J. Bean and D. Counter formed a partnership. During the current
year, the partnership had the...
J. Bean and D. Counter formed a partnership. During the current
year, the partnership had the following income and expenses:
Gross income from operations
$135,000
Gain on sale of antique abacus (a business asset)
4,000
Interest income from business bank account
100
Deductions:
Salaries to employees
$65,000
Payroll taxes
5,000
Rent
8,000
Depreciation
3,500
Contribution to United Way charity
2,000
Foreign tax paid on overseas business deals
3,000
Distributions to the partners
$40,000
...
1. During 2017, the partnership of Kiki and Tammy earned net income
of $ 125,000. Kiki’s...
1. During 2017, the partnership of Kiki and Tammy earned net income
of $ 125,000. Kiki’s beginning capital was $ 60,000 and she
withdrew $15,000 during the year. Tammy’s beginning capital $
70,000 and she had drawings of $22,000 for the year.
Instructions:
(a) Assume the partnership income- sharing agreement calls for
income to be divided with a salary of $ 30,000 to Kiki and $ 25,000
to Tammy, interest of 10% on beginning capital, and the remainder
divided 60%...
Able, Baker, and Collins formed a partnership on January 1,
2016, with investments of $200,000, $250,000,...
Able, Baker, and Collins formed a partnership on January 1,
2016, with investments of $200,000, $250,000, and $350,000,
respectively. For division of income, they agreed to (1) interest
of 10% of the beginning capital balance each year, (2) annual
compensation of $25,000 to Able, $20,000 to Baker and $15,000 to
Collins, and (3) sharing the remainder of the income or loss in a
ratio of 25% for Able, and 25% for Baker and 50% for Collins.
Partnership net income was...
On 1 January 2020, Cally and Nora formed a partnership by making
the following capital contributions:...
On 1 January 2020, Cally and Nora formed a partnership by making
the following capital contributions:
Cally $130,000 in cash
Nora $190,000 in equipment
The profit of $230,000 for the year ended 31 December 2020 is to
be allocated assuming a $40,000 salary to Cally and a $35,000
salary to Nora. The partners will also receive an interest
allowance of 10% on their capital investments. Any remaining profit
is to be shared equally.
Required:
Prepare the general journal entries to...
Wallace and Simpson formed a partnership or Wallace
contributing $68,000 and Simpson contributing $48,000 the
partnership...
Wallace and Simpson formed a partnership or Wallace
contributing $68,000 and Simpson contributing $48,000 the
partnership agreement cost for the income lost Vision to be based
on the ratio of capital Investments the partnership had income of
$145,000 for his first year of operation when the income summary is
closed the journal entry to allocate partner income is
On February 1, 2020, Tessa Williams and Audrey Xie formed a
partnership in Ontario. Williams contributed...
On February 1, 2020, Tessa Williams and Audrey Xie formed a
partnership in Ontario. Williams contributed $82,000 cash and Xie
contributed land valued at $122,000 and a small building valued at
$182,000. Also, the partnership assumed responsibility for Xie’s
$132,000 long-term note payable associated with the land and
building. The partners agreed to share profit or loss as follows:
Williams is to receive an annual salary allowance of $92,000, both
are to receive an annual interest allowance of 12% of...
Cody Jenkins and Lacey Tanner formed a partnership to provide
landscaping services. Jenkins and Tanner shared...
Cody Jenkins and Lacey Tanner formed a partnership to provide
landscaping services. Jenkins and Tanner shared profits and losses
equally. After all the tangible assets have been adjusted to
current market prices, the capital accounts of Cody Jenkins and
Lacey Tanner have balances of $32,000 and $42,000, respectively.
Valeria Solano has expertise with using the computer to prepare
landscape designs, cost estimates, and renderings. Jenkins and
Tanner deem these skills useful; thus, Solano is admitted to the
partnership at a...
Cody Jenkins and Lacey Tanner formed a partnership to provide
landscaping services. Jenkins and Tanner shared...
Cody Jenkins and Lacey Tanner formed a partnership to provide
landscaping services. Jenkins and Tanner shared profits and losses
equally. After all the tangible assets have been adjusted to
current market prices, the capital accounts of Cody Jenkins and
Lacey Tanner have balances of $65,000 and $85,000, respectively.
Valeria Solano has expertise with using the computer to prepare
landscape designs, cost estimates, and renderings. Jenkins and
Tanner deem these skills useful; thus, Solano is admitted to the
partnership at a...
Please explain the answer.
Goodman, Pinkman, and White formed a partnership on January 1,
2020, and...
Please explain the answer.
Goodman, Pinkman, and White formed a partnership on January 1,
2020, and made capital contributions of $125,000 (Goodman),
$175,000 (Pinkman), and $250,000 (White), respectively. With
respect to the division of income, they agreed to the following:
(1) interest of an amount equal to 10% of the that partner’s
beginning capital balance for the year; (2) annual compensation of
$15,000 to Pinkman; and (3) the remainder of the income or loss to
be split among the partners...
Drake Cushing and Shawn Tadlock started the CT partnership on
January 1, 2014. The business acquired...
Drake Cushing and Shawn Tadlock started the CT partnership on
January 1, 2014. The business acquired $38,920 cash from Cushing
and $100,080 from Tadlock. During 2014, the partnership earned
$66,700 in cash revenues and paid $38,000 for cash expenses.
Cushing withdrew $3,800 cash from the business, and Tadlock
withdrew $4,200 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.
Prepare a balance sheet...