Question
On December 31, 2014, LBM Partnerships accounts show the following. Answer the following questions under the different scenarios. Partner Drawings Capital Lisa $23,000 $48,000 Bart
On December 31, 2014, LBM Partnerships accounts show the following. Answer the following questions under the different scenarios.
| Partner | Drawings | Capital |
| Lisa | $23,000 | $48,000 |
| Bart | 14,000 | 30,000 |
| Maggie | 10,000 | 25,000 |
Scenario1: Net income for the year is $30,000. Income is shared 60% to Lisa, 30% to Bart, and 10% to Maggie. How much is each partners share of the income?
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Scenario 2: Net income was $60,000 for the year. Lisa and Bart are each given a $15,000 salary allowance. The remainder is shared equally. Prepare a schedule showing the division of net income.
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| Lisa | Bart | Maggie | Total |
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| Remaining income |
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| Total division of net income |
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Scenario 3: Net income was $24,000 for the year. Each partner is given a 10% interest on beginning capital balances. Lisa is given a $10,000 salary allowance and $5,000 is given to both Bart and Maggie. The remainder is shared equally. Prepare a schedule showing the division of net income.
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| Lisa | Bart | Maggie | Total |
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| Interest allowance on capital |
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| Total salaries and interest |
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| Remaining deficiency |
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| Total division of net income |
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Prepare a partners' capital statement for the year under scenario 3.
| Partners Capital Statement | ||||
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| Lisa | Bart | Maggie | Total |
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Authors: Just Visualize It, The Quality Guy
1st Edition
1726628981, 978-1726628983
