Question

Ramer and Knox began a partnership by investing $76,000 and $106,000, respectively. The partners agreed to...

Ramer and Knox began a partnership by investing $76,000 and $106,000, respectively. The partners agreed to share net income and loss by giving annual salary allowances of $58,000 to Ramer and $46,400 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Required: 1. Determine each partner's share given a first-year net income of $114,800. 2. Determine each partner's share given a first-year net loss of $32,800.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. 2. The partners agreed...
Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. 2. The partners agreed to share income and loss in proportion to their initial investments.  Net income is $160,000. (Do not round intermediate calculations. Fraction to Allocate Ramer Ramer's Share of Income Fraction to Allocate Knox Knox's Share of Income Total Income Allocated
Syawla and Reven began a partnership by investing $120,000 and $230,000, respectively. During its first year...
Syawla and Reven began a partnership by investing $120,000 and $230,000, respectively. During its first year ended Dec 31, 2016, the partnership had a $99,000 net loss. The partners have agreed to share income and loss by granting a $12,000 per month salary allowance to Syawla, a $6,000 per month salary allowance to Reven, 10% interest on their initial capital investments, and the remaining balance shared according to their initial capital balances. Required: Prepare calculations showing how the $99,000 loss...
Dividing Partnership Net Loss Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership...
Dividing Partnership Net Loss Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership agreement provided for salary allowances of $52,000 and $46,000, 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.
Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following...
Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following information applies to the questions displayed below.] Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $72,900, $283,500, and $453,600, respectively. They predict annual partnership net income of $481,500 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of...
Dividing Partnership Net Loss Leigh Meadows and Byron Leef formed a partnership in which the partnership...
Dividing Partnership Net Loss Leigh Meadows and Byron Leef formed a partnership in which the partnership agreement provided for salary allowances of $44,000 and $39,000, respectively. Determine the division of a $22,000 net loss for the current year, assuming remaining income or losses are shared equally by the two partners. Use the minus sign to indicate any deductions or deficiencies. Leigh Meadows Byron Leef Total Salary Allowance $ $ $ Remainder $ $ $ Net Loss $ $ $
Q-2: Jahangir, Zain, and Zohaib invested Rs.40,000, Rs.56,000, and Rs.64,000, respectively, in a partnership. During its...
Q-2: Jahangir, Zain, and Zohaib invested Rs.40,000, Rs.56,000, and Rs.64,000, respectively, in a partnership. During its first calendar year, the firm earned Rs.124,500. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the Rs.124,500 net income to the partners under each of the following separate assumptions: The partners (1) have no agreement on the method of sharing income and loss; (2) agreed to share income and loss in the...
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that...
Dividing Partnership Income Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $174,000 and that Greene is to invest $58,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are being considered: Equal division. In the ratio of original investments. In the ratio of time devoted to the business. Interest of 5% on original investments and the...
Pac-link Technologies is a partnership owned and operated by Tom Kennedy and Mike McConnell. To recognize...
Pac-link Technologies is a partnership owned and operated by Tom Kennedy and Mike McConnell. To recognize the fact that the partners have invested significantly different amounts of capital and that Tom works full time, while Mike works only part time, the partnership agreement states that the net income will be allocated as follows: An interest allowance of 6% of each partner's beginning capital balance plus a salary allowance of $40 per hour worked. Any remaining income or loss after calculation...
Q-2: Jahangir, Zain, and Zohaib invested Rs.40,000, Rs.56,000, and Rs.64,000, respectively, in a partnership. During its...
Q-2: Jahangir, Zain, and Zohaib invested Rs.40,000, Rs.56,000, and Rs.64,000, respectively, in a partnership. During its first calendar year, the firm earned Rs.124,500. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the Rs.124,500 net income to the partners under each of the following separate assumptions: The partners (1) have no agreement on the method of sharing income and loss; (2) agreed to share income and loss in the...
1.) Tyler Hawes and Piper Albright formed a partnership, investing $65,000 and $195,000, respectively. Determine their...
1.) Tyler Hawes and Piper Albright formed a partnership, investing $65,000 and $195,000, respectively. Determine their participation in the year's net income of $285,000 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 $38,000 and $47,000, respectively, and the balance divided equally. Allowance of interest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT