Home / Questions / Paco and Kate invested $99000 and $126,000 respectively in a partnership they began
Paco and Kate invested $99,000 and $126,000, respectively, in a partnership they began one year ago. Assuming the partnership earned $120,000 during the current year, compute the share of the net income each partner should receive under each of these independent assumptions.
|
|
|
Paco’s Share |
Kate’s Share |
|
1. |
The partnership contract specifies salary allowances of $45,000 to Paco and $60,000 to Kate, and any balance shared equally. |
$ |
$ |
|
2. |
The partnership contract specifies salary allowances of $45,000 to Paco and $60,000 to Kate with interest allowance of 10% on the partners’ beginning year capital balance and any remaining balance shared equally. |
$___________________ |
$__________________ |
100. Holden, Phillips, and Rogers are partners with beginning-year capital balances of $120,000, $60,000, and $60,000, respectively. Partnership net income for the year is $84,000. Make the necessary journal entry to close Income Summary to the capital accounts if:
a. Partners agree to divide income based on their beginning-year capital balances.
b. Partners agree to divide income based on the ratio of 5:3:2 (Holden:Phillips:Rogers), respectively.
c. Partnership agreement is silent as to division of income and loss.
101. Khalid, Dina, and James are partners with beginning-year capital balances of $400,000, $320,000, and $160,000, respectively. The partners agreed to share income and loss as follows: salary of $30,000 to Khalid; $50,000 to Dina; and $55,000 to James and an interest allowance of 10% on beginning-of-year capital balances. Any remaining balance is to be divided equally. If partnership net income for the year is $190,000, determine each partner's share and make the appropriate journal entry to close the Income Summary to the capital accounts.
102. Marquis and Bose agree to accept Sherman into their partnership. Sherman will contribute $25,000 in cash. Prepare the journal entry to record this transaction.
Jan 28 2020 View more View Less
The three stages of target marketing are market segmentation, market targeting, and_________________________What are the 3 stages of target marketing?
Nov 10 2017Which one of the following is not a reason a company decides to enter foreign markets?(i) To spread business risk across a wider geographic market base.(ii) To capitalize...
Jul 09 2021answer given before for help was incorrectConsider the following information: Rate of Return if State Occurs State of Economy Boom Probability of State of Economy 0.10 S...
Aug 13 2020BUS 190Homework 6 Solutions1. Tom’s Inc. makes two salsa products: Western Foods salsa and Mexico City salsa. Essentially, the two products have different blends of wh...
Jul 23 2020Discovery of Iridium in the K-Pg Boundary LayerIn the late 1970s, geologist Walter Alvarez was investigating the composition of the K-Pg boundary layer in different parts...
Jun 05 2021First Senate President of the Philippines: A. Manuel L. Quezon B. Manuel Roxas C. Gil Puyat D. Sergio Osmena E. Diosdado Macapaga
Jul 10 2021A particle slides along the hyperbolic paraboloidal surface z = xy/2b such that x = −(b2 − y21/2, y = bsin kt2), where h, b, and k are constants. Derive expressions for t...
Jun 18 2020your financial advisor recommends buying a 10 year bond with a face value of $1,000 and an annual coupon of $80. the current interest rate is 7%. what might you expect to...
Aug 21 2021Tony Begay at Saguaro Funds Tony Begay a currency trader for Chicagobased Saguaro Funds uses the following futures quotes on the British pound a to speculate on the ...
Feb 14 2020Given the channel features or objectives below. For each part, tell which line code(s) is (are) the best choice(s).a. The channel frequency response has a null at ƒ= 0 Hz...
Jul 31 2020