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Current Attempt in Progress The Ivanhoe Partnership reported profit of $66,000 for the year ended February 29, 2024. Salary allowances are $49,500 for H. Robinson and $27,500 for S. Lewi. Interest allowances of 5% are calculated on each partner's opening capital account balance. Capital account balances at March 1, 2023, were as follows: H. Robinson $79,000 (Cr.) and S. Lewi $52,000 (Cr.). Any remainder is shared equally, Calculate the division of profit to each partner. Profit allocated to partners H. Robinson S. Lewi

X derived the following income in 2020: Business income of P400,000 Compensation income of P200,000 Interest income from 5/6 lending to clients: P150,000 Interest income from bank deposits in the amount of P25,000. Royalty income for the sale of books where he is the author: P120,000. Capital gain on sale of personal car in the amount of P20,000. Capital gain on the sale of stocks directly to buyer: P30,000. Ordinary gain on sale of old office furniture in the amount of P10,000. Dividend income from stocks of San Miguel Corporation: P60,000. Proceeds received from the life insurance of his deceased father: P1,000,000   what is the total income of X which is subject to final tax?

X derived the following income in 2020: Business income of P400,000 Compensation income of P200,000 Interest income from 5/6 lending to clients: P150,000 Interest income from bank deposits in the amount of P25,000. Royalty income for the sale of books where he is the author: P120,000. Capital gain on sale of personal car in the amount of P20,000. Capital gain on the sale of stocks directly to buyer: P30,000. Ordinary gain on sale of old office furniture in the amount of P10,000. Dividend income from stocks of San Miguel Corporation: P60,000. Proceeds received from the life insurance of his deceased father: P1,000,000   what is the total income of X which is subject to regular tax?

Problem #3 SCORE: PROFESSOR Rules for the Distribution of Profits or Losses Elisa Diar and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2019 profit of P420,000 under each of the following independent assumptions:   E. Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of P50,000 and P70,000, respectively, and the balance to be divided equally e. Allowance of interest at the rate of 8% on inal investments, salary allowances P50,000 and P70,000, respectively, and the remainder to be divided equally

PROBLEM: ZOE and ZIA PARTNERSHIP reported income for the year 2021 was P250,000.00 and the partners divide their profit 70:30 respectively. In January 2022, they changed the ratio to 50:50. During 2022, the following errors were discovered for the 2021 net income. 1. Depreciation was overstated by 30,000.00. 2. Prepaid rent for 20,000 was ommitted. 2. Accrued interest payable was ommitted worth 25,000.00 Required: 1. Compute the correct net income for 2021. 2. Compute the correct share of each partner in the net income for 2021. 3. Compute the difference of the share actually received and should have received by each partner in 2021. 4. Prepare the journal entry to record the adjustment of the partner's capital account on December 31, 2022.

Question 1 Mr. Goodwill, a sole trader, presents you with the following information to file his income tax returns which became due and payable on March 15, 2022. Accounting Loss of Jamaican Two Hundred and Sixty Thousand Dollars (J$260,000) after charging the following: i. Depreciation ii. III. iv. V. $1,370,000 $50,000 monthly $1,500,000 Other relevant information presented to you by Mr. Goodwill are: The building from which he operates is a new, non-industrial one constructed of wood, purchased in 2021 for $800,000. vi. Rent relating to rental of business premises Drawings Salary for Mr. Goodwill of $2,000,000 per annum- P24 prepared by the accountant reflects that PAYE of $109,976 has been paid over to the Collector of Taxes on his behalf. (Note: Assume no other taxes have been paid for him) He has a trade vehicle, purchased in 2015 for JS1,500,000 and a private vehicle, purchased in 2021 for J$1,000,000. Both vehicles qualify for the maximum available capital allowance as…

QUESTION 28 For 2020, Forway Corporation, an Accrual Basis calendar year corporation, had Net Income Per Books of $111,550 and the following transactions Premiums on Life Insurance Policy on its key employees -$6,000, Excess Capital Losses - $12.000, Excess Tax Depreciation - $9,000, Life Insurance Proceeds on life of its key employees - $65.000: Rent Income received in 2020 - $30,000 (S20,000 is prepaid and relates to 2020): Tax-Exempt Interest Income - $8,000, Federal Income Tax liability for 2020 - $15,450; Prepaid Rent received and properly taxed in 2019 (but not eamed for Financial Accounting purposes until 2020) - $5.000; Interest Expense on Tax-Exempt Interest Income item - $2.000. The total amount "added" to Net Income Per Books for Forrway Corporation in its Schedule M-1 Reconciliation for the tax year of 2020 is OS 80.000 O$ 55,450 OS 07.000 $167.000

Problem #3 Rules for the Distribution of Profits or Losses Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2019 profit of P420,000 under each of the following independent assumptions:

Exercise 3: Retirement of a Partner Hector is retiring from the partnership with Fred and Gabby as of July 1, 2019 and is paid P16,000. Their capital balances as of January 1, 2019 and shares in profits are as follows: Capital Balance P/L Ratio Fred 30% P20,000 30,000 Gabby 40 Hector 10,000 30 Hector's drawing for the first half of 2019 amounted to P1,500 and net income for the first half of 2019 amounted to P15,000. Make the entry or entries incidental to the retirement of Hector under each of the following assumptions: a. The asset revaluation of the partnership is recorded b. The additional payment to the retiree is a bonus from the remaining partners.

Capital 1/1/2020 Profit/loss% Withdrawals in 2020 Alice 39285 30% 15,000 Bob 26528 25% 45,000 Carol 41594 45% 30,000 For 2020, Bob earned a salary of $42117. Each partner receives interest of 8% of the beginning capital balance for the year. Total income of the partnership in 2020 was $120266. How much income should be attributed to Alice in 2020? What is Bob's capital balance at 12/31/2020?

Sam had the following sources of income for 2022 Dividends $1,500 Salary $70, 000 Interest $2,000 Net Rental income $5,000 bonus $10,000 what is sam's earned income for the year? $82,000 $ 87,000 $86,000 $85,000 $88, 500

Exercise3: Retirement of a Partner  G, H and I are partners whose capital balances as of January 1, 2019 are in the same proportion as their share in profit of 20:30:50. As of January 1, 2019, total partnership assets amount  to P150,000 with the liabilities at P60,000. Their additional investments and withdrawals for 2019 are as follows:      Additional Investments    Drawing       G  P15,000  P9,000      H  18,000  10,000      I  12,000      H retires as of December 1, 2019, G and I agreed to a settlement for his share in equity plus 10% thereof after three months. Pending settlement, the amount due to H shall bear an interest of 12%.  The partnership net income for 2019, prior to the above-mentioned interest, amounts to P32,400.  Instructions:  Determine the amount due to H as of December 31, 2019.  Make the entries incidental to the retirement of H under each of the following assumptions:  The additional consideration is to…

View Policies Current Attempt in Progress Jose and Jack have a partnership agreement which includes the following provisions regarding sharing net income or net loss: 1. A salary allowance of $47.800 to Jose and $35,400 to Jack. An interest allowance of 10% on capital balances at the beginning of the year. The remainder to be divided 70% to Jose and 30% to Jack. 2. 3. The capital balance on January 1, 2020, for Jose and Jack was $105,000 and $131,000, respectively. During 2020, the Jose and Jack Partnership had sales of $507.000, cost of goods sold of $280,000, and operating expenses of $88,500. Prepare an income statement for the Jose and Jack Partnership for the year ended December 31, 2020. As a part of the income statement, include a Division of Net Income to each of the partners JOSE AND JACK PARTNERSHIP Income Statement

Problem #3 SCORE: PROFESSOR Rules for the Distribution of Profits or Losses Elisa Diar and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2019 profit of P420,000 under each of the following independent assumptions: a No agreement concerning division of profit. b. Divided in the ratio of original capital investment. E. Interest at the rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of P50,000 and P70,000, respectively, and the balance to be divided equally e. Allowance of interest at the rate of 8% on inal investments, salary allowances P50,000 and P70,000, respectively, and the remainder to be divided equally

Question 4. Ms. Shaheena incurred following transactions during the tax year 2020. Jan 2020 – Sold 1,000 shares of Sitara Ltd. at listed price of Rs. 150 per share which were acquired in 2015 at cost of Rs. 50 per share. Paid commission to broker amounting to Rs. 5,000. Apr 2020 - Sold a plot for Rs. 20,000,000 which she purchased during Feb 2018 for 14,500,000. Paid commission to dealer Rs. 100,000. May 2020 – Sold 2,000 shares of Surkhaab (Pvt) Ltd. for Rs. 150 each. These shares were gifted by her husband 2 year ago when the fair value of these shares was Rs. 90 each. June 2020 – Sold personal car for Rs 1,800,000 to a family friend, however, market value of the car was at the time sale was 2,100,000. Required: a) Compute capital gain arisen to Ms. Shaheena and income tax thereon. b) Which tax regime shall apply to each of the capital gain.

Problem 1 At the end of the its first year of operations on December 31, 2020, HEART ATTACK Company's accounts show the following: Capital P 48,000 P 30,000 P 25,000 Partner Drawings Mr. Chicharon P 23,000 P 14,000 P 10,000 Mr. Bulalo Mr. L. Kawali The capital balances 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. Net income is P 30,000. Income is shared 6:3:1 2. Net income is P 40,000, Mr. Chicharon and Mr. Bulalo are given salary allowances of P 15,000 and P 10,000, respectively. The remainder is shared equally. 3. Net income is P 19,000. Each partner is allowed interest of 10% on beginning capital balances. Mr. Chicharon is given a P 15,0000 salary allowance. The remainder is shared equally b. Prepare a schedule showing the division…

Homework Activity 1 A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000,          B 1500,          C 1000 Interest on drawings: A 200,             B 150,            C 100 Salary to Partners A 500              B 700             C 600 Commission to Partners A 200              B 300             C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.

Exercise 3-7. Distribution of Net Loss to partners Carmela and Ferdinand formed a partnership on January respectively. The partnership reported a net loss of P80,000. 1, 2023, with initial investments of P300,000 and P500,000, The partnership agreement provides that profit or loss shall be distributed accordingly: • Monthly salary of P10,000 and P5,000 respectively for Carmela and Ferdinand, . 10% interest on partners' original capital. . 20% bonus to Carmela based on net income before interest, and salary. •The remainder is shared in the ratio of 3:2 respectively. Required: Determine the share of Carmela and Ferdinand in the net loss.

Part A Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine decided to enter into a partnership agreement with Mr. Rain, thus the status of the business was changed in 2021. In 2022, the partnership income statement for Shine & Rain was as follows: Income Statement for the year ended 31 December 2022 Revenue Expenses $ $ 11,600,000 Salaries & Wages Employer NIS Contribution Rent and Rates 7,600,000 1,400,000 2.400,000 Interest 500,000 Maintenance 120,000 Depreciation 550,000 Loss on Disposal of Vehicle 80,000 Telephone 235,000 Electricity 255,000 General Expenses 700,000 Donations 85,000 Provision for Bad Debts 80,000 Fines and Penalties 115,000 Drawings 105,000 14,225,000 Net Loss 2,625,000 Notes to the Income Statement 1. $55,000 of the drawings relate to Mrs. Shine and $50,000 to Mr. Rain 2. Gross Salary for Mrs. Shine was $250,000 per month, and $200,000 for Mr. Rain. Both partners worked in the business during the year. 3. The annual…

Prepare the Statement of Changes in Equity of Camray Traders for the year ended 28 February 2021 using template provided   The following must be taken into account:(a) The net profit according to the statement of comprehensive income amounted to R1 400 000 on 28 February2021.(b) The partnership agreement made provision for the following:¦ Interest on capital must be provided at 18% per annum on the balances in the capital accounts.Note: Camy increased her capital by R240 000 on 01 September 2020. Raymond decreased his capital byR120 000 on the same date. The capital changes have been recorded.¦ The partners are entitled to the following monthly salaries:Camy R26 000Raymond R25 000Note: The partners’ salaries were increased by 10% with effect from 01 December 2020.¦ Camy and Raymond share the remaining profits or losses equally.

Hide student question Time Left : 01 : 59 : 36 Student question   On February 1, 2020, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $82,000 cash and Xie contributed land valued at $122,000 and a small building valued at $182,000. Also, the partnership assumed responsibility for Xie’s $132,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $92,000, both are to receive an annual interest allowance of 12% of their original capital investments, and any remaining profit or loss is to be shared equally. On November 20, 2020, Williams withdrew cash of $62,000 and Xie withdrew $47,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $162,000.   Required: 1. Present general journal entries to record the initial capital investments of the…

Part A Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine decided to enter into a partnership agreement with Mr. Rain, thus the status of the business was changed in 2021. In 2022, the partnership income statement for Shine & Rain was as follows: Income Statement for the year ended 31 December 2022 $ $ Revenue 11,600,000 Expenses Salaries & Wages 7,600,000 Employer NIS Contribution 1,400,000 Rent and Rates 2.400,000 Interest 500,000 Maintenance 120,000 Depreciation 550,000 Loss on Disposal of Vehicle 80,000 Telephone 235,000 Electricity 255,000 General Expenses 700,000 Donations 85,000 Provision for Bad Debts 80,000 Fines and Penalties 115,000 Drawings 105,000 14,225,000 Net Loss 2,625,000 Notes to the Income Statement 1. $55,000 of the drawings relate to Mrs. Shine and $50,000 to Mr. Rain 2. Gross Salary for Mrs. Shine was $250,000 per month, and $200,000 for Mr. Rain. Both partners worked in the business during the year. 3. The…

Question 6 For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000

Problem 2: Julia and Joshua entered into a partnership on April 1, 2013, investing P 625,000 and P 375,000, respectively. It was agreed that Julia, the managing partner, is to receive a salary of P 162,875 per annum and 10% of net income after adjustment for the salary, the partners failed to come into an agreement on how to allocate the remaining profit. On March 31, 2014, account balances are as follows:

Current Attempt in Progress After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of Sharon & Laura Partnership is $90,900. The partnership agreement specifies that profits and losses will be shared using the following formula. 1. Allocate salary allowances of $26,700 to Sharon and $37,500 to Laura. Remaining profit (loss) is to be shared on a ratio of 2:1. 2. At the beginning of the year, Sharon's capital account had a balance of $32,000 and Laura's capital account had a balance of $23,500. Sharon withdrew $1,068 cash per month while Laura withdrew $2,136 per month from the partnership. Prepare a schedule to show how the profit will be allocated to the two partners. (Round answers to O decimal places, e.g. 5,275.) SHARON & LAURA PARTNERSHIP Division of Profit Profit Salary allowance Sharon Sharon Laura LA Total

Marty has the following net § 1231 results for each of the years shown: Tax Year 2017 2018 2019 2020 Net § 1231 Loss $10,000 3,000 12,000 Net § 1231 Gain What would be the nature of the net gains in 2020? $29,000

Problem 1 At the end of the its first year of operations on December 31, 2020, HEART ATTACK Company's accounts show the following:  Partner           Mr. Chicharon    Mr. Bulalo       Mr. L. Kawali  Drawings           P 23,000           P 14,000         P 10,000  Capital               P 48,000           P 30,000        P 25,000  The capital balances 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. Net income is P 30,000. Income is shared 6:3:1 2. Net income is P 40,000, Mr. Chicharon and Mr. Bulalo are given salary allowances of P 15,000 and P 10,000, respectively. The remainder is shared equally. 3. Net income is P 19,000. Each partner is allowed interest of 10% on beginning capital balances. Mr. Chicharon is given a P 15,0000 salary…

QUESTION 23 For 2021, Forrway Corporation, an Accrual Basis calendar year corporation, had Net income Per Books of $111.550 and the following transactions Premiums on Life Insurance Policy on its key employees - $6.000: Excess Capital Losses $12,000; Excess Tax Depreciation - $9.000; Life insurance Proceeds on ife of its key employees - $s65,000: Rent Income received in 2021 - $30,000: ($20,000 is prepaid and relates to 2021x Tax-Exempt interest Income - $8,000: Federal income Tax Nability for 2021- $15,450; Prepaid Rent received and properly taxed in 2020 (but not earned for Financial Accounting purposes until 2021)-55,000: Interest Expense on Tax-Exempt Interest Income item - $2.000. The total amount " added" to Net Income Per Books for Forrway Corporation in its Schedule M-1 Reconciliation for the tax year of 2021 is: O$ 80,000. O $167,000. $ 55,450. $ 87,000.

EXERCISE 6. Journal Entries - Capital share different from capital contribution. On June 1, 2022, Al and Ace formed a partnership. Al contributed cash of P600,000, inventories of P100,000, and furniture and fixtures of P120,000. On the other hand, Ace contributed cash of P520,000, building of P330,000, and land of P200,000. The building was mortgaged for a loan amounting to P500,000 of which 70% had already been paid. The remaining balance would be assumed by the partnership. The partners agreed to share profits and losses equally. Prepare and upload journal entries related to partnership formation, assuming: 1. Each partner would be credited for the full amount of net assets invested 2. Each partner initially should have equal interest in partnership capital. To ensure this, it was agreed that partner with a lower capital balance had to invest additional cash.