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- AB Partnership is a commercial partnership formed by Atienza and Bautista. The results of operations for the year 2021, its 5h year of operations, were as follows: Gross sales 25,000,000 Cost of sales 10,000,000 Salaries expense Rent expense Utilities expense Depreciation expense Miscellaneous expense Personal income and expenses of the partners: 3,800,000 1,650,000 175,000 120,000 48,000 Atienza Bautista 3,250,000 1,170,000 250,000 Gross income 3,800,000 Deductible expenses Dividend from domestic corp. Dividend from foreign corp. Prize, supermarket raffle Royalties, books 2,050,000 300,000 120,000 82,500 150,000 75,000 180,000 100,000 8. How much is the net taxable income of the general partnership? 9. How much is the regular corporate income tax due? Tax rate RCIT is 25% 10. How much is the minimum corporate income tax? Tax rate MCIT is 1% 11. How much is the share of each partner in the net income of the partnership? "nothing followsKimble, Sykes, and Gerard open an accounting practice on January 1, 2022, in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $233,000, $192,500, and $104,500, respectively. An articles of partnership agreement is drawn up stipulating the following: • • Personal drawings are allowed annually up to an amount equal to 10 percent of the partner's beginning capital balance for the year. Profits and losses are allocated according to the following plan: 1. Each partner receives an annual salary allowance of $55 per billable hours worked. 2. Interest is credited to the partners' capital accounts at the rate of 12 percent of the beginning capital balance for the year. 3. Kimble and Sykes are eligible for an annual bonus of 10 percent of net income after subtracting the bonus, salary allowance, and…Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $93,000 cash from Busby and $207,000 from Beatty. During Year 1, the partnership earned $62,900 in cash revenues and paid $34,050 for cash expenses. Busby withdrew $2,900 cash from the business, and Beatty withdrew $4,700 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement (statement of changes in equity),
- Kimble, Sykes, and Gerard open an accounting practice on January 1, 2022, in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $248,000, $200,000, and $112,000, respectively. An articles of partnership agreement is drawn up stipulating the following: Personal drawings are allowed annually up to an amount equal to 10 percent of the partner's beginning capital balance for the year. Profits and losses are allocated according to the following plan: Each partner receives an annual salary allowance of $55 per billable hours worked. Interest is credited to the partners’ capital accounts at the rate of 12 percent of the beginning capital balance for the year. Kimble and Sykes are eligible for an annual bonus of 10 percent of net income after subtracting the bonus, salary allowance, and interest. The…Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $101,500 cash from Busby and $188,500 from Beatty. During Year 1, the partnership earned $62,500 in cash revenues and paid $35,200 for cash expenses. Busby withdrew $2,300 cash from the business, and Beatty withdrew $5,300 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for B&B's Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Income Statement Assets Cash Capital Statement Prepare a balance sheet. Note: Do not round intermediate calculations and round your final answer to the nearest whole dollar amount. Total assets Liabilities Equity F. Busby, Capital J. Beatty, Capital Balance Sheet Statement of Cash Flows…McGill and Smyth have capital balances on January 1 of $41,000 and $34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGill and $17,000 for Smyth, (2) interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (a) (1) Prepare a schedule showing the distribution of net income, assuming net income is $85,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) Salary allowance Interest allowance Total salaries and interest DIVISION OF NET INCOME McGill Smyth $ Total $ Remaining income/ deficiency Total division of net income $ $ $ (2) Prepare a schedule showing the distribution of net income, assuming net income is $23,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) Salary allowance…
- The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,500, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land ($1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses (Negative amounts should be indicated by a minus sign.) Problem 20-61 Part a (Algo) a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). Req A1 Complete this question by entering your answers in the tabs below. Req A2 $ 80,700 6,900 (28,200) (18,100) (17,200) (4,600) Description Separately Stated Items on Schedule K-1: §1231 gains Cash charitable contributions Compute Gary's share of separately stated…The A & B Partnership was established since 2005. On January 1, 2015, the partners agree to admit partner (C). Capital account balances and profit and loss sharing ratios at January 1, 2015, before the admission of partner (C), are as follows: Partner (A) (30%) $63,000 Partner (B) (70%) $97,000 Partner (C) invested $120,000 cash to the partners for 60% of capital interest and the partners agree about assets revaluation. The capital balance of partner B after admission is a. $82,000. a. $82,000. b. $78,000. b. $78,000. c. $91,000. c. $91,000. d. $97,000.NN and OO created a partnership to own and operate a health- food store. The partnership agreement provided that NN receive a salary of 100,000 and OO a salary of 50,000 to recognize their relative time spent in operating the store. Remaining profits and losses were divided 60:40. Income for 2018, the first year of operations, of 130,000 was allocated as 88,000 to NN and 42,000 to OO. On January 1, 2019, the partnership agreement was changed to reflect the fact that OO could no longer devote any time to the store’s operation. The new agreement allows NN a salary of 180,000 and the remaining profit or loss be allocated equally. During 2019, an error was discovered such that the 2018 net income reported was understated by 40,000. The partnership income for 2019 including the 40,000 error was 250,000. Allocate the 250,000 to the partners.
- Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $109,200 cash from Busby and $170,800 from Beatty. During Year 1, the partnership earned $67,500 in cash revenues and paid $27,350 for cash expenses. Busby withdrew $1,900 cash from the business, and Beatty withdrew $4,000 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for B&B's Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Income Capital Statement Statement Balance Sheet Prepare a balance sheet. (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.) Assets Cash Stmt of Cash Flows Total assets Liabilities B&B PARTNERSHIP Balance Sheet As of December 31, Year 1…Crush and Ni are in partnership and prepare their accounts to December 31 each year.On July 1, 2015, Sir joined the partnership. Profit sharing arrangements are:6 months toJune 30, 20156 months toDecember 31, 2015Salary Allowances Crush P15,000 P25,000Share in residual profit Crush 60% 40%Ni 40% 40%Sir - 20%The partnership’s net income for the year ended December 31, 2015 was P350,000accruing evenly over the year. What are the partner’s total profit shares for the yearended December 31, 2015?Peeta, Katniss and Gale formed a partnership on January 1, 2015 and contributed P150,000,P200,000 and P250,000, respectively. Their articles of co-partnership provide that the operatingincome be shared among the partners as follows: as salary, P24,000 for Peeta, P18,000 for Katnissand P12,000 for Gale; interest of 12% on the average capital during 2015 of the three partners andthe remainder in the ratio of 4:2:4, respectively. The operating income for the year-ended December31, 2015 amounted to…The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows: Dennis Overton $180,000 Ben Testerman 120,000 The following additional partner transactions took place during the year: In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest. Net income of $150,000 was earned in 2015. In addition, Dennis Overton received a salary allowance of $40,000 for the year The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income. Prepare a statement of partnership equity for the year ended December 31, 20Y5.
