Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $204,000 and that Shannon is to invest $68,000. Blac is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 6% on original investments and the remainder equally. e. Interest of 6% on original investments, salary allowances of $45,000 to Black and $75,000 to Shannon, and the remainder equally. f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $172,000 and (2) net income of $235,000. Round answers to the nearest whole dollar. (1) (2) $172,000 $235,000 Plan Black Shannon Black Shannon a. b. C. d. e. f. 00

Black and Shannon have decided to form a partnership. They have agreed that Black is to invest $204,000 and that Shannon is to invest $68,000. Blac is to devote one-half time to the business, and Shannon is to devote full time. The following plans for the division of income are being considered: a. Equal division. b. In the ratio of original investments. c. In the ratio of time devoted to the business. d. Interest of 6% on original investments and the remainder equally. e. Interest of 6% on original investments, salary allowances of $45,000 to Black and $75,000 to Shannon, and the remainder equally. f. Plan (e), except that Shannon is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances. Required: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $172,000 and (2) net income of $235,000. Round answers to the nearest whole dollar. (1) (2) $172,000 $235,000 Plan Black Shannon Black Shannon a. b. C. d. e. f. 00

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 50P

See similar textbooks

Similar questions

Required information Important Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. [The following information applies to the questions displayed below.] ** Ramer and Knox began a partnership by investing $68,000 and $102,000, respectively. During its first year, the partnership earned $205,000. Prepare calculations showing how the $205,000 income is allocated under each separate plan for sharing Income and loss. Important Notel Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. 1. The partners did not agree on a plan, and therefore share Income equally Ramer Knox Show Transcribed Text
CengageNOW2| Online teachin X Erie Community College : Home x Student Home ps://v2.cengagenow.com/iln/takeAssignment/takeAssignmentMain.do?invoker%=&takeAssignmentSessionLocator... Calculator Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $50,000. What amount of loss on realization should be allocated to Alpha? Oa. $50,000 Ob. $30,000 Oc. $60,000 Od. $20,000
4:31 P + A2C3.pdf 团: 1. Red, white, and Blue form a partnership on May 1,2013. They agree that red will contribute office equipment with a total fair value of P40,000; white will contribute delivery equipment with a fair value of P80,000; and blue will contribute cash. If blue want one third interest in the capital and profits, he should contribute the cash of? 2. Elsa and Perla form a new partnership. Elsa invests P300,000 in cash for her 60 percent interest in the capital and profits of the business. Perla contributes Land that fair market value of P70,000, and a building that has tax basis ofP50,000 and a fair market value of an original cost of P40,000 and a P90,000. The building is subject to a P40,000 mortgage that the partnership will assume. What amount of cash should Perla contribute? Reyes and Santos drafted a partnership agreement that list the following assets contributed at the partnership formation: Contributed by Reyes Santos Cash P200,000 P300,000 Inventory 150,000…
Important Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. Moss and Barber organize a partnership on January 1. Moss's initial net investment is $79,000, consisting of cash ($21,000), equipment ($73,000), and a note payable reflecting a bank loan for the new business ($15,000). Barber's initial investment is cash of $35,000. Prepare journal entries to record (1) Moss's investment and (2) Barber's investment. No A B Transaction (1) (2) Cash Equipment Note payable Moss, Capital Cash Barber, Capital Answer is not complete. General Journal 0000 30 Debit Credit
Required information Important Notel Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. The following information applies to the questions displayed below] 5 Ramer and Knox began a partnership by investing $68,000 and $102,000, respectively. During its first year, the partnership earned $205,000. Prepare calculations showing how the $205,000 income is allocated under each separate plan for sharing income and loss. O Important Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. 2. The partners agreed to share income and loss in proportion to their initial investments. Net Income is $205,000. (Do not round Intermediate calculations.) A $68.000/5170 000 Fraction to Allocate Ramers Share Fraction to Allocate Knox's Share of Total Income Allocated Show Transcribed Text I
Can you help me answer this problem with a detailed solution so I can be able to understand it and learn further how to solve similar problems as this one? I'd prefer it if you'd present it with an excel and give some explanations to accompany it. Thank you so much in advance. Your help is greatly appreciated. PROBLEM: Alpha, Beta and Gamma are partners who have capital balances of $480,000, $500,000, and $180,000 respectively. P/L is distributed in the ratio of 4:2:1. Beta received $260,000 as a result of liquidating the partnership when 60% of the non cash assets of the partnership is realized. The partnership has total assets totalling to $500,000 including $50,000 cash before liquidation. The partnership also incurred $35,000 liquidation expenses and withheld $28,000 for the unpaid liabilities of the partnership. What is the loss on realization of noncash assets? A. 632,000 B. 875,000 C. 855,000 D. 612,000
(see attached image, please answer it based on your knowledge, thank you!) The JR Asia Consultancy Firm is owned and managed by two CPAS, Joffre and Ric. Initial investments of the partners are: Joffre P800,000 and Ric P400,000. Two options on how to distribute the profit are being considered by the partners: Option 1: Distribute profit based on capital contributions after a 20% bonus is given to Ric based on profit for distribution. Option 2: Distribute profit by giving them a 10% interest on contributions, a salary allowance of P100,000 to Ric as managing partner, and the remaining profit to be divided equally between them. Due to the disparity in the contributions, the partners want to find out if it will be better to use option 2. The objective is to find a way of compensating fairly the partners considering not only asset contribution but als0 contribution in the form of time and expertise. a. Prepare two tables to show the profit distribution under two option plans if profits at…
E12-15 Nan Fuentes has been operating an apartment-locator service as a prietorship. She and Misti Fulmer have decided to form a partnershi Fuentes's investment consists of cash, $8,000; accounts receivabie $10,000; furniture, $1,000; a building, $55,000; and a note payable. $10,000. To determine Funtes's equity in the partnership, she and Fulmer hime an independent appraiser. The appraiser values all the assets and liabi ties at their book value except the building, which has a current marka value of $90,000. Also there are accounts payable of $3,000. Requirement Make the entry on the partnership books to record Fuentes's investment (pр. 600-601)
Instructions: Please answer it with complete solution. Thank you so much!! Rachelle, Patrick, and Lorreyn formed the RPL Professional Partnership on April 1, 20X2, by contributing capital. They agreed that Lorreyn would receive P20,000 as manager of the firm, and the remainder will be divided according to the profit ratio of 34%, 44%, 22%, respectively. At the end of the month, the company had a net loss of P900,000. Discuss how the loss shall be distributed in no more than five (5) sentences.
The students in ACCT 450 decide to form apartnership in order to start a business that researchesmergers and acquisitions and sells their analysis toinvestors via a monthly report . Further , they decide*to split the responsibilities of the partnership into*three different areas as follows :". One third of the students invest the majority ofthe capital needed to get the business started ,but do not want to be involved on the daily*operations .One third of the students have extensive*experience in analyzing mergers andacquisitions and plan to perform the majority*of the daily work..The remaining third of the students believe*they provide the most value to the newpartnership by marketing the monthly report totheir investment contacts .RequiredWrite a memo to the other members of ACCT 450proposing two different ways the partnership canfairly allocate the profits of the partnership among*the three different groups of partners identified.above . Feel free to be creative , but please make…
4. On July 1, 2020, Kyla and Niza formed Fashion and Style Partnership organized to train young fashion designers and help them gain confidence in their career with an initial investment of P1,000,000 and P2,000,000, respectively. Kyla is appointed as the managing partner. The articles of co-partnership provides that profit or loss shall be distributed accordingly: o 30% interest on original capital contribution ratio o Monthly salary of P20,000 and P10,000 respectively for Kyla and Niza. o Kyla shall be entitled to bonus equivalent to 20% of net income after interest, salary and bonus. o The remainder shall be distributed in the ratio of 3:2 for Kyla and Niza respectively For the year ended December 31, 2020, the partnership reported net income of P750,000. a. What is the share of Kyla in the net income of the partnership? b. What is the share of Niza in the net income of the partnership assuming the bonus is based on net income after interest and salary but before bonus?
4:31 + A2C3.pdf 12. Candy and Dandy have just formed a partnership. Candy contributed cash of P126,00 and computer equipment that cost P54,000. The fair value of the computer is P36,000. Candy has a notes payable on the computer of P12,000 to be assumed by the partnership. Candy is to have 60% capital interest in the partnership. Dandy contributed only P90,000. The profit and loss ratio of the partners agreed is equally. Candy should make an additional investment(withdrawal)of; a. P96,000 b. P84,000 c. P(76,800) d. P(15,000) Question 13 and 14 are based on the following data: On June 1, 2013, May and Nora formed a partnership. May is to invest assets at fair values. She is to transfer her liabilities is to contribute sufficient cash to bring her total capital to P210,000 which is 70% of the total capital of the partnership. Details regarding the book values of May's business assets and liabilities and their corresponding fair values are: Book Values Fair Values Accounts Receivable…