Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem #3 On October 1, 2016, Alima, Deyan and Lori formed A, D and L partnership. Alima contributed $21,000; Deyan, $35,000; and Lori, $44,000. Alima

image text in transcribed
Problem #3 On October 1, 2016, Alima, Deyan and Lori formed A, D and L partnership. Alima contributed $21,000; Deyan, $35,000; and Lori, $44,000. Alima will manage the store; Deyan will work in the store three-quarters of the time; and Lori will not work in the business Compute the partner's shares of profits and loses under each of the following plans and record the journal entry allocating net loss or net income: (20 points) Net loss for the year ended September 30, 2017, is $42,000, and the partnership agreement allocates 45% of profits to Alima, 35% to Deyan, and 20% to Lori. The agreement does not discuss sharing of losses a. Net income for the year ended September 30, 2017, is $97,000. The first allocation is based on a 10% of beginning capital balances. The next is based salary allowance of $38,000 going to Alima and $10,000 going to Deyan. Any remainder is shared equally. b

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_2

Step: 3

blur-text-image_3

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

Advanced Management Accounting

Authors: Maurice L. Hirsch Jnr.

2nd Edition

1861526768, 978-1861526762

More Books

Students also viewed these Accounting questions

Question

6. Contrast and compare the RNR and GLM models of rehabilitation.

Answered: 1 week ago