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Clark and Dave are partners in the Company. following manner: They share income and losses in the (1) Each partner is to receive a salary of $75,000; (2) Each partner is to receive 5% interest on beginning capital balances; and (3) Any remainder profit/loss is to be split in a ratio of 6:4 (Clark/Dave). The partners withdraw an amount equal to their salary each year. On January 1, 2017, Clark's capital balance was $1,000,000 and Dave's was $900,000. Assuming each...
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Please show all the work. Thank you for your help!
Clark and Dave are partners in the Company. They share income and losses in the following manner: (1) Each partner is to receive a salary of $75,000; (2) Each partner is to receive 5% intereston beginning capital balances; and (3) Any remainder profitloss is to be split in a ratio of 6:4 (Clark/Dave). The partners withdraw an amount equal to their salary each year. On January 1,2017, Clark's capital balance...
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The partnership agreement of Walt, Henry and Victoria provides
that profits and losses are to be divided among the partners as
follows:
Walt is to receive a salary allocation of $10,000 for managing
the partnership business.
Partners are to receive 10% interest on their average
partner capital balances during the year. Note: Drawings are
excluded from the computation of average partner
capital.
Remaining profits/losses are to be divided as follows: Walt,
30%; Henry, 30%; and Victoria, 40%.
Walt had a...
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Batman, Spiderman and Mr. Freeze are partners in the accounting firm of BSF-CPA They share profits and losses as follows: Spiderman Batman Mr. Freeze Partners receive 12% interest on their beginning of the year capital balance Mr. Freeze receives a $30,000 salary while Batman and Spiderman each receive $40,000 salaries All 3 take their salary in cash. In addition, Mr. Freeze takes $1000 out of the partnership each month to pay for his tanning-salon membership. At the beginning of 2017...
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Allocation of Income for Partners. Determine each partner's share and make the appropriate general journal entry to close the Income Summary account to the capital accounts. Khalid, Dina, and James are partners with beginning-year capital balances of $400,000, $320,000, and $160,000, respectively. The partners agreed to share income and loss as follows: Salary of $30,000 to Khalid, $50,000 to Dina, and $55,000 to James. An interest allowance of 10% on beginning-of-the year capital balances. Any remaining balance is to be...
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PROBLEM 18 (18 pts.)
Partners Conner, Tuitt, and Heyward share profits and losses in
a 3:4:5 ratio, respectively. Their average capital balances for the
quarter year were $50,000, $70,000, and $80,000, respectively.
Conner and Heyward each receive a “salary” of $8,000 each
quarter due to their years of experience
in the field. All three partners receive 5% interest on their
average capital balance. The net income
for this quarter was $25,100.
Prepare a schedule that shows the distribution of the...
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Gray, Stone, and Lawson open an accounting practice on January
1, 2016, in San Diego, California, to be operated as a partnership.
Gray and Stone will serve as the senior partners because of their
years of experience. To establish the business, Gray, Stone, and
Lawson contribute cash and other properties valued at $420,000,
$390,000, and $195,000, respectively. An articles of partnership
agreement is drawn up. It has the following stipulations:
Personal drawings are allowed annually up to an amount equal...
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Early in 2018, the partners of Fitz, Leu and Wen sought your assistance to help with their partnership accounting. They began the new business in 2017 but did not hire a professional accountant to help them. Fitz and Leu began the partnership contributing $170,000 and $120,000 in cash, respectively. Fitz was to work occasionally at the business, and Leu was to be employed full-time. They decided that year-end profits and losses should be assigned as follows: 1. Each partner was...
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Gray, Stone, and Lawson open an accounting practice on January
1, 2016, in San Diego, California, to be operated as a partnership.
Gray and Stone will serve as the senior partners because of their
years of experience. To establish the business, Gray, Stone, and
Lawson contribute cash and other properties valued at $280,000,
$250,000, and $125,000, respectively. An articles of partnership
agreement is drawn up. It has the following stipulations:
Personal drawings are allowed annually up to an amount equal...
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Problem 2 Land M are partners in Elem Co. each contributing $50,000 towards their capital. On March 31, 2018 the business reported the following: Sales turnover of $900,000 Cost of goods sold $400,000 Operating Expenses $200,000 1. Land M are to be paid a salary of $3,000 and $2,000 salary per month respectively. 2. Both the partners are to receive interest on capital @6% per annum. 3. Mis to receive a bonus of $30,000 if sales exceeded $600,000 in any...
Clark and Dave are partners in the Company. following manner: They share income and losses in the (1) Each partner is to receive a salary of $75,000; (2) Each partner is to receive 5% interest on beginning capital balances; and (3) Any remainder profit/loss is to be split in a ratio of 6:4 (Clark/Dave). The partners withdraw an amount equal to their salary each year. On January 1, 2017, Clark's capital balance was $1,000,000 and Dave's was $900,000. Assuming each...
Please show all the work. Thank you for your help!
Clark and Dave are partners in the Company. They share income and losses in the following manner: (1) Each partner is to receive a salary of $75,000; (2) Each partner is to receive 5% intereston beginning capital balances; and (3) Any remainder profitloss is to be split in a ratio of 6:4 (Clark/Dave). The partners withdraw an amount equal to their salary each year. On January 1,2017, Clark's capital balance...
Batman, Spiderman and Mr. Freeze are partners in the accounting firm of BSF-CPA They share profits and losses as follows: Spiderman Batman Mr. Freeze Partners receive 12% interest on their beginning of the year capital balance Mr. Freeze receives a $30,000 salary while Batman and Spiderman each receive $40,000 salaries All 3 take their salary in cash. In addition, Mr. Freeze takes $1000 out of the partnership each month to pay for his tanning-salon membership. At the beginning of 2017...
Allocation of Income for Partners. Determine each partner's share and make the appropriate general journal entry to close the Income Summary account to the capital accounts. Khalid, Dina, and James are partners with beginning-year capital balances of $400,000, $320,000, and $160,000, respectively. The partners agreed to share income and loss as follows: Salary of $30,000 to Khalid, $50,000 to Dina, and $55,000 to James. An interest allowance of 10% on beginning-of-the year capital balances. Any remaining balance is to be...
Gray, Stone, and Lawson open an accounting practice on January
1, 2016, in San Diego, California, to be operated as a partnership.
Gray and Stone will serve as the senior partners because of their
years of experience. To establish the business, Gray, Stone, and
Lawson contribute cash and other properties valued at $420,000,
$390,000, and $195,000, respectively. An articles of partnership
agreement is drawn up. It has the following stipulations:
Personal drawings are allowed annually up to an amount equal...
Early in 2018, the partners of Fitz, Leu and Wen sought your assistance to help with their partnership accounting. They began the new business in 2017 but did not hire a professional accountant to help them. Fitz and Leu began the partnership contributing $170,000 and $120,000 in cash, respectively. Fitz was to work occasionally at the business, and Leu was to be employed full-time. They decided that year-end profits and losses should be assigned as follows: 1. Each partner was...
Gray, Stone, and Lawson open an accounting practice on January
1, 2016, in San Diego, California, to be operated as a partnership.
Gray and Stone will serve as the senior partners because of their
years of experience. To establish the business, Gray, Stone, and
Lawson contribute cash and other properties valued at $280,000,
$250,000, and $125,000, respectively. An articles of partnership
agreement is drawn up. It has the following stipulations:
Personal drawings are allowed annually up to an amount equal...
Problem 2 Land M are partners in Elem Co. each contributing $50,000 towards their capital. On March 31, 2018 the business reported the following: Sales turnover of $900,000 Cost of goods sold $400,000 Operating Expenses $200,000 1. Land M are to be paid a salary of $3,000 and $2,000 salary per month respectively. 2. Both the partners are to receive interest on capital @6% per annum. 3. Mis to receive a bonus of $30,000 if sales exceeded $600,000 in any...