Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that there are three sisters in a partnership, A, B, and C. Partner C provides services to the partnership and is entitled to a

Assume that there are three sisters in a partnership, A, B, and C. Partner C provides services to the partnership and is entitled to a salary of $75,000. In addition, assume that the Partnership Agreement provides for an interest allocation of 6% based on the weighted-average Capital Account balance during the year. There is a balance in each Capital Account for Partners A and B of $750,000 for the full year. Partner C, however, was admitted to the partnership for an initial capital contribution of $500,000 on April 30 Finally, assume that the partnership revenues less expenses (other than salary to Partner C and interest on capital balances) are $658,000 and that the Partnership Agreement provides for a sharing ratio of 35%/35%/30% for Partners A, B, and C, respectively. Prepare a schedule for the allocation of profit to the partners.

Display keyboard shortcuts for Rich Content Editor

Step by Step Solution

3.43 Rating (143 Votes )

There are 3 Steps involved in it

Step: 1

Solution Solution partnes A parothes B Paotney C Total Net income before ded... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions

Question

How is ????0 different from ????0?

Answered: 1 week ago