1) | ||||
McGill | Smyth | Total | ||
Salary allowance | $ 16,000 | $ 13,000 | $ 29,000 | |
Interest allowance |
$
5,700 ( $ 57,000 x 10% ) |
$
4,700 ( $ 47,000 x 10% ) |
$ 10,400 | |
Total salaries and interest | $ 21,700 | $ 17,700 | $ 39,400 | |
Remaining income / deficiency |
$
26,760 ( $ 44,600 x 60% ) |
$
17,840 ( $ 44,600 x 40% ) |
$
44,600 ( $ 84,000 (-) $ 39,400 ) |
|
Total division of net income | $ 48,460 | $ 35,540 | $ 84,000 | |
2) | ||||
McGill | Smyth | Total | ||
Salary allowance | $ 16,000 | $ 13,000 | $ 29,000 | |
Interest allowance |
$
5,700 ( $ 57,000 x 10% ) |
$
4,700 ( $ 47,000 x 10% ) |
$ 10,400 | |
Total salaries and interest | $ 21,700 | $ 17,700 | $ 39,400 | |
Remaining income / deficiency |
($
5,640) ( $ 9,400 x 60% ) |
($
3,760) ( $ 9,400 x 40% ) |
($
9,400) ( $ 30,000 (-) $ 39,400 ) |
|
Total division of net income | $ 16,060 | $ 13,940 | $ 30,000 | |
No | Account Titles and Explanation | Debit | Credit | |
1 | Income Summary | $ 84,000 | ||
McGill Capital | $ 48,460 | |||
Smyth Capital | $ 35,540 | |||
(To record the allocation of Net Income ) | ||||
1 | Income Summary | $ 30,000 | ||
McGill Capital | $ 16,060 | |||
Smyth Capital | $ 13,940 | |||
(To record the allocation of Net Income ) | ||||
Exercise 12-4 McGill and Smyth have capital balances on January 1 of $57,000 and $47,000, respectively....
Exercise 12-4 McGill and Smyth have capital balances on January 1 of $57,000 and $47,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $84,000. (If an amount reduces the account balance then...
Exercise 12-4 McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $50,000. (If an amount reduces the account balance then...
*Exercise 12-04 a-b (Video) McGill and Smyth have capital balances on January 1 of $41,000 and $34,000, rspectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGill and $17,000 for Smyth, (2) Interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Prepare a schedule showing the distribution of net income, assuming net income is $85,000. (If an amount reduces thcunt balance then...
McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $20,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement...
Is (Video) McGill and Smyth have capital balances on January 1 of $53,000 and $34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $17,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $66,000. (If an amount reduces the account balance then...
McGill and Smyth have capital balances on January 1 of $42,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $23,000 for McGill and $14,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $84,000. (If an amount reduces the account balance then enter with...
Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $54,000 and $37,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 for McGill and $12,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (a) Your answer is partially correct. Try again. (1) Prepare a schedule showing the distribution of net income,...
everything is correct except red boxes Exercise 12-4 McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income- Sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Your answer is partially correct. Try again. (1) Prepare a schedule showing the distribution of net...
McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $20,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. Please fill out the incorrect chart. McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides...
Not sure how to finish the questions. Exercise 12-04 a-b (Video) McGill and Smyth have capital balances on January 1 of $48,000 and $30,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $18,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is...