement. Solange contributes $65,000 in capital. Louis contributes $95,000 in capital. The agreement stipulates that profits and losses will be shared in the ratio of their respective capital account balances. The net income for the year is $32,000.
Which of the following amounts should be credited to Louis’s capital account?
$19,000
$32,000
$16,000
$13,000
The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following
sequence:
• Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit.
• Each partner receives 10 percent interest on average capital investment.
Any residual profit or loss is divided equally.
The average capital investments for 2021 were as follows:
Jones
King
Lane
The partnership earned $84,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to
the partners. (Loss amounts should be indicated with a minus sign.)
Net income
Bonus
Interest
$ 190,000
380,000
570,000
Remainder to allocate
Total allocation
Jones
King
Lane
Total
Determine net income and record the share in the profit
Chapter 19 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
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