Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $60,000 and $180,000, respectively. Determine their participation in the year's net income of $275,000 under each of the following independent assumptions: a. No agreement concerning division of net income. 5. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $48,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $38,000 and $48,000, respectively, and the remainder divided equally. Hawes Albright (a) 137,500 137,500 (b) 72,500 x (c) $ 113,000 x 3,600 x (d) $ (e) $ Feedback respectively. Austin Neel is to be admitted to the partnership, contributing $71,000 cash to the partnership, for which he is to receive an ownership equity of $92,000. All partners share equally in income. a. Journalize the entry to record the admission of Neel, who is to receive a bonus of $21,000. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash Brad Paulson, Capital Drew Webster, Capital Austin Neel, Capital 71,000 X 2.500 X 10.500 x Feedback Check My Work a. Record the cash contribution and increase the new partner's equity account for the ownership equity received. Reduce the old partners' equity accounts for the transfer of ownership b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Brad Paulson 106,000 x Drew Webster Austin Neel Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $60,000 and $180,000, respectively. Determine their participation in the year's net income of $275,000 under each of the following independent assumptions: a. No agreement concerning division of net income. 5. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $48,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $38,000 and $48,000, respectively, and the remainder divided equally. Hawes Albright (a) 137,500 137,500 (b) 72,500 x (c) $ 113,000 x 3,600 x (d) $ Feedback Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $60,000 and $180,000, respectively. Determine their participation in the year's net income of $275,000 under each of the following independent assumptions: a. No agreement concerning division of net income. 5. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $48,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $38,000 and $48,000, respectively, and the remainder divided equally. Hawes Albright (a) 137,500 137,500 (b) 72,500 x (c) $ 113,000 x 3,600 x (d) $ (e) $ Feedback respectively. Austin Neel is to be admitted to the partnership, contributing $71,000 cash to the partnership, for which he is to receive an ownership equity of $92,000. All partners share equally in income. a. Journalize the entry to record the admission of Neel, who is to receive a bonus of $21,000. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash Brad Paulson, Capital Drew Webster, Capital Austin Neel, Capital 71,000 X 2.500 X 10.500 x Feedback Check My Work a. Record the cash contribution and increase the new partner's equity account for the ownership equity received. Reduce the old partners' equity accounts for the transfer of ownership b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Brad Paulson 106,000 x Drew Webster Austin Neel Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $60,000 and $180,000, respectively. Determine their participation in the year's net income of $275,000 under each of the following independent assumptions: a. No agreement concerning division of net income. 5. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $38,000 and $48,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $38,000 and $48,000, respectively, and the remainder divided equally. Hawes Albright (a) 137,500 137,500 (b) 72,500 x (c) $ 113,000 x 3,600 x (d) $ Feedback
