Allocating partnership income

Assignment Help Accounting Basics
Reference no: EM1358416

Kara Ries, Tammy Bax, and Joe Thomas invested 80,000 112,000 and 128,000 respectively in a partnership.

During its first year, the firm earned 249,000. Prepare the entry to close the firms income summary accounts as of its December 31 year end and to allocate the 249,000 net income to partners under each of the following separate assumptions:

- The partners have no agreement on the method of sharing income and loss

- They agree to share income and loss in the ratio of their beginning capital investment and agree to share income and loss by providing annual salary allowances of 60,000 to Bax, and 80,000 to Thomas

- Grating 10% interest on the partner's beginning capital investments; and remainder equally

Reference no: EM1358416

Questions Cloud

Promoting the medication of children for adhd : What is the role of managed-care companies and insurers in promoting the medication of children for ADHD?
Differentiate across various forms of business combinations : Define the term business combination and differentiate across various forms of business combinations. Describe when consolidation of financial information into a single set of statements is necessary.
Journalizing partnership formation : Angela Moss and Autumn Barber organize a partnership on January 1. Moss's intial net investment is 75,000 consisting of cash 17,500, equipment 82,500 and note payable reflecting a bank loan for a new business 25,000. Barber's initial investment is..
Attention deficit hyperactive disorder : Attention Deficit Hyperactive Disorder and Conduct Disorder are behavior disorders that affect children's lives both socially and cognitively since they have difficulty understanding social rules.
Allocating partnership income : During its first year, the firm earned 249,000. Prepare the entry to close the firms income summary accounts as of its December 31 year end and to allocate the 249,000 net income to partners under each of the following separate assumptions:
Elucidiating effect of demographics on public revenue : explaining the effect of demographics on public revenue sources.
Create logic for program to count readers by genders : Create the logic for a program that would produce a count of readers by gender within age group - that is, under 20 females, under 20 males, etc.
Prepare journal entry for autumn company : Prepare the journal entry to record Autumn Company's issuance of 63,000 share of no-par value common stock assuming the shares;
Development of social skills : What reasons do you think Marcia would give you when asked why she dropped out of school or left her parent's?? home? How does having a behavior disorder relate to the development of social skills?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Detailed examination of outstanding accounts

A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the:

  Fundamental accounting equation

What happens to the fundamental accounting equation when the sole proprietor of a business invests more cash in it

  Compute total cost of securities purchased

Someone purchased 320 shares of DNA at 35 3/4 from broker. He charges 1.6% for the transaction. Odd lot carry 1/8 of a dollar brokerage differential.

  Money market hedge

Explain the steps to take for a money market hedge. You need to describe clearly the amounts which are related to the actions to take.

  Recording journal entry for issuance of stock

Prepare the journal entry to record Zende Company's issuance of 75,000 shares of $5 par value common stock assuming the shares sell for

  Evaluate prepaid expense and unearned revenue

Amounts paid on June 30 for a 1-year insurance policy, Professional fees earned but not billed as of June 30

  Sale of equipment-fixed assets journal entries

Beka Company owns equipment that cost $50,000 when purchased on January 1, 2005. Prepare Beka Company's journal entries to record the sale of the equipment in these four independent situations.

  Speculate foreign currency within fiscal year

The transaction gain or loss to be recognized over the term of a forward exchange contract entered into to speculate in a foreign currency within a fiscal year is measured by the difference between the:

  Machine sale-book value-journal entry

On January 1, Year 1, Jayco purchased a machine for $6,000. It had an estimated salvage value of $1,200 and a life of six years. The straight-line method of depreciation was used. At, midyear in Year 4, Jayco sold the machine for $4,500 cash.

  Devs autoparts company-journal entries

On August 31, 2008, Devs Autoparts Company sold $8,000 worth of parts to Metro Repair Company. The terms of the sale were n/90. Devs receivable policy is to start charging interest of 9% (annually) on all balances over 90 days. Interest is accrued..

  Journal entries-percentage of completion method

Record the journal entries for each year using the % of completion method. Show the partial accounts on the December 31 balance sheet for each year. Show the January 1 to Dec 31 Income statement for each year.

  Discuss the below quotation

BUACC2606 Financial Accounting,  Discuss the above quotation, particularly as it applies to non-current assets. Do you consider Chamber's assertion is justified?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd