On October ​1, 2024​, Apollo​, Brett​, and Clark formed the​ A, B and C partnership. Apollo contributed $27,300​; Brett​, $42,900​; and Clark​, $59,800. Apollo will manage the​ store; Brett will work in the store​ three-quarters of the​ time; and Clark will not work in the business.   Read the requirements LOADING... .   Requirement 1. Compute the​ partners' shares of profits and losses under each of the following​ plans:   a. Net loss for the year ended September 30​, 2025​, is $55,000​, and the partnership agreement allocates 70​% of profits to Apollo​, 15​% to Brett​, and 15​% to Clark. The agreement does not discuss the sharing of losses. ​(Use parentheses or a minus sign for loss amounts. Complete all answer boxes. For amounts that are​ $0, make sure to enter​ "0" in the appropriate​ cell.)   A, B and C Allocation of Profits and Losses     Apollo Brett Clark Total   a. Net income (loss)             Capital allocation:             Apollo             Brett             Clark             Total capital allocation             Net income (loss) remaining for allocation             Net income (loss) allocated to each partner           b. Net income for the year ended September 30​, 2025​, is $97,000. The first $20,000 is allocated on the basis of relative partner capital balances. The next $44,000 is based on​ services, with $34,000 going to Apollo and $10,000 going to Brett. Any remainder is shared equally. ​(Complete all answer boxes. For amounts that are​ $0, make sure to enter​ "0" in the appropriate​ column.)   A, B, and C Allocation of Profits and Losses     Apollo Brett Clark Total   b. Net income (loss)             Capital allocation:             Apollo             Brett             Clark             Total capital allocation             Net income (loss) remaining for allocation             Sharing of next portion based on service:             Net income (loss) remaining for allocation             Remainder shared equally:             Net income (loss) remaining for allocation             Net income (loss) allocated to each partner           Requirement 2. Using plan​ b, prepare the partnership statement of​ partners' equity for the year ended September 30​, 2025. Assume Apollo​, Brett​, and Clark each withdrew $8,000 from the partnership during the year.   Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. ​(Complete all answer boxes. For amounts that are​ $0, make sure to enter​ "0" in the appropriate​ cell.)   A, B, and C Statement of Partners' Equity For the Year Ended September 30, 2025     Apollo Brett Clark Total                                                                 Choose from any list or enter any number in the input fields and then continue to the next question.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On
October
​1,
2024​,
Apollo​,
Brett​,
and
Clark
formed the​ A, B and C partnership.
Apollo
contributed
$27,300​;
Brett​,
$42,900​;
and
Clark​,
$59,800.
Apollo
will manage the​ store;
Brett
will work in the store​ three-quarters of the​ time; and
Clark
will not work in the business.
 
Read the
requirements
LOADING...
.
 
Requirement 1. Compute the​ partners' shares of profits and losses under each of the following​ plans:
 
a. Net loss for the year ended
September
30​,
2025​,
is
$55,000​,
and the partnership agreement allocates
70​%
of profits to
Apollo​,
15​%
to
Brett​,
and
15​%
to
Clark.
The agreement does not discuss the sharing of losses. ​(Use parentheses or a minus sign for loss amounts. Complete all answer boxes. For amounts that are​ $0, make sure to enter​ "0" in the appropriate​ cell.)
 
A, B and C
Allocation of Profits and Losses
 
 
Apollo
Brett
Clark
Total
 
a.
Net income (loss)
 
 
 
 
 
 
Capital allocation:
 
 
 
 
 
 
Apollo
 
 
 
 
 
 
Brett
 
 
 
 
 
 
Clark
 
 
 
 
 
 
Total capital allocation
 
 
 
 
 
 
Net income (loss) remaining for allocation
 
 
 
 
 
 
Net income (loss) allocated to each partner
 
 
 
 
 
b. Net income for the year ended
September
30​,
2025​,
is
$97,000.
The first
$20,000
is allocated on the basis of relative partner capital balances. The next
$44,000
is based on​ services, with
$34,000
going to
Apollo
and
$10,000
going to
Brett.
Any remainder is shared equally. ​(Complete all answer boxes. For amounts that are​ $0, make sure to enter​ "0" in the appropriate​ column.)
 
A, B, and C
Allocation of Profits and Losses
 
 
Apollo
Brett
Clark
Total
 
b.
Net income (loss)
 
 
 
 
 
 
Capital allocation:
 
 
 
 
 
 
Apollo
 
 
 
 
 
 
Brett
 
 
 
 
 
 
Clark
 
 
 
 
 
 
Total capital allocation
 
 
 
 
 
 
Net income (loss) remaining for allocation
 
 
 
 
 
 
Sharing of next portion based on service:
 
 
 
 
 
 
Net income (loss) remaining for allocation
 
 
 
 
 
 
Remainder shared equally:
 
 
 
 
 
 
Net income (loss) remaining for allocation
 
 
 
 
 
 
Net income (loss) allocated to each partner
 
 
 
 
 
Requirement 2. Using plan​ b, prepare the partnership statement of​ partners' equity for the year ended
September
30​,
2025.
Assume
Apollo​,
Brett​,
and
Clark
each withdrew
$8,000
from the partnership during the year.
 
Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. ​(Complete all answer boxes. For amounts that are​ $0, make sure to enter​ "0" in the appropriate​ cell.)
 
A, B, and C
Statement of Partners' Equity
For the Year Ended September 30, 2025
 
 
Apollo
Brett
Clark
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Choose from any list or enter any number in the input fields and then continue to the next question.
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