Problem 9-21 (Algo) (LO 9-6) The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: . Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit. Each partner receives 11 percent interest on average capital investment. ⚫ Any residual profit or loss is divided equally. The average capital investments for 2024 were as follows: $ 85,000 170,000 255,000 Jones King Lane Required: The partnership earned $42,000 net income for 2024. Prepare a schedule showing how the 2024 net income should be allocated to the partners. Note: Loss amounts should be indicated with a minus sign. Net income Bonus Interest Remainder to allocate Total allocation Jones King Lane Total 0 0 $ 0 0 $ 0 $ 0 $ 0 $ 0
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- Find Bonus, Interest, and Reminder to allocate for each The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: Jones, the managing partner, receives a bonus equal to 10 percent of the business’s profit. Each partner receives 10 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones $ 80,000 King 160,000 Lane 240,000 The partnership earned $40,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partnersThe partnership agreement of Jones, King, and Lane provides for the annual allocation of the business’s profit or loss in the following sequence:∙ Jones, the managing partner, receives a bonus equal to 20 percent of the business’s profit.∙ Each partner receives 15 percent interest on average capital investment.∙ Any residual profit or loss is divided equally.The average capital investments for 2018 were as follows: Jones . . . . . . . . . . . . . . .. . . . $100,000King . . . . . . . . . . . . . . . . . . . . 200,000Lane . . . . . . . . . . . . . . . . . . . . 300,000 How much of the $90,000 partnership profit for 2018 should be assigned to each partner?17 AA and BB have been partners for a decade. As of January 1, 2022, the capital balances of AA and BB are: AA, capital P55,000 BB, capital 75,000 Partnership agreement provides for the following manner of profit distribution: Annual salaries of P80,000 and P100,000 will be provided to AA and BB, respectively. A bonus of 20% based on net income will be given to AA 30% of the remaining profit or loss is distributed to AA with the balance provided to BB In 2022, the partnership reported net income of P250,000. On January 1, 2023, CC was admitted as a partner by investing P70,000 for a 25% interest in the capital of the partnership. The partners agreed that the plant assets of the partnership were to be increased by P30,000. The profit and loss sharing agreement was revised to: Annual salaries of P80,000, P100,000 and P70,000 will be provided to AA, BB and CC, respectively. A bonus of 20% based on net income will be given to AA and a 5% bonus based on net income…
- The partnership agreement of Jones, King, and Lane provides the annual allocation of the business's profit or loss in the following sequence: Jones, the managing partner, receives a bonus equal to 25 percent of the business's profit. Each partner receives 20 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2018 were as follows: $ 185,000 370,000 Jones King Lane 555,000 How much of the $82,000 partnership profit for 2018 should be assigned to each partner? Income Assignment Jones King LaneThe partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit. Each partner receives 18 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2018 for 2018 were as follows: Jones $250,000 King $350,000 Lane $525,000 How much of the $78,000 partnership profit for 2018 should be assigned to each partner?The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of 12,000 and ₱ 8,000, respectively. A bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. (Deduct the salaries to the profit, as basis for computation) Each partner shall receive 10% interest on average capital investments. Any remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: A ₱100,000 B 60,000 C 120,000 The partnership earns profit of ₱100,000. Requirement: Compute and explain for the respective shares of the partners on the partnership profit.
- 20. The partnership agreement of Socorro and Torres provides that interest at 10% is to be credited to each partner on the basis of average capital balances. A summary of Torres Capital account for the year ended December 31, 2020 is as follows: Balance January 1 Additional Investment, July 1 Withdrawal, August 1 P 304,500 87,000 32,625 What amount of interest should be credited to Torres Capital account? a. P33,168.75 b. P33,440.625 C. P35,887.50 d. P37,518.75 21. Simple and Elegant share profits and losses equally, Simple and Elegant receive salary allowances of P105,000 and P157,500, respectively, and both partners receive 10% interest on their average capital balances. Average capital balances are calculated at the beginning of each month regardless of when the capital contributions and capital withdrawals were made and partners' drawings are not used in determining the average capital balances. Total net income for 2020 is P630,000. Simple P525,000 Elegant P630,000 January 1…The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: • Jones, the managing partner, receives a bonus equal to 20 percent of the business’s profit. • Each partner receives 15 percent interest on average capital investment. • Any residual profit or loss is divided equally. The average capital investments for 2015 were as follows: Jones $ 105,000 King 210,000 Lane 315,000 How much of the $60,000 partnership profit for 2015 should be assigned to each partner?2. Use the following information for the next three cases: The partnership agreement of A, B and C stipulates the following: Partners A and C shall receive annual salaries of P12,000 and P8,000, respectively. DA bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. Each partner shall receive 10% interest on average capital investments. TAny remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: AP100,000 B 60,000 C 120,000 Case #1: The partnership earns profit of P100,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #2: The partnership earns profit of P10,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #3: The partnership incurs loss of P20,000. Requirement: Compute for the respective shares of the partners on the…
- The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: Jones, the managing partner, receives a bonus equal to 10 percent of the business’s profit. Each partner receives 10 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones $ 80,000 King 160,000 Lane 240,000 The partnership earned $40,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners. (Loss amounts should be indicated with a minus sign.)The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: • Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit. • Each partner receives 20 percent interest on average capital investment. • Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones King Lane $ 180,000 240,000 300,000 The partnership earned $60,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners. (Loss amounts should be indicated with a minus sign.) Net income Bonus Interest Remainder to allocate Total allocation Jones King Lane TotalThe partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: Jones, the managing partner, receives a bonus equal to 15 percent of the business’s profit. Each partner receives 11 percent interest on average capital investment. Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones $ 85,000 King 170,000 Lane 255,000 The partnership earned $42,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners. Find Bonus, Interest, and Reminder to allocate for each