See attached document.
Dividing Partnership Net Loss1) Ashely Adams and Michael Rovell formed a partnership in which the partnership agreement provided for salary allowances of $45,000 and $35,000, respectively. Determine the division of a $30,000 net loss for the current year. ** I assume I'd do the same thing add the allowances together, - but from there I am lost** Partner Income/Withdrawl Journal Entries 1) the notes to the annual report for KPMG LLP (U.K), indicated the following policies regarding the partner's capital: 'the allocation of profits to those who were partners during the financial year occurs following the finalization of the annual financial statements. during the year, partners have received monthly drawings and, from time to time, additional profit distributions. both the monthly drawings and profits distrubutions represent payments on account of current-year profits and are reclaimable from partners until profits have been allocated.' Assume that partners draw 40 million per month for 2012 and the net income for the year is 600 million. Journalize the partner capital and partner drawing control accounts in the following requirements. a) provide the journal entry for the monthly partner drawing for January b) provide the journal entry to close the income summary account at the end of the year c) provide the journal entry to close the drawing account at the end of the year d) why would partner drawings be considered 'reclaimable' until profits have been allocated? Admitting New Partner with Bonus 1) J. Witt and K. Torres are partners in Whole Earth Consultants, Witt and Torres share income equally. K. Jenkins will be admitted to the partnership. Prior to admission, equipment was revalued downward by $12,000. The capital balances of each partner are $106,000 and $141,000 respecitvely, prior to revaluation. a) provide the journal entry for asset revaluation b) provide the journal entry for Jenkins' admission under the following independent situations i) Jenkins purchased a 20% interest $45,000 ii) Jenkins purchased a 30% interest $135,000 Dividing Partnership Income Dryer and Salinas have decided to form a partnership. They have agreed that Dryer is to invest $120,000 and that Salinas is to invest $40,000. Dryer is to devote one half time to the business and Salinas is to devote full time. The following plans for the diviion of income are being considered. a) Equal devision b) in ratio of original investment c) in ratio of time devoted to business d) interest of 12% on original investments and remainder equally e) interest 12% on original investment, salary allowances of $32,000 -> Dryer, and $64,000 -> Salinas, and remainder rqually f) plan (3) except Salinas is to be allowed a bonus equal to 20% amount by which net income exceeds the total salary allowances. Instructions- For each plan determine division of net income under each following assumptions 1) net income of $108,000 and 2) net income of $150,000. Present the data in tabular form, using following columnar Headings: $108,000 $150,000 Plan Dryer/Salinas Dryer/Salinas
