Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sorman and Monton form a partnership on May 1, 2019 . Gorman contributes cash of $59,000; Morton conveys titie to the following properties to the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Sorman and Monton form a partnership on May 1, 2019 . Gorman contributes cash of $59,000; Morton conveys titie to the following properties to the partnership: The partners agree to start their partnership with equal captal baiances. No goodwil is to be recognized. According to the articles of pertnership written by the partsers, profits and losses are allocated based on the following formula. - Gorman receives a compentetion allowance of $900 per month - All remaining profits and losses ale spitt 3070 between Gorman and Morton, respectively. - Each partner can make annual cash drewings of 57,000 beginning in 2020 Net income of $15,500 is earned by the business during 2019 Steele is invited to join the porterahp on Januacy 1, 2020 Because of her butiness reputation and financial expertise, she is given a 40 percent intetest for $63.000cash. The bonus approsch is used to record this investment, made directy to the business. The erscles of partnership are amended to give Steele a $3,000 compensation aliowance per manth and an annual cash drawing of $14.000 Rernaining profits ere now allocated: drawings are taken by the partners during 2020 . At year-end, the partnership reports net income of $102,000. n January 1, 2021, Frank (previously a partnership employee) is admitted into the partnership. Each partner transfers 10 percent to ank, who makes the following payments directly to the partners: ince again, the articles of partnership must be amended to allow for the entrance of the new partner. This change entities Frank to a ompensation allowance of $700 per month and an annual drawing of $6,000. Profits and losses are now assigned as follows: For the year of 2021, the partnership earned a profit of $49,900, and each partner withdrew the allowed amount of cash. Prepare schedules that determine the capital balances for the individual partners as of the end of each year 2019 through 2021. Complete this question by entering your answers in the tabs below. Prepare a schedule that determines the ending capital balance for each partner as of the end of 2019. For the year of 2021 , the partnership earned a profit of $49,900, and each partner withdrew the allowed amount of cash Prepare schedules that determine the capital balances for the individual partners as of the end of each year 2019 throug Complete this question by entering your answers in the tabs below. Prepare a schedule that determines the ending capital balance for each partner as of the end of 2019. Complete this question by entering your answers in the tabs below. Prepare a schedule that deterihines the ending capital balance for each partner as of the end of 2020 . (Amounts to be deducted should be indicated with minus sign.) For the year of 2021 , the partnership earned a profit of $49,900, and each partner withdrew the allowed amount of cash. Prepore schedules that determine the capital balances for the individual partners as of the end of each year 2019 through 2021 . Complete this question by entering your answers in the tabs below. Prepare a schedule that determines the ending capital balance for each partrer as of the end of 2021 . (Amounts to be deducted showid be indicated with minus sign.j) Sorman and Monton form a partnership on May 1, 2019 . Gorman contributes cash of $59,000; Morton conveys titie to the following properties to the partnership: The partners agree to start their partnership with equal captal baiances. No goodwil is to be recognized. According to the articles of pertnership written by the partsers, profits and losses are allocated based on the following formula. - Gorman receives a compentetion allowance of $900 per month - All remaining profits and losses ale spitt 3070 between Gorman and Morton, respectively. - Each partner can make annual cash drewings of 57,000 beginning in 2020 Net income of $15,500 is earned by the business during 2019 Steele is invited to join the porterahp on Januacy 1, 2020 Because of her butiness reputation and financial expertise, she is given a 40 percent intetest for $63.000cash. The bonus approsch is used to record this investment, made directy to the business. The erscles of partnership are amended to give Steele a $3,000 compensation aliowance per manth and an annual cash drawing of $14.000 Rernaining profits ere now allocated: drawings are taken by the partners during 2020 . At year-end, the partnership reports net income of $102,000. n January 1, 2021, Frank (previously a partnership employee) is admitted into the partnership. Each partner transfers 10 percent to ank, who makes the following payments directly to the partners: ince again, the articles of partnership must be amended to allow for the entrance of the new partner. This change entities Frank to a ompensation allowance of $700 per month and an annual drawing of $6,000. Profits and losses are now assigned as follows: For the year of 2021, the partnership earned a profit of $49,900, and each partner withdrew the allowed amount of cash. Prepare schedules that determine the capital balances for the individual partners as of the end of each year 2019 through 2021. Complete this question by entering your answers in the tabs below. Prepare a schedule that determines the ending capital balance for each partner as of the end of 2019. For the year of 2021 , the partnership earned a profit of $49,900, and each partner withdrew the allowed amount of cash Prepare schedules that determine the capital balances for the individual partners as of the end of each year 2019 throug Complete this question by entering your answers in the tabs below. Prepare a schedule that determines the ending capital balance for each partner as of the end of 2019. Complete this question by entering your answers in the tabs below. Prepare a schedule that deterihines the ending capital balance for each partner as of the end of 2020 . (Amounts to be deducted should be indicated with minus sign.) For the year of 2021 , the partnership earned a profit of $49,900, and each partner withdrew the allowed amount of cash. Prepore schedules that determine the capital balances for the individual partners as of the end of each year 2019 through 2021 . Complete this question by entering your answers in the tabs below. Prepare a schedule that determines the ending capital balance for each partrer as of the end of 2021 . (Amounts to be deducted showid be indicated with minus sign.j)

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

Step: 3

blur-text-image

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

Excel For Auditors

Authors: Bill Jelen, Dwayne K. Dowell

1st Edition

ISBN: 1932802169, 978-1932802160

More Books

Students also viewed these Accounting questions

Question

suggest a range of work sample exercises and design them

Answered: 1 week ago