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Partners Conner, Tuitt, and Heyward share profits and losses in a 3:4:5 ratio, respectively. Their average capital balances for the quarter year were $50,000, $70,000, and $80,000, respectively.
Conner and Heyward each receive a “salary” of $8,000 each quarter due to their years of experience
in the field. All three partners receive 5% interest on their average capital balance. The net income
for this quarter was $25,100.
Prepare a schedule that shows the distribution of the net income to the partners.
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Partners Conner, Tuitt, and Heyward share profits and losses in a 3:4:5 ratio, respectively. Their average capital...
PROBLEM 18 (18 pts.) Partners Conner, Tuitt, and Heyward share profits and losses in a 3:4:5 ratio, respectively. Their average capital balances for the quarter year were $50,000, $70,000, and $80,000, respectively. Conner and Heyward each receive a “salary” of $8,000 each quarter due to their years of experience in the field. All three partners receive 5% interest on their average capital balance. The net income for this quarter was $25,100. Prepare a schedule that shows the distribution of the...
2. Amold, Beverly, and Carolyn are partners who share profits and losses 40:40:20. respectively, after Beverly, who manages the partnership, receives a bonus of 10 percent of income, net of the bonus. Partnership income for the year is $198.000 Required: Prepare a schedule to allocate partnership income to Arnold, Beverly, and Carolyn. 3. The partnershin armour 3. The partnership agreement of Dan, Hen, and Bai provides that profits are to be divided as follows: • Bai receives a salary of...
On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to liquidate their partnership. The trial balance at this date follows: Debit Credit $ 41,000 Cash Accounts receivable 112,000 98,000 235,000 76,000 Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital $ 97,000 66,000 189,000 113,000 97,000 $ 562,000 $ 562,000 Totals The partners plan a program of piecemeal conversion...
PROBLEM 3 Sleepy, Grumpy and Happy are partners. Grumpy received ½ of profits and losses with Happy and Sleepy each receiving 1/4. On 1/1/2014 they have the following capital balances Grumpy $100,000 Happy $50,000 Sleepy $50,000 On 1/2/2014 Grumpy sells ½ of his share of the partnership to Dopey for $80,000. Now all 4 partners will by ¼ owners. REQUIRED: Using the Goodwill method, show the capital accounts of the 4 partners on 1/2/2014. Using the bonus method, show the...
Partners Eli and Alex have agreed to share profits and losses in an 80:20 ratio respectively, after Eli is allowed a salary allowance of $70600 and Alex is allowed a salary allowance of $35100. If the partnership had net income of $70300 for 2020, Alex’s share of the income would be
Clark and Dave are partners in the Company. following manner: They share income and losses in the (1) Each partner is to receive a salary of $75,000; (2) Each partner is to receive 5% interest on beginning capital balances; and (3) Any remainder profit/loss is to be split in a ratio of 6:4 (Clark/Dave). The partners withdraw an amount equal to their salary each year. On January 1, 2017, Clark's capital balance was $1,000,000 and Dave's was $900,000. Assuming each...
Jimmy, Johnny, and Joey are partners in the 3J Company sharing profits and losses equally. Joey has decided to leave the partnership. After all accounts have been updated, the capital balances of the partners are currently $90,000, $120,000, and $70,000, respectively. Refer to Table 12 -8. Assume Joey takes $50,000 in cash and a promissory note for $20,000. The entry to record his withdrawal includes a: O A. O B. ° C. credit to Joey, Capital for $50,000 debit to...
Partners Ute, Aggie, and Cougar share profits and losses in the ratio of 5:3:2, respectively. The partners voted to liquidate the partnership when its assets, liabilities, and capital were as follows: Cash $ 15,000 Liabilities from Outside Creditors $55,000 Loan from Aggie 15,000 Non-cash assets 95,000 Capital, Ute 22,000 Capital, Aggie 13,000 __________ Capital, Cougar 5,000 Total Assets $110,000 Total Liabilities & Equity $110,000 All the noncash assets of $95,000 were sold for $60,000. Cougar was personally insolvent and unable...
Lori and Peter enter into a partnership and decide to share profits and losses as follows: 1. The first allocation is a salary allowance with Lori receiving $12,000 and Peter receiving $14,000. 2. The second allocation is 20% of the partners' capital balances at year end. On December 31, 2019, the capital balances for Lori and Peter are $80,000 and $16,000, respectively. 3. Any remaining profit or loss is allocated equally. For the year ending December 31, 2019, the partnership...
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...