Dividing Partnership Net IncomeRequired:Steve Conyers and Chelsy Stevens formed a partnership, dividing income as follows:1. Annual salary allowance to Conyers of $125,280.2. Interest of 7% on each partner's capital balance on January 1.3. Any remaining net income divided to Conyers and Stevens, 1:2.Conyers and Stevens had $66,000 and $105,000, respectively, in their January 1 capital balances. Net income for the year was $216,000. How much is distributed toConyers and Stevens?Note: Compute partnership share.Conyers: $Stevens: $

Partnership refers to the agreement among the partners who have agreed to share profit and losses in…

Answered: Dividing Partnership Net Income…

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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Dividing Partnership Net Income Required: Steve Conyers and Chelsy Dane formed a partnership, dividing income as follows: Annual salary allowance to Dane of $172,260. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Conyers and Dane, 1:2. Conyers and Dane had $87,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $297,000. How much is distributed to Conyers and Dane? Note: Compute partnership share.Conyers: $Dane: $
Dividing Partnership Income. Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation in the year's net income of $110,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:2. d. Salary allowances of $40,000 and $48,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $40,000 and $48,000, respectively, and the remainder divided equally. Hawes Albright (a) (b) (c) (d) (e) 00000 00000
Dividing partnership income Carmelo Fernandez and Bobby Morett formed a partnership, investing $187,500 and $62,500, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $45,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $38,000 and $45,000, respectively, and the remainder divided equally. Fernandez Morett a. b. C. d. e.
Domestic
Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $217,500 and $72,500, respectively. Determine their participation in the year's net income of $107,000 under each of the following independent assumptions: No agreement concerning division of net income. Divided in the ratio of original capital investment. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. Salary allowances of $36,000 and $47,000, respectively, and the balance divided equally. Allowance of interest at the rate of 6% on original investments, salary allowances of $36,000 and $47,000, respectively, and the remainder divided equally. Dawson McDonald a. $fill in the blank 1 $fill in the blank 2 b. $fill in the blank 3 $fill in the blank 4 c. $fill in the blank 5 $fill in the blank 6 d. $fill in the blank 7 $fill in the blank 8 e. $fill in the blank 9 $fill in the blank 10
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Dividing Partnership Net IncomeSteve Queen and Chelsy Bernard formed a partnership, dividing income as follows:Annual salary allowance to Queen of $112, 560. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Queen and Bernard, 1:2. Queen and Bernard had $51,000 and $105,000, respectively, in their January 1 capital balances. Net income for the year was $201,000. How much net income should be distributed to Queen and Bernard?
Dividing Partnership IncomeBeau Dawson and Willow McDonald formed a partnership, investing $120,000 and $ 180,000, respectively.Determine their participation in the year's net income of $295,000 under each of the following independent assumptions:a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $50,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $38,000 and $50,000, respectively, and the remainder divided equally.
The partners of Triple A Partnership are Adah, Ana and Ara. During the current year, their average capital balances are as follows: Adah –P 180,000; Ana – P160,000; Ara - P 150,000. The articles of partnership provided the following terms: 1. Annual interest of 8% on their average capital balances. 2. Salary allowances as follows: Adah – P 50,000 and Ana - P 80,000. 3. Ana shall receive bonus of 15% of income in excess of P40,000 after partner's interest and salary allowances. 4. Residual profits shall be divided in the ratio of 2:2:6 to Adah, Ana and Ara. What amount will Ana receive if the net income earned is P 470,000? *
Dividing Partnership Income Beau Dawson and Willow McDonald formed a partnership, investing $100,000 and $150,000, respectively. Determine their participation in the year's net income of $290,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $34,000 and $49,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $34,000 and $49,000, respectively, and the remainder divided equally.
Nicholas and Sarah began a partnership by investing $52,000 and $78,000. During the first year running, it had net income $180,000 A. allocation based on no agreement B. allocation based on partner initial investment C. allocation based on partnership conditions Nicholas Sarah 1) salary allowance 85000 65000 2) Interest allowance 10%on initial investment 3) split rest of balance equally
Ending Partner balances Burns and Allan have formed a partnership and invested $20.000 and $40,000, respectively. They have agreed to share profits as follows: 1) Burns is to receive a "salary" of $20.000 and Allan is to receive a "salary" of $30,000. 2) $30.000 is to be allocated according to their original capital contributions to the partnership. 3) The remainder is to be allocated 2:3 respectively Assuming that the business had a loss of $15000, allocate the loss to Burns and Allan.

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