Day and Night formed an accounting partnership in 2014. Capital transactions for Day and Night during...
Day and Night formed an accounting partnership in 2014. Capital transactions for Day and Night during 2014 are as follows:
Date Transaction Amount
Day
1/1 Beginning balance $75,000
4/1 Withdrawal 19,200
6/1 Investment 37,800
11/1 Investment 19,200
Night 1/1
Beginning balance $37,200
7/1 Investment 18,600
10/1 Withdrawal 9,600
Partnership net income for the year ended December 31, 2014; is $69,000 before considering salaries or interest. Determine the amount of profit that is to be allocated to Day and Night in accordance with each of the following independent profit-sharing agreements:
3. Net income is to be allocated in the ratio of ending capital balances.
4. Net income is to be allocated in the ratio of average capital balances.
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Day and Night formed an accounting partnership in 2014. Capital
transactions for Day and Night during...
Day and Night formed an accounting partnership in 2014. Capital transactions for Day and Night during...
Day and Night formed an accounting partnership in 2014. Capital transactions for Day and Night during 2014 are as follows: Transaction Date Amount Day 1/1 Beginning balance $75,000 19,200 37,800 Withdrawal 4/1 6/1 Investment 11/1 Investment 19,200 Night 1/1 Beginning balance $37,800 7/1 Investment 19,200 10/1 Withdrawal 9,000 Partnership net income for the year ended December 31, 2014; is $69,000 before considering salaries or interest. Determine the amount of profit that is to be allocated to Day and Night in...
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