the capital balance and profits and loss - sharing percentages for the sip,job, and Run parther ship at December, 31 2016 are as follows: Sip capital (30%) 160,000 job capital (50%) 180,000 Run capital (20 %) 140,000. the partners agree to admit wal into the partnesship on junuary 1, 2017, for a 20 percent interest in the capital and income of the business. 1. prepare the jounal entry of entries to record wal's to the partnership that he invests $ 100,000 in the partnership for the 20 percent interest and that partnership capital is revalued. Assume that the book value of partnership assets equals the fair value. 2. Prepare the jounal entry or intries to record wal's admission to the partnership assuming that he invests $140,000 in the partnership for the 20 percent interest and that partnership capital is revalued.

the capital balance and profits and loss - sharing percentages for the sip,job, and Run parther ship at December, 31 2016 are as follows: Sip capital (30%) 160,000 job capital (50%) 180,000 Run capital (20 %) 140,000. the partners agree to admit wal into the partnesship on junuary 1, 2017, for a 20 percent interest in the capital and income of the business. 1. prepare the jounal entry of entries to record wal's to the partnership that he invests $ 100,000 in the partnership for the 20 percent interest and that partnership capital is revalued. Assume that the book value of partnership assets equals the fair value. 2. Prepare the jounal entry or intries to record wal's admission to the partnership assuming that he invests $140,000 in the partnership for the 20 percent interest and that partnership capital is revalued.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 9E

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YES Partnership started operations on January 1 , 2016 with the following capital balances : Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions : Yves will be given an annual salary of P15,000 and Ernest P10,000 All partners will be given 20 % interest on beginning capital balances every year Bonus of 25% of Net Income will be given to Serge The balance of the profit , or the loss , will be divided on a 4/5 / 1 to Yves , Ernest and Serge , respectively . A. Assuming that the company resulted in a net loss of 250.000 in 2016 : 1. What is the share of Yves in Net Profit or Net Loss for 2016 ? 2. What is the share of Ernest in Net Profit or Net Loss for 2016 ? 3. What is the share of Ernest in Net Profit or Net Loss for 2016?
YES Partnership started operations on January 2, 2016 with the following capital balances: Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions: - Yves will be given an annual salary of P16,000 and Serge P8,000 - All partners will be given 10% interest on beginning capital balances every year - The balance of the profit, or the loss, will be divided on a 2:5:3 to Yves, Ernest and Serge, respectively. In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each year. Required: Compute for the following: 1. Share in Net Profit or Net Loss for 2016 and 2017 2. Ending Capital of each partner for 2016 and 2017
YES Partnership started operations on January 2, 2016 with the following capital balances: Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions: Yves will be given an annual salary of P16,000 and Serge P8,000 All partners will be given 10% interest on beginning capital balances every year The balance of the profit, or the loss, will be divided on a 2:3:5 to Yves, Ernest and Serge, respectively. Each partner is allowed to withdraw up to P8,000 every year In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each year. Required: Compute for the following: Share in Net Profit or Net Loss for 2016 and 2017 Ending Capital of each partner for 2016 and 2017
YES Partnership started operations on January 2, 2016 with the following capital balances: Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions: • Yves will be given an annual salary of P16,000 and Serge P8,000 • All partners will be given 10% interest on beginning capital balances every year • The balance of the profit, or the loss, will be divided on a 2:5:3 to Yves, Ernest and Serge, respectively. In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each year. Required: Compute for the following: 1. Share in Net Profit or Net Loss for 2016 and 2017 2. Ending Capital of each partner for 2016 and 2017 • Net income before salary interest bonus (NIBSIB) • Net income after salary interest bonus (NIASIB) • Net income before salary interest after bonus (NIBSIAB) • Net income after salary interest…
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?
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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 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?
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At the end of its first year of operations on December 31, 2020, Blossom Company's accounts show the following. Partner Drawings Capital Art Niensted $22,500 $40,000 Greg Bolen 13,500 30,000 Krista Sayler 10,000 22,000 The capital balance represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners' capital accounts. To record the division of net income for the year 2020 under each of the following independent assumptions. 1. Net income is $28,000. Income is shared 6:3:1. 2. Net income is $38,000. Niensted and Bolen are given salary allowances of $14,500 and $10,000, respectively. The remainder is shared equally. 3. Net income is $18,000. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $14,800 salary allowance. The remainder is shared equally. (b) Your answer is partially correct. Journalize the entry to record the division of net income for the year 2020 under each of the…
The partnership of Toy and Tay provides that interest t 10% is to be credited to each partner on the basis of average capital balances. A summary of Tay Capital account for the year ended December 31, 2016 is as follows: 140,000.00 Balance, January 01 40,000.00 Additional Investment, July 01 15,000.00 Withdrawal, Aug 01 What amount of interest should be credited to Tay capital account for 2016? Select the correct response: P17,250.00 P15,250.00 P16,500.00 P15,375.00
Show how the following items will appear in the capital accounts of the partners Ali and Ahmed when their capital is Fixed Ahmed(R. Particulars Ali (R.O ) Capital on 01.01.2015 90,000 70,000 Drawings during 12,000 9,000 2015-2016 Interest on Drawings 360 270 Interest on Capital 5,400 4,200 Partner's salary 12,000 --- Commission 6,000 Share of profit for 6,000 4,000 2015-16
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 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?