Guenther firmin both of whom are cpas form a partnership

Assignment Help Accounting Basics
Reference no: EM13599258

Guenther Firmin, both of whom are CPA's, form a partnership, with Guenther investing $100,000 and Firmin, $80,000. They agree to share net income as follows:
1. Salary allowances of $80,000 to Guentheer and $50,000 to Firmin.
2. Interest allowances at 15 percent of beginning capital account balances.
3. Any partnership earnings in excess of the amount required to cover the interest and salary allowances to be divided 60 percent to Guenther and 40 percent to Firmin.

The partnership net income for the first year of operations amounted to $247,000 before interest and salary allowances. Show how this $247,000 should be divided between the two partners. Use a three-column schedule of the type illustrated in Exhibit C-9. List on separate lines the amounts of interests, salaries, and the residual amount divided.

Reference no: EM13599258

Questions Cloud

Discuss why it is necessary for accountants to assume that : discuss why it is necessary for accountants to assume that an economic entity will remain a going concern. if an entity
E-z manufacturing company is a partnership is a partnership : e-z manufacturing company is a partnership is a partnership among yolando gonzales willie todd and linda yeager. the
Should roi be the only gauge a company uses to evaluate : should roi be the only gauge a company uses to evaluate investments? also is it wise for a company to lose money on one
Container shipping inc is contemplating the use of process : container shipping inc. is contemplating the use of process costing to track the cost of its operations. the operation
Guenther firmin both of whom are cpas form a partnership : guenther firmin both of whom are cpas form a partnership with guenther investing 100000 and firmin 80000. they agree to
Adjusting entries are required at the end of the period to : adjusting entries are required at the end of the period to ensure that accrual accounting principles are applied. at
Suppose that melissas permanent residence and business was : melissa recently paid 775 for round-trip airfare to san francisco to attend a business conference for three days.
Douglas manufacturing company has two production : douglas manufacturing company has two production departments cutting and assembly. july 1 inventories are raw materials
On july 1 2010 brower industries inc issued 8000000 of : on july 1 2010 brower industries inc. issued 8000000 of 5-year 11 bonds at an effective interest rate of 12 receiving

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the estimated bad debts

Prepare the estimated bad debts assuming that doubtful accounts are estimated to be (1) 7% of gross accounts receivable and (2) 1% of net sales

  Regular balance in the trial balance columns

Which one of the following accounts has a regular balance in the trial balance columns of the work sheet for manufacturing company operating under the perpetual inventory system?

  Costs-fixed and variable costs

Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units ..

  Why are interviews in fraudulent financial statements and

why are interviews in fraudulent financial statements and tax returns handled differently than interviews in other

  Compute the predetermined overhead rate that was used

problem 5-16 applying overhead in a service company lo2 lo3 lo4 leeds architectural consultants uses a job-order

  Receiving interest to meet liquidity needs

The bonds mature on January 1, 2015. Novotna Company uses the effective-interest method to amortize discount or premium. On January 1, 2012, Novotna Company sold the bonds for $370,726 after receiving interest to meet its liquidity needs.

  Product cost abc company believes that it has an additional

product cost abc company believes that it has an additional 5000 machine hours available in the current facility before

  In may overhead was overapplied by 490 the company adjusts

nbspuxmaiz corporation had only one job in process during may-job x32z-and had no finished goods inventory on may 1.

  Depreciation computations-five methods jon seceda furnace

depreciation computations-five methods jon seceda furnace corp. purchased machinery for 315000 on may 12007. it is

  Interpret the companys quick ratio

Compute the quick ratio for December 31, 2012 and 2011 and interpret the company's quick ratio

  Youre a business consultant providing information and

youre a business consultant providing information and advice to future small business owners. controls are especially

  Income statement of zamora inc

Prepare the operating activities section of the statement of cash flows using the indirect method - The income statement of Zamora Inc

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