Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020...
5) Copote and Parsons formed a partnership with capital contributions of $60,000 and $90,000 respectively. Their partnership agreement called for Copote to receive a $12,000 annual salary allowance, and each partner to receive a share of profit equal to a 10% return on capital investments. The remaining income or loss is to be divided 40% to Copote and 60% to Parsons. If the profit for the year is $84,000, what are Copote's and Parson's respective shares? 6) Gillian and Emily...
David, Chris and John formed a partnership on July 31, 2019. They decided to share profits equally, but inserted a clause in the partnership agreement where any losses would be allocated in the ratio of 4:3:3, respectively. For the year ended December 31, 2019, the firm earned a net income of $46,000. However, for the year ended December 31, 2020, the firm incurred a loss of $55,000. Assuming that John had an initial capital contribution of $39,000 and made no...
Chia, Kiat and Poh were in partnership sharing profits and losses equally. On 31 December 1985, the credit balances on the partners' capital accounts (current accounts were not kept) were Chia $160 000, Kiat $120 000 and Poh $60 000. On 1 January 1986 Kiat retired from the partnership. To ascertain the total amount due to him, goodwill was valued at $30 000 and the fixed assets were valued at $18 000 more than the amount at which they appeared...
Questiion 3 Sima and Shuly are in partnership trading as Shuma Trading, The following information relates to the partnership: Extract of balances as at 31 May 2018: Capital: Sima (1 June 2017) Capital: Shuly (1 June 2017) Current Account: Sima Current Account Shuly (Cr) Drawings: Sima 320 000 280 000 85 000 74 000 15 000 Continued on the next page 23 FAC1601/101/3/2019 Drawings: Shuly Bank (Dr) Land and Vehicles at cost (1 June 2017) Equipment at cost (1 June...
1. The limited liability company may elect to be manager-managed rather than member-managed, which means that only authorized members may legally bind the corporation. a. True b. False 2. A corporation is a separate entity for accounting purposes but not for legal purposes. a. True b. False — 3. When compared to a corporation, one of the major disadvantages of the partnership is its limited life. a. True b. False _ 4. Each partner may withdraw the assets he or...
MERCHANDISING ACOUNTING Joe Blink an his brother Paul opened Blink's Partnership Company Merchandising business on July 1. The company applies the perpetual inventory system. July 1 Joe and Paul each invest $70,000 cash in a new partnership Purchased merchandise form Boden Company for $8,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 Purchased used truck from Carter for $8,000, paying $3,000 cash and the balance On account. Sold merchandise that cost $3,500 to Rivera's Co....
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...