Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement for the Apple.Jack Partnership for the year ended December 31,205, follows: Additional Information for 205 1. Apple began the year with a

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The income statement for the Apple.Jack Partnership for the year ended December 31,205, follows: Additional Information for 205 1. Apple began the year with a capital balance of $40,800. 2. Jack began the year with a capital balance of $120,000. 3. On April 1. Apple invested an additional $18,000 into the partnership. 4. On August 1, Jack invested an additional $23,000 into the partnership. 5. Throughout 205, each partner withdrew $400 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distributions. Apple and Jack have agreed to distribute partnership net income according to the following plan: Required: a. Prepare a schedule that discloses the distribution of partnership net income for 205. (Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.) Required: a. Prepare a schedule that discloses the distribution of partnership net income for 205. (Do not round intermediate calculotions. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's copital balance should be entered with a minus sign.) b. Prepare the statement of partners' capital at December 31, 205. (Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.) c. How would your answer to part a change if all of the provisions of the income distribution plan were the same except that the salaries were $38.000 to Apple and \$14,760 to Jack? (Do not round intermediate calculations. Round your final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

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

Bookkeeping And Accounting

Authors: Greg Shields

1st Edition

1983673536, 978-1983673535

More Books

Students also viewed these Accounting questions

Question

Wha t is proc rastination? (p. 3 02)

Answered: 1 week ago

Question

Learning is a good thing for everyone. Discuss.

Answered: 1 week ago

Question

What should be the role of managers in HRD?

Answered: 1 week ago

Question

What should be the role of government in HRD?

Answered: 1 week ago