Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dallas and Weiss formed a partnership to manage rental properties, by investing S132,000 and $198,000, respectively. During its first year, the partnership recorded profit of

image text in transcribed
image text in transcribed
Dallas and Weiss formed a partnership to manage rental properties, by investing S132,000 and $198,000, respectively. During its first year, the partnership recorded profit of $451,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit Share to Share to Dallas Weiss $ 225,500 $ 225,500 Total 451,000 Profit b. The partners agreed to share profits and losses in proportion to their initial investments Share to Dallas 180 400 Share to Weiss $ 270 500 Total $ 451.000 Loss c. The partners agreed to share profit by allowing a $148,000 per year salary allowance to Dallas, an $78.000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the balance equally. (leave no cell blank. Enter to when the answer is zero.) Share to Dallas Share to Weiss Total 451.000 Profit Salary allowances Interest allowances Total salaries and interest allocation Balance of profit $ 148.000 15,840 $ 163,840 78,000 23,760 $ 109,760 (265.600) $ 185,400 Balance allocated equally: 92.700 92.700 (185400) Balance of profit $ $2.700 Shares of each partner $ 256,540 $ 194,460 $ 543,700 **ed text indicates no response was expected in a celor a four-based calculated

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Accounting Ethics Education Making Ethics Real

Authors: Alberto J. Costa, Margarida M. Pinheiro

1st Edition

1032019999, 9781032019994

More Books

Students also viewed these Accounting questions

Question

What do the customers expect from the organization?

Answered: 1 week ago