Homework Answers
| Case-1 | ||||||
| Statement showing allocation of Income | ||||||
| Niensted | Bolen | Sayler | Total | |||
| Net Income for the year | 28,300 | |||||
| Share of Profits in 6:3:1 | 16980 | 8490 | 2830 | |||
| Case-2 | ||||||
| Statement showing allocation of income | ||||||
| Niensted | Bolen | Sayler | Total | |||
| Net Income for the year | 39,600 | |||||
| Salary allowance | 15200 | 10300 | -25,500 | |||
| Remaining income | 14,100 | |||||
| Share of Income equally | 4700 | 4700 | 4700 | -14,100 | ||
| Remaining income | 0 | |||||
| Total share of income | 19900 | 15000 | 4,700 | 39,600 | ||
| Case-3 | ||||||
| Statement showing allocation of income | ||||||
| Niensted | Bolen | Sayler | Total | |||
| Net Income for the year | 18,900 | |||||
| Salary allowance | 14250 | -14,250 | ||||
| Remaining income | 4,650 | |||||
| Interest allowance @10% | 4,900 | 3,400 | 2,350 | -10,650 | ||
| Remaining loss | -6,000 | |||||
| Share of loss equally | -2000 | -2000 | -2000 | 6,000 | ||
| Remaining income | 0 | |||||
| Total share of income | 17150 | 1400 | 350 | 18,900 | ||
| Req a. | ||||||
| Journal entries | ||||||
| S.no. | Accounts title and explanations | Debit $ | Credit $ | |||
| Case-1 | ||||||
| Income Summary | 28300 | |||||
| Niensted Capital | 16980 | |||||
| Bolen Capital | 8490 | |||||
| Sayler Capital | 2830 | |||||
| (for income allocated to partners) | ||||||
| Case-2 | ||||||
| Income Summary | 39600 | |||||
| Niensted Capital | 19900 | |||||
| Bolen Capital | 15000 | |||||
| Sayler Capital | 4700 | |||||
| (for income allocated to partners) | ||||||
| Case-3 | ||||||
| Income Summary | 18900 | |||||
| Niensted Capital | 17150 | |||||
| Bolen Capital | 1400 | |||||
| Sayler Capital | 350 | |||||
| (for income allocated to partners) | ||||||
| Req b. | ||||||
| Statement showing allocation of income | ||||||
| Niensted | Bolen | Sayler | Total | |||
| Net Income for the year | 18,900 | |||||
| Salary allowance | 14250 | -14,250 | ||||
| Remaining income | 4,650 | |||||
| Interest allowance @10% | 4,900 | 3,400 | 2,350 | -10,650 | ||
| Remaining loss | -6,000 | |||||
| Share of loss equally | -2000 | -2000 | -2000 | 6,000 | ||
| Remaining income | 0 | |||||
| Total share of income | 17150 | 1400 | 350 | 18,900 | ||
| Req c. | ||||||
| Statement of Partners' capital | ||||||
| Niensted | Bolen | Sayler | Total | |||
| Beginning balance of capital | 49,000 | 34,000 | 23,500 | 1,06,500 | ||
| Add: Share of Net Income | 17,150 | 1,400 | 350 | 18,900 | ||
| Sub total | 66,150 | 35,400 | 23,850 | 1,25,400 | ||
| Less; Drawings |
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Journalize the entry to record the division
of net income for the year 2018 under each of the following
independent assumptions
(a)
(1) Net income is $28,300. Income is shared 6 : 3 : 1.
(2) Net income is $39,600. Niensted and Bolen are given salary
allowances of $15,200 and
$10,300, respectively. The remainder is shared equally.
(3) Net income is $18,900. Each partner is allowed interest of
10% on beginning capital
balances. Niensted is given a $14,250 salary allowance....
Problem 12-02A a-c (Part Level Submission) (Video) At the end of its first year of operations on December 31, 2020, Cullumber Company's accounts show the following. Partner Art Niensted Greg Bolen Krista Sayler Drawings $23,300 13,800 10,900 Capital $41,500 33,000 27,500 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners' capital accounts. To record the division of net income for the year 2020 under each...
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At the end of its first year of operations on December 31,
2020, Sandhill Company’s accounts show the following.
Partner
Drawings
Capital
Art Niensted
$23,100
$45,000
Greg Bolen
14,200
38,500
Krista Sayler
10,500
28,500
The capital balance represents each partner’s initial capital
investment. Therefore, net income or net loss for 2020 has not been
closed to the partners’ capital accounts.
To record the division of net income for the year 2020 under each
of the following independent assumptions.
1.
Net...
P12.2A Financial Statement (LO 2) At the end of its first year of operations on December 31, 2020, NBS Company's accounts show the following. Journalize divisions of net income and prepare a partners' capital statement. The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners' capital accounts. Instructions a. Journalize the entry to record the division of net income for the year 2020 under each of the following independent assumptions. 1....
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