Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $278,000, $314,000, and $208,000, respectively. They anticipate annual profit of $480,000 and are considering the following alternative plans of sharing profits and losses: a. Equally: b. In the ratio of their initial investments; or c. Salary allowances of $131,000 to Conway, $102,000 to Chan, and $77,000 to Scott and interest allowances of 10% on initial investments, with any remaining balance shared equally. Required: 1. Use the schedule to show how a profit of $480,000 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Sharing Plan (a) (b) (c) Calculations Profit Profit Profit Salary allowances. Interest allowances Total salaries and interest allocation Balance of Profit Balance allocated equally Balance of Profit Shares of partners Share to Share to Share to Conway Chan Scott S $ 0 $ 0 $ 0 $ 0 $ 0 Total $ $ $ 480,000 0 0 $ $ 480,000 0 $ 0 0 $ 480,000 0 Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $278,000, $314,000, and $208,000, respectively. They anticipate annual profit of $480,000 and are considering the following alternative plans of sharing profits and losses: a. Equally: b. In the ratio of their initial investments; or c. Salary allowances of $131,000 to Conway, $102,000 to Chan, and $77,000 to Scott and interest allowances of 10% on initial investments, with any remaining balance shared equally. Required: 1. Use the schedule to show how a profit of $480,000 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Sharing Plan (a) (b) (c) Calculations Profit Profit Profit Salary allowances. Interest allowances Total salaries and interest allocation Balance of Profit Balance allocated equally Balance of Profit Shares of partners Share to Share to Share to Conway Chan Scott S $ 0 $ 0 $ 0 $ 0 $ 0 Total $ $ $ 480,000 0 0 $ $ 480,000 0 $ 0 0 $ 480,000 0
Expert Answer:
Answer rating: 100% (QA)
SOLUTION 1 Profit Loss Sharing Plan a Equally Since they share the profit equally each partner will receive onethird of the total profit Profit distri... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
Students also viewed these accounting questions
-
5 I . 1 2 im 4 5 5 7 B SCENARIO & REQUIREMENTS SCENARIO: You have invented the first maintenance-free jet wax called "Jetwax 100." Jetwax 100 can last up to 1 year on any plane surface. In order to...
-
Ben Conway, Ida Chan, and Clair Seghal formed CCS Consulting by making capital contributions of $245,000, $280,000, and $175,000, respectively. They anticipate annual net income of $360,000 and are...
-
Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting by making capital contributions of $245,000, $280,000, and $175,000, respectively. They anticipate annual profit of $360,000 and are...
-
A firm has initial fund of $800. The market rate of return is 12%. The firm has identified good investment opportunities to invest $640 at an average 25 per cent rate of return. How much dividend...
-
The following information is from the 2017 annual report of Weber Corporation, a company that supplies manufactured parts to the household appliance industry. Average total...
-
Data for Campsey Computer Company and its industry averages follow. a. Calculate the indicated ratios for Campsey. b. Construct the DuPont equation for both Campsey and the industry. c. Outline...
-
How does role ambiguity relate to role conflict?
-
The risk-free rate on T-bills recently was 1.23%. If the real rate of interest is estimated to be 0.80%, what was the expected level of inflation?
-
Proceed as in Example 1. Translate the words into an appropriate function. The sum of two nonnegative numbers is 5. Express the sum, s, of the square of one (x) and twice the square of the other (y)...
-
FIT ($1,200.58 - $221.15 = $979.43 taxable)...................... (86.00)* how did you get the answer 86
-
In a recent survey of full time female workers 47 said that they would rather give up some of their salary for more personal time Suppose you select a sample of 100 full time female workers a through...
-
On the USS Enterprise, there is a food synthesizer. The captain of the ship is John Luc Picard. John wants to eat an Indian dish called vindaloo. He orders dish from food synthesizer. Suppose food...
-
You are the scheduler in a machining shop for heavy parts. Four jobs will arrive at your workshop today. All of them need five operations in the same sequence: turning, milling, boring, grinding and...
-
Noora wants to a create a n effective leadership strategy for her business. She has a bakery (named `Have your Cake') which sells designer cakes in Qatar. Her customers include general public buying...
-
2. Explanation of the route that will be taken from point of departure to point of arrival with reference to specific ports or terminals where applicable. The time taken from point of departure to...
-
1. Create a Java class that asks the user for 3 integer values and calculates the following a. the sum of the 3 values b. the sum of the squares of each value c. the square of the sum of the 3 values...
-
Required Information Problem 8-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchased a used machine for $192,000 cash on...
-
Based on the scenario described below, generate all possible association rules with values for confidence, support (for dependent), and lift. Submit your solutions in a Word document (name it...
-
Is the FVTPL category used when management plans to hold investments to maturity or if they plan to actively trade the debt investments?
-
Web Structure Inc. calculated the ratios shown below for 2020 and 2019: Required 1. Identify whether the change in the ratios from 2019 to 2020 is favourable (F) or unfavourable (U). 2. Assess...
-
Buxton Snowboards offers an unlimited warranty on all parts attached to their boards. Which of the following statements is accurate with respect to their warranty liabilities: a. Buxton must offer...
-
Overtime pay for a production department Curry Company employs nine production workers at $7.00 per hour for first shift and a 50 percent overtime premium for any hours worked in excess of 40 per...
-
Understanding inventory cost data Data relevant to Job No. QV1173 are: An analysis of the production data indicate a number of additional items as follows: a. In addition to the 200 good units, there...
-
Identifying errors in accounting for materials Ristlott Company is a small manufactur- ing company using a perpetual inventory system. Recently the company hired an accountant who has not worked for...
Study smarter with the SolutionInn App