Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses on a 3:2 ratio (3/5 to Singer and 2/5 to McMann), what will Singer's share of the income be if the income for the year is $50,000? Oa. $16,000 Ob. $24,000 Oc. $22,000 Od. $23,400

Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses on a 3:2 ratio (3/5 to Singer and 2/5 to McMann), what will Singer's share of the income be if the income for the year is $50,000? Oa. $16,000 Ob. $24,000 Oc. $22,000 Od. $23,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses on a 3:2 ratio, what will McMann's share of the income be if the income for the year is $15,000?
Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses on a 3:2 ratio (3/5 to Singer and 2/5 to McMann), what will McMann's share of the income be if the income for the year is $30,000?
Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses in a 3:2 ratio (3/5 to Singer and 2/5 to McMann), what will Singer's share of the income (loss) be if the net loss for the year is $(10,000)?
Singer and McMann are partners in a business. Singer's original capital was $43,200 and McMann's was $52,800. They agree to salaries of S10,500 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses in a 3:2 ratio, what will Singer's share of the income be if the income for the year is $66,600? Oa. S10,500 Ob. $14,820 Oc. $31,920 Od. S39,960
Carson and Lamb establish a partnership to operate a used-furniture business under the name C & L Furniture. Carson contributes furniture that cost P60,000 and has a fair value of P90,000. Lamb contributes P30,000 cash and delivery equipment that cost P40,000 and has a fair value of P30,000. The partners agree to share profits and losses 60% to Carson and 40% to Lamb. Calculate the peso inequity that will result if the initial contributions of the partners are recorded at cost rather than fair market value. a. 10,000 b. 18,000 c. 20,000 d. 30,000
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Carson and Lamb establish a partnership to operate a used-furniture business under the name C & L Furniture. Carson contributes furniture that cost P60,000 and has a fair value of P90,000. Lamb contributes P30,000 cash and delivery equipment that cost P40,000 and has a fair value of P30,000. The partners agree to share profits and losses 60% to Carson and 40% to Lamb. Calculate the peso inequity that will result if the initial contributions of the partners are recorded at cost rather than fair market value.
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Bruce, Parker, and May formed a partnership. Their capital balances showed the following: Bruce, Capital – P252,000; Parker, Capital – P126,000; May, Capital – P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in partner Bruce’s capital account? Please provide a good accounting form in the solution
Bruce, Parker and May formed a partnership. Their capital balances showed the following: Bruce, Capital P252,000; Parker, Capital- P126,000; May, Capital- P42,000. Their profit and loss ratio are 6:3:1. The partners decide to sell 20 percent of their interest to Violet for a total payment of P120,000. Violet will pay the money directly to the other partners. How much was the bonus debited or credited in paetner Bruce's capital accounts?