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Exercise 15-2 Tom and Julie formed a management consulting partnership on January 1, 2016. The fair value of the net assets invested by each partner follows: Tom $13,300 7,700 1,900 32,000 Julie $11,600 6,600 900 Cash Accounts receivable Office supplies Office equipment Land Accounts payable Mortgage payable 2,100 30,500 5,200 17,500 During the year, Tom withdrew $15,500 and Julle withdrew $12,900 in anticipation of operating profits. Net profit for 2016 was $52,600, which is to be allocated based on the...
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Exercise 15-2
Tom and Julie formed a management consulting partnership on January
1, 2016. The fair value of the net assets invested by each partner
follows:
Tom
Julie
Cash
$14,300
$12,500
Accounts receivable
7,600
5,400
Office supplies
1,900
900
Office equipment
29,400
—
Land
—
30,400
Accounts payable
1,900
5,300
Mortgage payable
—
19,900
During the year, Tom withdrew $14,000 and Julie withdrew $12,600 in
anticipation of operating profits. Net profit for 2016 was $53,200,
which is to be allocated...
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Exercise 15-2 Tom and Julie formed a management consulting partnership on January 1, 2016. The fair value of the net assets invested by each partner follows: Tom $13,300 7,700 1,900 32,000 Julie $11,600 6,600 900 Cash Accounts receivable Office supplies Office equipment Land Accounts payable Mortgage payable 2,100 30,500 5,200 17,500 During the year, Tom withdrew $15,500 and Julle withdrew $12,900 in anticipation of operating profits. Net profit for 2016 was $52,600, which is to be allocated based on the...
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Tom and Julle formed a management consulting partnership on January 1, 2016. The fair value of the net assets invested by each partner follows: Tom $11,900 7,200 1,900 32,100 Julle $12,100 5,400 700 Cash Accounts receivable Office supplies Office equipment Land Accounts payable Mortgage payable 1,800 29,700 4,800 20,400 During the year, Tom withdrew $14,100 and Julle withdrew $12,200 in anticipation of operating profits. Net profit for 2016 was $54,700, which is to be allocated based on the original net...
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Exercise 15-5
On January 1, 2016, Tony and Jon formed T&J Personal
Financial Planning with capital investments of $482,900 and
$339,900, respectively. The partners wanted to draft a profit and
loss agreement that would reward each individual for the resources
invested in the partnership. Accordingly, the partnership agreement
provides that profits are to be allocated as follows:
1.
Annual salaries of $41,400 and $65,100 are granted to Tony and
Jon, respectively.
2.
In addition to the salary, Jon is entitled...
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Julie Harris, William Gosse, and Regina Ryan started a
partnership to provide mobile tax services. The partners’ capital
account at the beginning of 2021 was Harris, $ 120,000; Gosse, $
180,000; and Ryan, $ 90,000. The partnership agreement states that
the partners will share profit equally.
On December 31, 2021, the partnership reported a loss of $
21,000 for the year. During the year, Harris withdrew $ 80,000 and
Gosse withdrew $ 140,000. Ryan did not make any withdrawals.
On...
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On March 1, Eckert and Kelley formed a partnership. Eckert
contributed $83,000 cash, and Kelley contributed land valued at
$66,400 and a building valued at $96,400. The partnership also took
Kelley’s $73,000 long-term note payable associated with the land
and building. The partners agreed to share income as follows:
Eckert gets an annual salary allowance of $29,000, both get an
annual interest allowance of 10% of their initial capital
investment, and any remaining income or loss is shared equally. On...
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Help Save & On March 1. Eckert and Kelley formed a partnership. Eckert contributed $74,000 cash, and Kelley contributed land valued at $59.200 and a building valued at $89.200. The partnership also took Kelley's $64,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $30,500 both aet an annual Interest allowance of 11% of their initial capital investment, and any remaining income or loss is...
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The events that follow pertain to a partnership formed in
February 2013 by Mercian Zadoney and Michael Slater to operate a
floor-cleaning company:
Feb. 14, 2013
The partnership was formed. Zadoney transferred to the
partnership $160,000 cash, land worth $160,000, a building worth
$960,000, and a mortgage on the building of $480,000. Slater
transferred to the partnership $80,000 cash and equipment worth
$320,000.
Dec. 31, 2013
During 2013, the partnership earned income of just $168,000. The
partnership agreement specifies that...
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Class Work 1 The following events pertain to a partnership formed by Papa Hubert and Wimpy Christie to operate a straw doll making company. 2011 Feb. 14 The partnership was formed. Papa Hubert transferred to the partnership$80,000 cash, land worth $80,000, a building worth $480,000, and a mortgage on the building of $240,000. Wimpy Christie transferred to the partnership $40,000 cash and equipment worth $160,000 Dec.31 During 2011, the partnership earned income of just $84,000. The partnership agreement specifies that...
Exercise 15-2 Tom and Julie formed a management consulting partnership on January 1, 2016. The fair value of the net assets invested by each partner follows: Tom $13,300 7,700 1,900 32,000 Julie $11,600 6,600 900 Cash Accounts receivable Office supplies Office equipment Land Accounts payable Mortgage payable 2,100 30,500 5,200 17,500 During the year, Tom withdrew $15,500 and Julle withdrew $12,900 in anticipation of operating profits. Net profit for 2016 was $52,600, which is to be allocated based on the...
Exercise 15-2
Tom and Julie formed a management consulting partnership on January
1, 2016. The fair value of the net assets invested by each partner
follows:
Tom
Julie
Cash
$14,300
$12,500
Accounts receivable
7,600
5,400
Office supplies
1,900
900
Office equipment
29,400
—
Land
—
30,400
Accounts payable
1,900
5,300
Mortgage payable
—
19,900
During the year, Tom withdrew $14,000 and Julie withdrew $12,600 in
anticipation of operating profits. Net profit for 2016 was $53,200,
which is to be allocated...
Exercise 15-2 Tom and Julie formed a management consulting partnership on January 1, 2016. The fair value of the net assets invested by each partner follows: Tom $13,300 7,700 1,900 32,000 Julie $11,600 6,600 900 Cash Accounts receivable Office supplies Office equipment Land Accounts payable Mortgage payable 2,100 30,500 5,200 17,500 During the year, Tom withdrew $15,500 and Julle withdrew $12,900 in anticipation of operating profits. Net profit for 2016 was $52,600, which is to be allocated based on the...
Tom and Julle formed a management consulting partnership on January 1, 2016. The fair value of the net assets invested by each partner follows: Tom $11,900 7,200 1,900 32,100 Julle $12,100 5,400 700 Cash Accounts receivable Office supplies Office equipment Land Accounts payable Mortgage payable 1,800 29,700 4,800 20,400 During the year, Tom withdrew $14,100 and Julle withdrew $12,200 in anticipation of operating profits. Net profit for 2016 was $54,700, which is to be allocated based on the original net...
Exercise 15-5
On January 1, 2016, Tony and Jon formed T&J Personal
Financial Planning with capital investments of $482,900 and
$339,900, respectively. The partners wanted to draft a profit and
loss agreement that would reward each individual for the resources
invested in the partnership. Accordingly, the partnership agreement
provides that profits are to be allocated as follows:
1.
Annual salaries of $41,400 and $65,100 are granted to Tony and
Jon, respectively.
2.
In addition to the salary, Jon is entitled...
Help Save & On March 1. Eckert and Kelley formed a partnership. Eckert contributed $74,000 cash, and Kelley contributed land valued at $59.200 and a building valued at $89.200. The partnership also took Kelley's $64,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $30,500 both aet an annual Interest allowance of 11% of their initial capital investment, and any remaining income or loss is...
Class Work 1 The following events pertain to a partnership formed by Papa Hubert and Wimpy Christie to operate a straw doll making company. 2011 Feb. 14 The partnership was formed. Papa Hubert transferred to the partnership$80,000 cash, land worth $80,000, a building worth $480,000, and a mortgage on the building of $240,000. Wimpy Christie transferred to the partnership $40,000 cash and equipment worth $160,000 Dec.31 During 2011, the partnership earned income of just $84,000. The partnership agreement specifies that...