Question
PROBLEM 18 (18 pts.) Partners Conner, Tuitt, and Heyward share profits and losses in a 3:4:5 ratio, respectively. Their average capital balances for the quarter
PROBLEM 18 (18 pts.) | |||
Partners Conner, Tuitt, and Heyward share profits and losses in a 3:4:5 ratio, respectively. Their average capital balances for the quarter year were $50,000, $70,000, and $80,000, respectively. | |||
Conner and Heyward each receive a salary of $8,000 each quarter due to their years of experience | |||
in the field. All three partners receive 5% interest on their average capital balance. The net income | |||
for this quarter was $25,100. | |||
Prepare a schedule that shows the distribution of the net income to the partners.
| |||
PROBLEM 19 (8 pts.) | |||
Partners Mendenhall and Bettis share profits and losses in a 3:5 ratio. Lipps is admitted as a new | |||
partner when he invests $40,000 for 30% ownership in the business. The current partners' | |||
capital account balances are: | |||
Mendenhall $45,000 Bettis $65,000 |
|
Prepare the journal entry to admit Lipps to the partnership.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started