ded Exercise 11-5 Profit allocation in a partnership LO3 Dallas and Weiss formed a partnership to manage rental properties, by investing $171,000 and $209,000, respectively. During its first year, the partnership recorded profit of $486,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. Share to Share to Total

ded Exercise 11-5 Profit allocation in a partnership LO3 Dallas and Weiss formed a partnership to manage rental properties, by investing $171,000 and $209,000, respectively. During its first year, the partnership recorded profit of $486,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. Share to Share to Total

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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Required information Problem 12-3A (Algo) Allocating partnership income LO P2 [The following information applies to the questions displayed below] Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first calendar year, the firm earned $430,200. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $430,200 net income under each of the following separate assumptions. Problem 12-3A (Algo) Part 3 3. The partners agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to Thomas, granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your answers in the tabs below. Appropriation of profits General Journal Allocate $430,200 net indome by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to…
Exercise 3 – 9. Net Income distribution and computation of partner's capital balance On July 1, 2020, Lucia and Jacinta formed LJ Partnership with initial investment of P1,500,000 and P1,000,000, respectively. Lucia is the managing partner of the business. The articles of co-partnership provides that profit or loss shall be distributed accordingly: • 12% interest on original capital contributed by the partners. • Monthly salary of P40,000 and P20,000 respectively for Lucia and Jacinta. Lucia will be given bonus of 5% of net income of the business. The remainder shall be distributed in ratio of 4:6 to Lucia and Jacinta respectively. For the year ended December 31, 2021, the partnership reported net income of P1,200,000. 1) What is the share in net income of Lucia and Jacinta for the year ended December 31, 2021? 21 Copyright 202 1 Marivic Valenzuela-Manalo. All rights reserved. No part of this learning module may be used, reproduced, stored, or transmitted in any form or by any means…
PARTNERSHIP FORMATION
Exercise 7: Statement of Partners’ Capital Rommel and Racquel are partners dividing net income as follows: Salary allowance of P5,000 is allowed to Rommel; remainder is divided in the ratio of 4:6. The capital of Rommel and Racquel on January 1, 2019 were P30,000 and P35,000 respectively, Rommel withdrew his salary allowance for 2019 of P5,000 in October. Net income for 2019 amounted to P30,000. Required: Statement of Partners’ capital for 2019.
Cap 12 eBook Show Me How Recording Partner's Original Investment Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $18,920; accounts receivable with a face amount of $198,660 and an allowance for doubtful accounts of $7,170; inventory with a cost of $99,540; and equipment with a cost of $139,330 and accumulated depreciation of $90,560. The partners agree that $8,740 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $14,900 is a reasonable allowance for the uncollectibility of the remaining accounts, that the inventory is to be recorded at the current market price of $93,570, and that the equipment is to be valued at $61,450. Journalize the partnership's entry to record Kaiser's investment. If an amount box does not require an entry, leave it blank.
Chapter 2: Partnerships Exercise - 1 Computing initial partner investments Careem and Labeeb establish an equal partnership in both cquity and profits to operate a used- furniture business under the name of C&L Furniture. Careem contributes furniture inventory that cost $120,000 and has fair value of $160,000. Labceb contributes $60,000 cash and delivery cquipment that cost $80,000 and has a fair valuc of $60,000. Required: Assume that the initial noncash contributions of the partners are recorded at fair market value. A) Compute the ending balance of cach capital account under the bonus and goodwill approaches. B) Prepare the journal entries of the initial investments under both approaches.
Problem 6-20 modified B is invests $75,000 in BC Partnership (not a passive activity). In Year 1, B's share of the entity's loss is $50,000. In Year 2, his share of the partnership loss next year is $35,000. Bill's deductible loss from the activity in Year 1 and Year 2? At-risk amount Suspended (at-risk rules) Initial $75,000
Problem 5A partnership held three assets: Cash $ 59,000Land $ 48,000Building $ 64,000and liabilities were $ 33,000 The partners decided to dissolve the business and anticipated that expenses required toliquidate their partnership would amount to $ 5,000Capital balances were as follows: King, capital $ 24,000Murphy, capital 30,000Madison, capital 48,000Pond, capital 36,000The partners shared profits and losses 10:20:30:40 respectively.The cash on hand was used to pay the liabilities. Any remaining cash in excess ofthe amount needed for anticipated liquidation expenses was immediatelydistributed to the partners.a. What is the total amount of cash that was immediately available to be distributed to the partners? b. The cash (in item a.) was distributed to each partner in a single payment.Show the total payment amount to each partner. (Show the amount of thesingle check that was written to each partner.) Support your answer with apredistribution plan (or schedule).
A-7
A-7
Recording Partner's Original Investment Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $19,820; accounts receivable with a face amount of $208,110 and an allowance for doubtful accounts of $7,510; merchandise inventory with a cost of $80,520; and equipment with a cost of $155,210 and accumulated depreciation of $100,890. The partners agree that $9,160 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $15,610 is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $75,690, and that the equipment is to be valued at $68,440. Journalize the partnership's entry to record Kaiser's investment. If an amount box does not require an entry, leave it blank. Accounts Payable Allowance for Doubtful Accounts Cash…
Exercise 12-15 (Algo) Partner return on equity LO A1 Rugged Sports Enterprises LP is organized as a limited partnership consisting of two individual partners: Hockey LP and Football LP. Hockey LP $ 339,000 Football LP $ 1,389,900 734,925 (150,000) 35,850 $ 1,974,825 Beginning-year capital balance Annual net income Cash distribution Ending-year capital balance Compute partner return on equity for each LPand the total) for the year using the above data from Rugged Sports Enterprises LP. Complete this question by entering your answers in the tabs below. Return on Partner Return Equity on Equity $ 374,850 Rugged Sports Enterprises LP Compute partner return on equity for the year using the above data from Rugged Sports Enterprises LP. Return on Equity. Choose Numerator: ✓ Choose Denominator: 1 1