The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence:
The average capital investments for 2018 were as follows:
Jones | $ | 135,000 |
King | 270,000 | |
Lane | 405,000 | |
How much of the $60,000 partnership profit for 2018 should be assigned to each partner?
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The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's...
The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: • Jones, the managing partner, receives a bonus equal to 25 percent of the business’s profit. • Each partner receives 12 percent interest on average capital investment. • Any residual profit or loss is divided equally. The average capital investments for 2015 were as follows: Jones $ 200,000 King 400,000 Lane 600,000 How...
Problem 9-21 (LO 9-6) The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit Each partner receives 18 percent interest on average capital investment Any residual profit or loss is divided equally. The average capital investments for 2018 were as follows: $ 250,000 350,000 525,e0e Jones King Lane How much of the...
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...
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...
9 Which of the following statements is NOT true with regards to the division of proft that aliows interest allowance, salary alowance, and bonus? A Interest allowance is allowed regardiess of the result of operation B. Regardiess of the date when the partnership started ts operation, the amount of interest computed for the whole year must be allowed to the partners C. The amount of salary alowance will depend upon the partner's expertise and time devoted to the partnership D....
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
Gray, Stone, and Lawson open an accounting practice on January 1, 2016, in San Diego, California, to be operated as a partnership. Gray and Stone will serve as the senior partners because of their years of experience. To establish the business, Gray, Stone, and Lawson contribute cash and other properties valued at $270,000, $240,000, and $120,000, respectively. An articles of partnership agreement is drawn up. It has the following stipulations: Personal drawings are allowed annually up to an amount equal...
Gray, Stone, and Lawson open an accounting practice on January
1, 2016, in San Diego, California, to be operated as a partnership.
Gray and Stone will serve as the senior partners because of their
years of experience. To establish the business, Gray, Stone, and
Lawson contribute cash and other properties valued at $420,000,
$390,000, and $195,000, respectively. An articles of partnership
agreement is drawn up. It has the following stipulations:
Personal drawings are allowed annually up to an amount equal...
17. A deficient partner A s assumed to be always insolvent B who is solvent and has a loan to the st a tes the right of C should inmediately withdraw from the partnership D may invest additional cash The partners did not agree is to how t h e guided then ch should be divided among partners A based on original capital to B arbitrary ratio C equally D. based on ending capital ratio 19. The total partners' equity...
The partnership agreement of L, M, N and O was formed on January 2, 2020. The original cash investments were as follows: L, Capital $ 64,000 M, Capital 116,000 N. Capital 150,000 O, Capital 200,000 According to the partnership contract, the partners were to be remunerated as follows: Fixed Amounts of $20,000 for M and $15,000 for O. Interest at 8% on the average capital account balances during the year. Remainder divided as follows L -...