FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Concept explainers
Question
EX 12-5
Dividing partnership net loss
OBJ.2
Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership
agreement provided for salary allowances of $58.000 and $41,000, respectively. Determine
the division of a $33,000 net loss for the current year, assuming that remaining income of
losses are shared equally by the two partners.
Transcribed Image Text:EX 12-5 Dividing partnership net loss
OBJ. 2
Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnersmp
agreement provided for salary allowances of $58,000 and $41,000, respectively. Determine
the division of a $33,000 net loss for the current vear, assuming that remaining income or
losses are shared equally by the two partners.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Exercise 12-7 (Algo) Journalizing partnership transactions LO P2 On March 1, Eckert and Kelley formed a partnership. Eckert contributed $95,000 cash, and Kelley contributed land valued at $76,000 and a building valued at $106,000. The partnership also took Kelley's $85,000 long-term note payable associated with the land and building. The partners agreed to share Income as follows: Eckert gets an annual salary allowance of $28,000, both get an annual Interest allowance of 9% of their initial capital Investment, and any remaining Income or loss is shared equally. On October 20, Eckert withdrew $30,000 cash and Kelley withdrew $23,000 cash. First year Income was $82,000. Required: 18. & 1b. Prepare Journal entries to record the partners' Initial capital Investments and their subsequent cash withdrawals 1c. Determine the partners' shares of Income, and then prepare Journal entries to close Income Summary and the partners' withdrawals accounts. 2. Determine the balances of the partners'…arrow_forwardProblem 11-5B Partnership entries, profit allocation, admission of a partnerLO2, 3, 4 CHECK FIGURES: c. Cr. Amrick: $259,860; Cr. Balas: $150,140; d. Dr Balas: $50,520 On July 1, 2022, Alleya Amrick and Breanne Balas formed a partnership to make crafts and sell them online. Contribution (at formation on July 1 a $43,000 note payable was taken by the partners to purchase added equipment) Profit sharing Amrick $100,000 cash $183,000 equipment Required 1. Prepare journal entries for the following dates: a. July 1, 2022 b. June 20, 2023 $153,000 salary allowance 10% of original capital investments Balance 40% Balas $183,000 cash $140,000 equipment 10% of original capital investments Balance 60% $103,000 Cash withdrawal June 20, 2023 Net Income during the year was $410,000 and was in the Income Summary account. On July 1, 2023 Calla Cameron invested $123,000 and was admitted to the partnership for a 20% interest in equityarrow_forward9arrow_forward
- vi.6arrow_forwardDividing partnership net loss Morgan Graff and Serigo Vargas formed a partnership in which the partnership agreement provided for salary allowances of $36,000 and $32,000, respectively. Determine the division of a $18,000 net loss for the current year, assuming that remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies. Morgan Graff Serigo Vargas Salary Allowance Remainder Net Loss Foodbook 3600 X $ -54,000 X $ -9,000 X 40,000 X $ -54,000 X -14,000 X $ $ Total 85,000 X -108,000 X X 23,000arrow_forwardA-7arrow_forward
- A-7arrow_forwardxA A. AaBbCcDdE AaBbCcDdE AaBbCcDc AaBbCcDdEe AaBb( AaBbCcDdEe Normal No Spacing Heading 1 Heading 2 Title Subtitle Styles Pane Dictate Sensitivi March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: $ 31,000 124,000 100,000 Cash Liabilities March, capital April, capital $108,000 59,000 95,000 Accounts receivable Inventory Land, building, and equipment (net) 73,000 May, capital 66,000 Total liabilities Total assets $328,000 $328,000 and capital Prepare journal entries for the following transactions a. Sold all inventory for $76,000 cash. b. Paid $13,500 in liquidation expenses. c. Paid $60,000 of the partnership's liabilities. d. Collected $76,000 of the…arrow_forwardDividing Partnership Net Loss Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership agreement provided for salary allowances of $51,000 and $45,000, respectively. Determine the division of a $26,000 net loss for the current year, assuming that remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies. Lynn Carpenter Matthew Fredrick Total Salary Allowance $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Remainder $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Net Loss $fill in the blank 7 $fill in the blank 8 $fill in the blank 9arrow_forward
- 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 Totalarrow_forwarddo not give answer in image formatearrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education