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
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Partners a and b have a profit and loss agreement with the
following provisions salaries of...
Adam, Bella, and Chris operate a partnership with a complex profit and loss sharing agreement. The...
Adam, Bella, and Chris operate a partnership with a complex profit and loss sharing agreement. The average capital balance for Adam, Bella and Chris on December 31, 2018 is $120,000, $270,000, and $340,000, respectively. If partnership net income is above $160,000, after the salary allocations are considered (but before the interest allocations are considered), Chris will receive a bonus of 10% of the income (before deducting salary and interest, but after deducting the bonus). A 6% interest allocation is provided...
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...
Reese and Cravens are partners. Their partnership agreement provides that, in dividing profits, each is to...
Reese and Cravens are partners. Their partnership agreement provides that, in dividing profits, each is to be allocated interest at 10 percent of her beginning capital balance. The balance of net income or loss after the interest allowances is to be split in the ratio of 70:30 to Reese and Cravens, respectively. The beginning capital balances were Reese, $260,000, and Cravens, $68,000. Net income for the year was $125,000. Compute the amount of net income to be allocated to each...
Larry, Curly, and Moe form a partnership on 01/01/2019. Terms of the written partnership agreement state...
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 for 2019 is $125,000. At 12/31/2019,...
Freely and Hamwey form a partnership, contributing $46,000 and $69,000, respectively. Determine their shares of net...
Freely and Hamwey form a partnership, contributing $46,000 and $69,000, respectively. Determine their shares of net income or net loss for each of the following independent situations: (Use a minus sign or parentheses when entering losses.) a. Net loss is $70,000 and the partners have no written partnership agreement. b. Net income is $90,000 and the partnership agreement states that the partners share profits and losses on the basis of their capital balances. c. Net income is $160,000. The first...
Exercise 15-5 On January 1, 2016, Tony and Jon formed T&J Personal Financial Planning with capital...
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...
Rob Frasier and Jack Hart form a partnership contributing 587.500 and $22.500, respectively. Determine their shares...
Rob Frasier and Jack Hart form a partnership contributing 587.500 and $22.500, respectively. Determine their shares of niet income or net loss for each of the following independent situations: Netloss is $120,000 and the partners have no written partnership agreement Net income is $50,000 and the partnership agreement states that the partners share protes and losses on the basis of their capital balances Net income is $160.000. The first $96,000 is shared on the basis of capital balance. The next...
68. Which of the following statements is false? Partners may contribute additional capital to the partnership...
68. Which of the following statements is false? Partners may contribute additional capital to the partnership in the form of cash and other assets Withdrawals of cash by the partners are called "drawings." The partnership income statement includes revenues and expenses but not salary paid to partners A) B) C) D) All of the above are true 69. Which of the following statements about the allocation of partnership profit or loss is false? A) Partnership agreements sometimes allow for a...
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...
Dividing at Leigh Meadows and Byron Leef formed a partnership in which the partnership agreement provided...
Dividing at Leigh Meadows and Byron Leef formed a partnership in which the partnership agreement provided for salary allowances of $40,000 and $35,000, respectively. Determine the division of a $20,000 net loss for the current year, assuming remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies. Leigh Meadows Byron Leef Total Salary Allowance $ 40,000 $ 35,000 $ 75,000 Remainder $ -37,500 X $ -37,500 Net Loss
Adam, Bella, and Chris operate a partnership with a complex profit and loss sharing agreement. The average capital balance for Adam, Bella and Chris on December 31, 2018 is $120,000, $270,000, and $340,000, respectively. If partnership net income is above $160,000, after the salary allocations are considered (but before the interest allocations are considered), Chris will receive a bonus of 10% of the income (before deducting salary and interest, but after deducting the bonus). A 6% interest allocation is provided...
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 for 2019 is $125,000. At 12/31/2019,...
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...
Rob Frasier and Jack Hart form a partnership contributing 587.500 and $22.500, respectively. Determine their shares of niet income or net loss for each of the following independent situations: Netloss is $120,000 and the partners have no written partnership agreement Net income is $50,000 and the partnership agreement states that the partners share protes and losses on the basis of their capital balances Net income is $160.000. The first $96,000 is shared on the basis of capital balance. The next...
68. Which of the following statements is false? Partners may contribute additional capital to the partnership in the form of cash and other assets Withdrawals of cash by the partners are called "drawings." The partnership income statement includes revenues and expenses but not salary paid to partners A) B) C) D) All of the above are true 69. Which of the following statements about the allocation of partnership profit or loss is false? A) Partnership agreements sometimes allow for a...
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...
Dividing at Leigh Meadows and Byron Leef formed a partnership in which the partnership agreement provided for salary allowances of $40,000 and $35,000, respectively. Determine the division of a $20,000 net loss for the current year, assuming remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies. Leigh Meadows Byron Leef Total Salary Allowance $ 40,000 $ 35,000 $ 75,000 Remainder $ -37,500 X $ -37,500 Net Loss
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