Example 3 (Equity: Business Ownership): Hanna, Ursula, Thomas and Günther engage in a partnership named "Chick Enterprise. Chick generates a net income of 75.000 $. 1) Ursula, Thomas and Günther get salary allowances for their extra professional service for At clients, as follows: 12.000$ for Ursula; 9.000 $ for Thomas and 3.000 for Günther respectively. 11) Average capital balances during the year are as follows: Hanna Ursula Thomas Günther 42.000 $ 4.200 $ 12.600 $ 25.200 $ Partners agreed for a 7.25 interest allowance for each partner at the end of the year. 84.000 $ [II) After salary & interest allowances, the remainder will be allocated from a fixed ratio of [5:2:4:1] for [Hanna: Ursula: Thomas: Günther] Find each partner's capital (equity) and do the closing entry

Example 3 (Equity: Business Ownership): Hanna, Ursula, Thomas and Günther engage in a partnership named "Chick Enterprise. Chick generates a net income of 75.000 $. 1) Ursula, Thomas and Günther get salary allowances for their extra professional service for At clients, as follows: 12.000$ for Ursula; 9.000 $ for Thomas and 3.000 for Günther respectively. 11) Average capital balances during the year are as follows: Hanna Ursula Thomas Günther 42.000 $ 4.200 $ 12.600 $ 25.200 $ Partners agreed for a 7.25 interest allowance for each partner at the end of the year. 84.000 $ [II) After salary & interest allowances, the remainder will be allocated from a fixed ratio of [5:2:4:1] for [Hanna: Ursula: Thomas: Günther] Find each partner's capital (equity) and do the closing entry

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

18 Pepe and Pilar are partners having capital balances of P 35,000 and P 25,000, respectively. They share profits in the ratio of 6:4. Juan is to invest sufficient cash to give him a 40% interest in the new capital, which is proportionate to his share in the earnings. The old partners will share in the balance of the earnings using their original profit sharing ratio. to 000.8 REQUIRED: a. Give the entry to record the admission of Juan. b. Show the interest of each partner (expressed as a percentage) in the total capital before and after the admission of Juan. c. What is the new profit and loss sharing ratio?
Can I please get help with this question?(6.5) Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $416,100. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.
12. Bert, Ben and Bello are partners in a sports equipment store with capital investments of P150,000, P200,000 and P300,000, respectively. Partnership agreement provides for the following monthly salary of P10,000 to Ben who is the managing partner, 12% interest on capital contributions, remaining profit to be allocated equally. Direction: For Ben to be credited for a profit share of P200,000, how much should the company earn?
Hello! Please only choose the correct answer. Thank you.
What is the ending basis for Phil Williams and Liz Johnson? (Round your intermediate calculations to nearest whole dollar value.)
Regina Harrison is a partner in Pressed for Time. An analysis of Regina Harrison's capital account indicates that during the most recent year, she withdrew $20,000 from the partnership. Her share of the partnership's net loss was $16,000 and she made an additional equity contribution of $10,000. Her capital account ended the year at $150,000. What was her capital balance at the beginning of the year? a. $124,000 O b. $176,000 ○ c. $192,000 Od. $144,000
Problem Mr. Renato and Mr. Walter, both married and are certified public accountants, formed general professional partnership during the current taxable year to render consultancy services to the public. The partners share profits and losses equally. The result of the partnership's operation showed the following data: Gross receipt from clients Costs of services P 1,000,000 300,000 Business expenses 240,000 Additional information provided: a. Mr. Renato, married with three qualified dependent children, has other income derived from business as follows: P 400,000 120,000 80,000 Gross sales Costs of expenses Operating taxes b. Travelling expenses incurred by the partners related to GPP's operation, which were neither claimed by the GPP as deduction income nor liquidated by the partnership: 15,000 10,000 Mr. Renato Mr. Walter c. Mr. Walter, married with five qualified dependents, received compensation income of P 250,000 as part -time college professor. Required: Determine the net taxable…
Mee Su is a partner in Hartford Partners, LLC. Her partnership capital balance at the beginning of the current year was $110,000, and her ending balance was $124,000. Her share of the partnership income is $10,500. What is her partner return on equity?
Dd.112.
1 John and Mary are equal partnership in a partnership. John's beginning basis is 50,000 and Mary's beginning basis is 70,000 Sales 200,000 Long term capital gain Short term capital loss 6,000 -4,000 Dividend income 2,000 salaries 50,000 Rent Expense 20,000 Interest income 5,000 Depreciation Section 179 expense 30,000 20,000 Distribution to Mary 40,000 Distrbution to John 30,000 1 Calculate ordinary income 2 Calculate Separately Reported Items 3 Calculate ending basis for John and Mary.
Required information Important Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. [The following information applies to the questions displayed below.] ** Ramer and Knox began a partnership by investing $68,000 and $102,000, respectively. During its first year, the partnership earned $205,000. Prepare calculations showing how the $205,000 income is allocated under each separate plan for sharing Income and loss. Important Notel Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. 1. The partners did not agree on a plan, and therefore share Income equally Ramer Knox Show Transcribed Text
44. Help me selecting the right answer. Thank you