Jenkins, Willis, and Trent invested $252,000, $441,000, and $567,000, respectively, in a partnership. During its first year, the firm recorded profit of $639,000. d- The partners agreed to share profit by providing annual salary allowances of $123,000 to Jenkins, $133,000 to Willis, and $68,000 to Trent; allowing 10% interest on the partners’ beginning investments; and sharing the remainder equally. Record to close income summary account.
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Jenkins, Willis, and Trent invested $252,000, $441,000, and $567,000, respectively, in a
d- The partners agreed to share profit by providing annual salary allowances of $123,000 to Jenkins, $133,000 to Willis, and $68,000 to Trent; allowing 10% interest on the partners’ beginning investments; and sharing the remainder equally.
Record to close income summary account.
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- Paddison and Wager have formed a partnership. During their first year of operations, the partnership earned $160,000. Their-profit-and-loss-sharing agreement states that, first, each partner will receive 20% of their capital balances. The second level is based on services, with $10,000 to Paddison and $20,000 to Wager. The remainder then will be shared 4:1 between Paddison and Wager, respectively. Read the requirements. ..... Requirement 1. Calculate the amount of income each partner will receive under their profit-and-loss-sharing agreement assuming Paddison's capital balance is $91,000 and Wager's capital balance is $91,000. (Complete all answer boxes. For amounts that are $o, make sure to enter "0" in the appropriate column.) Paddison Wager Total Net income (Iloss) Requirements Capital allocation: Paddison 1. Calculate the amount of income each partner will receive under their profit-and-loss-sharing agreement assuming Paddison's capital balance is $91,000 and Wager's capital…Wheadon, Davis, and Singer formed a partnership with Wheadon contributing $48,000, Davis contributing $40,000 and Singer contributing $32,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $45,000 for its first year of operation, what amount of income (rounded to the nearest thousand) would be credited to Singer's capital account? $15,000. $18,000. $12,000. $45,000. $32,000.Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. The partners agreed to share net income and loss by giving annual salary allowances of $50,000 to Ramer and $40,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally. 1. Determine each partner’s share given a first-year net income of $98,800. 2. Determine each partner’s share given a first-year net loss of $16,800.
- Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income is allocated under each separate plan for sharing income and loss. 1. The partners did not agree on a plan and therefore share income equally. 2. The partners agreed to share income and loss in proportion to their initial investments. 3. The partners agreed to share income by giving a $50,000 per year salary allowance to Ramer, a $40,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally.On January 1, Johnson invested $105,000 and Tyler invested $210,000 in a newly formed partnership. They agreed to salary allowances of $60,000 per year to Johnson and $40,000 per year to Tyler, plus an interest allowance of 10% based on the partners' capital balances on January 1. Any remaining income (loss) is to be shared equally. When net income is $105,000 for the year, the allocation of income to the partners is _____. $70,500 to Johnson; $61,000 to Tyler $52,500 to Johnson; $52,500 to Tyler $57,250 to Johnson; $47,750 to Tyler None of these choices are correct.Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. The partners agreed to share net income and loss by giving annual salary allowances of $50,000 to Ramer and $40,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally. Note: Enter all allowances as positive values. Enter losses as negative values. Required: Determine each partner's share given a first-year net income of $98,800. Determine each partner's share given a first-year net loss of $16,800. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Ramer and Knox began a partnership by investing $72,000 and $102,000, respectively. The partners agreed to share net income and loss by giving annual salary allowances of $56,000 to Ramer and $44,800 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 $110,800. 2. Determine each partner's share given a first-year net loss of $28,800. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine each partner's share given a first-year net income of $110,800. Allocation of Partnership Income Ramer Knox Total Net Income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners $ 56,000 $ 5,600 44,800 4,800 WIT $ 110,800 100,800 10,000 10,400 400 0…On March 1, Eckert and Kelley formed a partnership. Eckert contributed $75,000 cash, and Kelley contributed land valued at $60,000 and a building valued at $90,000. The partnership also took Kelley's $65,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $30,500, both get an annual interest allowance of 10% of their initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $28,000 cash and Kelley withdrew $21.000 cash. First year income was $82,000. Required: 1a. & 1b. Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. 1c. Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners' withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of December 31. Complete this question by…On March 1, Eckert and Kelley formed a partnership. Eckert contributed $82,500 cash, and Kelley contributed land valued at $60,000 and a building valued at $100,000. The partnership also took Kelley’s $92,500 longterm note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $25,000, both get an annual interest allowance of 10% of their initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $34,000 cash and Kelley withdrew $20,000 cash. After adjusting and closing entries are made to the revenue and expense accounts at December 31, the Income Summary account had a credit balance of $90,000. 1. Prepare journal entries to record (a) the partners’ initial capital investments, (b) their cash withdrawals, and (c) the December 31 closing of both the withdrawals and Income Summary accounts. 2. Determine the balances of the partners’ capital accounts as of…
- A B and C are partners with capital balances of $90,000, $70,000, and $50,000, respectively. The partners agreed to share profits and losses as follows: Salary allowances of $7,000 to A, $8,000 to B and $14,000 to C. Interest allowances of 1096 on beginning of year capital balances Balance to be divided in the ratio of 2:11. If profit for the year 15 $250,000, calculate each partner's share and prepare the appropriate journal entry close the income Summary to the capital accounts Next Page Support | PowerSchool Communit Time left for thisPhox and Ranch have decided to form a partnership. They are in the process of agreeing on how the profits/losses will be divided. Assume that the company is anticipating net income of $80,000 for the first time period. Determine Phox's share of the $80,000 if the partners agree on an interest allowance of 10% on the original investments (Phox invested $20,000 and Ranch invested $30,000), salary allowances of $22,000 to Phox and $33,000 to Ranch, and the remainder equally. Phox Ranch Total Interest Allowances Salary Allowances 22,000 33,000 55,000 Remainder 1:1 _____ ______ ______ Totals ? 80,000 Group of answer choices $20,000 $33,000 $34,000 $46,000Lopez and Gonzales started a partnership with initial cash investments of $700,000 and $650,000, respectively. The articles of partnership stipulate salary allowances of $250,000 to Lopez and $100,000 to Gonzales. In addition, each partner will receive a 12% interest allowance on beginning capital balances, with any remainder divided in the ratio of 5:3, respectively. Required: If the partnership had net income of $666,000, how much profit would be allocated to each partner? Lopez: SO Gonzales: $0
