Exercise 15-3 Jones, Silva, and Thompson form a partnership and agree to allocate income equally after...

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Exercise 15-3 Jones, Silva, and Thompson form a partnership and agree to allocate income equally after...

Exercise 15-3

Jones, Silva, and Thompson form a partnership and agree to allocate income equally after recognition of 10% interest on beginning capital balances and monthly salary allowances of $2,010 to Jones and $1,480 to Thompson. Capital balances on January 1 were as follows:

Jones		$39,700
Silva		25,000
Thompson		29,900

Calculate the net income (loss) allocation to each partner under each of the following independent situations.

1.		Net income for the year is $99,040.
2.		Net income for the year is $38,260.
3.		Net loss for the year is $15,050.

(Enter loss allocation using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

		Jones	Silva	Thompson
1.	Income (Loss) allocation	$	$	$
2.	Income (Loss) allocation	$	$	$
3.	Income (Loss) allocation	$	$	$

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Answer 1

Answer #1

Answer:-

		Jones	Silva	Thompson
1	Income (Loss) allocation	$30,526.67	$30,526.67	$30,526.67
2	Income (Loss) allocation	$8,067.50	$8,067.50	$8,067.50
3	Income (Loss) allocation	$2,142.50	$2,142.50	$2,142.50

Workings

A B C L P Q R 11 D E F Salary Net income after Interest on allowanc interest and salary capital (C-D-E) $3,970 $3,490 $91,580

Formulas

B C D | Ε F P Q R 12 a. Net income 99040 38260 15050 Interest on capital 3970 2500 2990 13 b. Net income after interest and s

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Answer 2

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Exercise 15-3 Jones, Silva, and Thompson form a partnership and agree to allocate income equally after...

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