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Net Income |
50000 |
36000 |
Less: Salaries |
|
|
Less: Interest @10% of opening Capital Balance |
|
|
Remaining Net Income ( to be shared in the Ratio of 60%: 40% between McGill and Smyth) |
6000 |
-8000 |
Share of McGill= 60% * Remaining Income |
3600 |
-4800 |
Share of Smyth= 40% * Remaining Income |
2400 |
-3200 |
When Net Income is
$50000
Particulars |
McGill |
Smyth |
Capital on Jan 1 |
50000 |
40000 |
Add: Salaries |
22000 |
13000 |
Add: Interest |
5000 |
4000 |
Add: Share of Income |
3600 |
2400 |
Closing Capital |
80600 |
59400 |
When Net Income is $36000
Particulars |
McGill |
Smyth |
Capital on Jan 1 |
50000 |
40000 |
Add: Salaries |
22000 |
13000 |
Add: Interest |
5000 |
4000 |
Add: Share of Income |
-4800 |
-3200 |
Closing Capital |
72200 |
53800 |
Accounting Entries for Allocation of Net Income:
(1) Debit The Profit & Loss Account with $6000
Credit McGill
Exercise 12-4 McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively....
Exercise 12-4 McGill and Smyth have capital balances on January 1 of $57,000 and $47,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $84,000. (If an amount reduces the account balance then...
Exercise 12-4 McGill and Smyth have capital balances on January 1 of $57,000 and $47,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $84,000. (If an amount reduces the account balance then...
McGill and Smyth have capital balances on January 1 of $42,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $23,000 for McGill and $14,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $84,000. (If an amount reduces the account balance then enter with...
*Exercise 12-04 a-b (Video) McGill and Smyth have capital balances on January 1 of $41,000 and $34,000, rspectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGill and $17,000 for Smyth, (2) Interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Prepare a schedule showing the distribution of net income, assuming net income is $85,000. (If an amount reduces thcunt balance then...
Is (Video) McGill and Smyth have capital balances on January 1 of $53,000 and $34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $17,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $66,000. (If an amount reduces the account balance then...
McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $20,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement...
everything is correct except red boxes Exercise 12-4 McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income- Sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Your answer is partially correct. Try again. (1) Prepare a schedule showing the distribution of net...
Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $54,000 and $37,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 for McGill and $12,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (a) Your answer is partially correct. Try again. (1) Prepare a schedule showing the distribution of net income,...
McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $20,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Please fill out the incorrect chart. McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides...
Not sure how to finish the questions. Exercise 12-04 a-b (Video) McGill and Smyth have capital balances on January 1 of $48,000 and $30,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $18,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is...