ZuoTi.Pro
Question

The net income agreement for Crosby and stills states net income and net loss shall be...

The net income agreement for Crosby and stills states net income and net loss shall be divided in a ratio of beginning capital balances. The net loss for the current year is $50,000. On January 1 of the current year the capital balances were as follows: Crosby, $55,000 and Stills, $65000. During the current year Crosby withdrew $40,000 and stills withdrew $25000. Compute the capital balances as of December 31 of the current year.
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Crossby Still
opening capital balances 55,000 65,000
net loss in ratio of 55:65 -22917 -27083
withdrawals -40,000 -25,000
Ending capital balances -7,917 12,917 answer
0 0
Add a comment
Know the answer?
Add Answer to:
The net income agreement for Crosby and stills states net income and net loss shall be...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Eric Duffy and Johnnie Gladwin operate a partnership. The partnership agreement states that the income and...

    Eric Duffy and Johnnie Gladwin operate a partnership. The partnership agreement states that the income and loss will be shared based on the ratio of their beginning capital balances. At the beginning of the year, Duffy had a capital balance of $80,000 and Gladwin had a capital balance of $20,000. The partnership's income statement reported net income of $90,000 for the year ending December 31. Prepare the December 31 journal entry that would be required to close the Income Summary...

  • Hope & Crosby Co. reports net income of $45,000. The partnership agreement provides for annual salaries...

    Hope & Crosby Co. reports net income of $45,000. The partnership agreement provides for annual salaries of $29,000 for Hope and $20,000 for Crosby and interest allowances of $6,000 to Hope and $5,000 to Crosby. Any remaining income or loss is to be shared 70% by Hope and 30% by Crosby. Instructions: Part 1: Compute the amount of net income distributed to each partner. HINT: Set up a table to show your work. Part 2: Prepare the journal entry to...

  • Cheatem, Fleecem and Robbem are partners in a law fim. The partnership agreement states they will...

    Cheatem, Fleecem and Robbem are partners in a law fim. The partnership agreement states they will be allocated salaries of $30,000, $50,000 and $70,000 respectively. In addition, each will be paid interest of 10% on their beginning capital balances (listed below). Any excess or deficit will be shared at a ratio of 2:1:1. Beginning capital balances: $ Cheatem Fleecem Robbem 250,000 200,000 150,000 Instructions: a. b. Worksheet provided, calculate each partner's share of profits assuming that net income is $370,000...

  • Section 5: Profit and Loss Allocations The net profits of the partnership shall be apportioned equally...

    Section 5: Profit and Loss Allocations The net profits of the partnership shall be apportioned equally between the partners and the net losses shall be borne equally by them, with each partner receiving fifty percent (50%) of the net profits of the partnership, and fifty percent (50%) of the net losses. A separate income account shall be maintained for each partner. Partnership profits and losses shall be charged or credited to the separate income account of each partner. If a...

  • Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year...

    Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20X2 Sales Cost of goods sold 2,200,000 1,300,000 900,000 420,000 150,000 330,000 90,000 240,000 80,000 160,000 10,000 150,000 120,000 1.25 Gross profit Selling and administrative expense Depreciation expense Operating income Interest expense Earnings before taxes Taxes Earnings after taxes Preferred stock dividends Earnings available to common stockholders Shares outstanding Earnings per share Statement of Retained Earnings For the Year Ended December...

  • Larry Curly, and Moe form a partnership on 01/01/2019. Terms of the written partnership agreement state that net in...

    Larry Curly, and Moe form a partnership on 01/01/2019. Terms of the written partnership agreement state that net income/loss is to be split in the ratio of 5:3:2, respectively, after salaries and 10% interest on beginnig-of-the-year capital balances are considered. On 01/01/2019, capital contributions by the three are as follows: Larry -- $50,000, Curly -- $70,000, Moe -- $90,000. Salaries paid during 2019 are as follows: Larry -- $40,000, Curly -- $45,000, Moe -- $60,000. Net income for the partnership...

  • The partnership agreement of Walt, Henry and Victoria provides that profits and losses are to be...

    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...

  • The Scott Stewart and Rick Smith Partnership earned a net income of $90,000 for the current...

    The Scott Stewart and Rick Smith Partnership earned a net income of $90,000 for the current year. Beginning capital balances were$70,000 for Stewart and $140,000 for Smith. Prepare the closing entries to transfer net income to the partners' capital accounts based on the following independent net income agreements.a) No mention of net income agreement.b) Interest on beginning capital balances of 12%, balance divided in a ratio of 3:2, respectively.c) Interest on beginning capital balances of 10%, secondly $45,000 to Stewart...

  • Allocation of Income for Partners. Determine each partner's share and make the appropriate general journal entry...

    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...

  • Partners a and b have a profit and loss agreement with the following provisions salaries of...

    Partners a and b have a profit and loss agreement with the following provisions salaries of 20,000 and 25,000 and a anb respectively a bonus of 10% net income after bonuses and interest 20% on the average capital balances of 40,000 and 50,000 for a and b respectively Any remainder spilt equally if the partnership had net income of 88,000 how much allocated to partner a partner a

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT