Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

of Annie, Peter and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital balance of each partner was $22,000, $33,000 and

image text in transcribedimage text in transcribed of Annie, Peter and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital balance of each partner was $22,000, $33,000 and $55,000 respectively. During 2020, the company earned a net income of $72,000, and Annie withdrew $28,000 while Peter and Jackson withdrew $39,000 and $33,000 respectively a) Calculate the amount of net income each partner will receive based on the following independent scenarios. (i) the earnings are divided equally. (ii) Annie receives 35%, Peter receives 43%, and Jackson receives 22% of the earnings. (iii) the earnings are divided based on the partner's capital balance at the beginning of the year. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Do not use the negative sign. Annie Peter Jackson @ (iii) b) Calculate the ending capital balance of each partner, assuming that method (ii) is used to divide earnings. Annie Beginning Capital Balance Add: Share of net income Subtotal Less: Withdrawals Ending Capital Balance Peter Jackson Take me to the text Annie, Peter and Jackson formed a limited liability partnership in 2019. In 2020, the beginning capital balance of each partner was $22,000, $33,000 and $55,000 respectively. During 2020, the company earned a net income of $72,000, and Annie withdrew $28,000 while Peter and Jackson withdrew $39,000 and $33,000 respectively a) Calculate the amount of net income each partner will receive based on the following independent scenarios. (i) the earnings are divided equally. (ii) Annie receives 35%, Peter receives 43%, and Jackson receives 22% of the earnings. (iii) the earnings are divided based on the partner's capital balance at the beginning of the year. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Do not use the negative sign. Annie Peter Jackson (i) (ii) (iii) b) Calculate the ending capital balance of each partner, assuming that method (ii) is used to divide earnings. Annie Beginning Capital Balance Add: Share of net income Subtotal Less: Withdrawals Peter Jackson

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

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

4th Canadian edition

1118856996, 978-1118856994

More Books

Students also viewed these Accounting questions

Question

Can process costing be used for a service organization? Explain.

Answered: 1 week ago