Allocation of net income in each of the situations

Assignment Help Financial Accounting
Reference no: EM13487274

Martha and Jones have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for

(1) Annual salaries of $20,000 for Martha and $12,000 for Jones,

(2) Interest at 10% on beginning capital balances, and

(3) Remaining income or loss to be shared 60% by Martha and 40% by Jones.
Instructions

(a) Prepare a schedule showing the distribution of net income, assuming net income is (1) $50,000 and (2) $36,000.

(b) Journalize the allocation of net income in each of the situations above.

Reference no: EM13487274

Questions Cloud

Explain the values from the table of reduction potentials : Use the values from the table of reduction potentials on the last page to determine ?Gº and Keq for the reaction as listed below.
Find the loss of kinetic energy in this inelastic collision : Two manned satellites approaching one another at a relative speed of 0.100 m/s intend to dock. The first has a mass of 2.50 ? 103 kg, What is the loss of kinetic energy in this inelastic collision
Discuss nature of materiality and the basis for calculation : An audit is being undertaken for Atlantic Ltd for the year ended 30 June 2013. While assessing the risk of material misstatement you identify that a large number of debtors are exceeding 60 days where credit terms are 30 days.
Evaluate the cell potential for a galvanic cell made : Calculate the cell potential for a galvanic cell made from an iron electrode in a 1.75 M solution of Fe(NO3)2 and a silver electrode in a 5.00 x 10-3 M solution of AgNO3 at 298 K. Eºcell
Allocation of net income in each of the situations : Prepare a schedule showing the distribution of net income, assuming net income is (1) $50,000 and (2) $36,000 and journalize the allocation of net income in each of the situations
Determine the final volume of the gas : A gas, while expanding under isobaric conditions, does 494 J of work. The pressure of the gas is 1.57E+5 Pa, What is the final volume of the gas
Explain what are some reasons we want oxide layers : What are some reasons we want oxide layers and why cant we rely on oxidation in ambient environments for these layers
Sale of assets and distribution of the gain : Prepare the journal entry to distribute available cash on January 1, 2011. Include a safe payments schedule as proper explanation of who should receive cash.
What is the speed of the lighter block : two blocks connected by a light cord over a pulley. This apparatus is known as an Atwood's machine. what is the speed of the lighter block

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd