................
10 poinm eBook Print References Saved Help Gray, Stone, and Lawson open an accounting practice on January 1, 2016, in San Diego, California, to be operated as a partnership. Gray and Stone will serve as the senior partners because of their years of experience. To establish the business, Gray, Stone, and Lawson contribute cash and other properties valued at $440,000, $410,000, and $205,000, respectively. An articles of partnership agreement is drawn up. It has the following stipulations: - Personal drawings are allowed annually up to an amount equal to 10 percent ofthe beginning capital balance for the year. - Prots and losses are allocated according to the following plan: 1. A salary allowance is credited to each partner in an amount equal to $8 per billable hour worked by that individual during the year 2. Interest is credited to the partners' capital accounts at the rate of12 percent ofthe average monthly balance for the year (computed without regard for current income or drawings). 3. An annual bonus is to be credited to Gray and Stone. Each bonus is to be 10 percent of net income after subtracting the bonus, the salary allowance, and the interest. Also included in the agreement is the provision that there will be no bonus if there is a net loss or if salary and interest result in a negative remainder of net income to be distributed. 4. Any remaining partnership prot or loss is to be divided evenly among all partners. Because of financial shortfalls encountered in getting the business started, Gray invests an additional $9,500 on May 1, 2016. On January 1, 2017, the partners allow Monet to buy into the partnership. Monet contributes cash directly to the business in an amount equal to a 20 percent interest in the book value of the partnership property subsequent to this contribution. The partnership agreement as to splitting prots and losses is not altered upon Monet's entrance into the rm; the general provisions continue to be applicable. The billable hours for the partners during the first three years of operation follow: 2016 2017 2018 Gray 2,010 4,100 2,130 Stone 1,670 1,800 1,870 Lawson 3,600 1,610 1,600 Monet 0 1,420 1,900 p 14_29 0 Saved Help 1 The partnership reports net income for 2016 through 2018 as follows: 2016 $ 101,000 2017 (43,600) 10 2013 225,000 points Each partner withdraws the maximum allowable amount each year. eBook Print a. Determine the allocation of income for each of these three years. R f b. Prepare in appropriate form a statement of partners' capital for the year ending December 31, 2018. e erences Complete this question by entering your answers in the tabs below. Req A 2016 Req A 2017 Req A 2018 Req B Determine the allocation of income for 2016. (Loss amounts should be indicated with a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar amounts.) Salary allowance Interest Remainder to allocate Income allocation P 14-29 0 Saved 1 The partnership reports net income for 2016 through 2018 as follows: 2016 5 101,000 2017 (43,600) 10 2013 225,000 points Each partner withdraws the maximum allowable amount each year. eBaok Print a. Determine the allocation of income for each of these three years. R f b. Prepare in appropriate form a statement of partners' capital for the year ending December 31, 2018. e erences Complete this question by entering your answers in the tabs below. Req A 2016 Req A 2017 Req A 2018 Req B Determine the allocation of income for 2017. (Loss amounts should be indicated with a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar amounts.) Salary allowance Remainder to allocate Income allocation 10 points eBook Print References Saved HI The partnership reports net income for 2016 through 2018 as follows: 2016 $ 101,000 2017 (43,600) 2018 225,000 [ Each partner withdraws the maximum allowable amount each year. a. Determine the allocation of income for each of these three years. b. Prepare in appropriate form a statement of partners' capital for the year ending December 31, 2018. Complete this question by entering your answers in the tabs below. Req A 2016 Req A 2017 Req A 2018 Determine the allocation of income for 2018. (Do not round intermediate calculations. Round your answers to the nearest dollar amounts.) Salary allowance Interest Remaining net income Income allocation P 14-29 0 saved 1 The partnership reports net income for 2016 through 2018 as follows: 2016 s 101.000 2017 (43,600) 10 2013 225,000 points Each partner withdraws the maximum allowable amount each year. eBook Print a. Determine the allocation of income for each of these three years. R f b. Prepare in appropriate form a statement of partners' capital for the year ending December 31, 2018. e erences Complete this question by entering your answers in the tabs below. Req A 2016 Req A 2017 Req A 2018 Prepare in appropriate form a statement of partners' capital for the year ending December 31, 2018. (Amounts to be deducted should be indicated with minus sign. Do not round intermediate calculations. Round your answers to nearest dollar amounts.) Beginning balances Prof't allocation Ending Balances
