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Only need help with the last question. Please help! Stephanie Barnes and Layla Taylor formed a partnership Design Pros Imaging, last May Each person contributed
Only need help with the last question. Please help!
Stephanie Barnes and Layla Taylor formed a partnership Design Pros Imaging, last May Each person contributed assets to the business and both partners work full-time in the business. The business made a profit in the first year, which ended Dec 31, but Layla and Stephanie are still discussing how to divide the net income equitably The following table shows some options that their accountant worked up Partner Option Taylor Barnes A $28 320 $42,480 . $47,200 $23,600 $6,660 $9,300 32,904 21,936 $39,564 $31, 236 D $32,000 $28,000 6,660 9,300 1290 3,870 $37370 $33,430 32,904 21,936 $39,564 $31,236 D. $32,000 $28,000 6,660 9,300 -1,290 3,870 $37,370 $33,430 E $32,000 $28,000 1,620 4,590 4,590 $36,590 $34,210 F. $35,400 $35,400 G. $6,660 $9,300 10,620 11,055 33,165 $28,335 $42,465 Dividing Partnership Income Unfortunately, the accountant's notes about each option have been lost Stephanie remembers that the accountant proposed paying 4% interest yearly on each partner's capital investment at the beginning of the year Layla asked the accountant to include at least one bonus option. The accountant used last year's results to show how the net income would have been divided under each option Barnes $232,500 $28,000 Taylor $166,500 $32,000 1 What is each partner's capital investment? 2. What is each partner's proposed salary amount? Points 14/4 Option 3. What was the net income for Design Pros Imaging last year? $70,800 4 Which option shows how the net income will be split if the partners do not reach an agreement? 6 In Option D what do the negative amounts represent? Excess of allowances over Income. 6 What is the last item in Option that is divided between the partners? Remaining net income. Points 4/4 Feedback Another designet, Chad Mineart joined the partnership on January 1, the all assets were adjusted to their market values. He s hoping to work in the business next year. The journal entries to record tus admission follow IMAGES JOURNAL ACCOUNTING EQUATION CREDIT POSTER DESCRIPTION ASSETS LABILITIES EQUITY DEBIT 16,650.00 DAY Lan 1 Taylor, Capital Stephanie Barnes, Capital Oud Minat, Capital 54,875.00 51525.00 1 45,000.00 45.000.00 Chad Mineant, Gapital 1. How was Chad admitted to the partnership? Check all that apply 1. How was Chad me to the ponership? Check all tatay Participation through Recepto partner equity Contbuton of service and investment Pachetrom the resting partners Income redistribution to partners Points 2. What was the sale price at the equity that Chad purchased? cannot be determined. V Assume that Lanyia and Stephanie lave decided to adopt Option on the Deson Pros Imaging panel They are wondering how the division of net income under Option will change with the new partner. Assume that income is the same as the prior year Chad will not have a salary aliowance the first year, but any remaining net income will be shared equally among the partners Using last year's data as an example, extend option to allow for Chad's participation. What would Chad's share of the net income be? $5300 X Points 1/2 Step by Step Solution
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