Erica, Deana & Tara had average capital balances of $350,000, $380,000 and $400,000 respectively during the...
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Erica, Deana & Tara had average capital balances of $350,000, $380,000 and $400,000 respectively during the current fiscal year. The partnership agreement provides for an allowance of 4% on the average capital balances and salary allowances of $85,000 for Erica, $60,000 for Deana and $55,000 for Tara. Any remaining amount or deficit is to be allocated in a ratio of 2:3:4 for Erica, Deana & Tara respectively. Instructions: (a) {b} (c) Assuming net income for the year was $281,200 prepare a schedule indicating the specific elements which make up the division of net income amongst the partners Prepare the appropriate closing entry to reflect the division of income from part (a) Assuming net income for the year was $222,700 prepare a schedule indicating the specific elements which make up the division of net income amongst the partners Problem #3 Karen and Larissa sharing net income in a ratio of 5:3 agree to admit Julie to the partnership. Prior to the admission of Julie, Karen and Larissa had the following capital balances: Karen Larissa $ 570,000 630,000 Instructions: {a} Assuming Julie agreed to contribute 300,000 for a interest in the partnership capital. present the entry to record the admission of Julie to the partnership. {b} Assuming Julie agreed to contribute $ 300,000 for a interest in the partnership capital. 18.00% 24.00% present the entry to record the admission of Julie to the partnership. Problem #4 After discontinuing the ordinary business operations and closing the accounts, the ledger of the partnership of Lauren, Carlos & Doris indicated the following balances: Cash S 32,000 Non-cash assets $ 248,000 Liabilities $ 27,000 Capital - Lauren $ 129,000 Capital - Carlos $ 24,000 Capital - Doris $ 100,000 P & L ratios 2 3 4 Assumptions: the partners sell the non-cash assets for ----------> $ 149,000 and Carlos was last seen boarding a plane for Rio with two "showgirls", Wanda and Trixy (never to be heard from again) Instructions: Prepare a tabular summary of the various steps in liquidation of the partnership. Erica, Deana & Tara had average capital balances of $350,000, $380,000 and $400,000 respectively during the current fiscal year. The partnership agreement provides for an allowance of 4% on the average capital balances and salary allowances of $85,000 for Erica, $60,000 for Deana and $55,000 for Tara. Any remaining amount or deficit is to be allocated in a ratio of 2:3:4 for Erica, Deana & Tara respectively. Instructions: (a) {b} (c) Assuming net income for the year was $281,200 prepare a schedule indicating the specific elements which make up the division of net income amongst the partners Prepare the appropriate closing entry to reflect the division of income from part (a) Assuming net income for the year was $222,700 prepare a schedule indicating the specific elements which make up the division of net income amongst the partners Problem #3 Karen and Larissa sharing net income in a ratio of 5:3 agree to admit Julie to the partnership. Prior to the admission of Julie, Karen and Larissa had the following capital balances: Karen Larissa $ 570,000 630,000 Instructions: {a} Assuming Julie agreed to contribute 300,000 for a interest in the partnership capital. present the entry to record the admission of Julie to the partnership. {b} Assuming Julie agreed to contribute $ 300,000 for a interest in the partnership capital. 18.00% 24.00% present the entry to record the admission of Julie to the partnership. Problem #4 After discontinuing the ordinary business operations and closing the accounts, the ledger of the partnership of Lauren, Carlos & Doris indicated the following balances: Cash S 32,000 Non-cash assets $ 248,000 Liabilities $ 27,000 Capital - Lauren $ 129,000 Capital - Carlos $ 24,000 Capital - Doris $ 100,000 P & L ratios 2 3 4 Assumptions: the partners sell the non-cash assets for ----------> $ 149,000 and Carlos was last seen boarding a plane for Rio with two "showgirls", Wanda and Trixy (never to be heard from again) Instructions: Prepare a tabular summary of the various steps in liquidation of the partnership.
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Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
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