Guenther firmin both of whom are cpas form a partnership

Reference no: EM13599258

Guenther Firmin, both of whom are CPA's, form a partnership, with Guenther investing $100,000 and Firmin, $80,000. They agree to share net income as follows:
1. Salary allowances of $80,000 to Guentheer and $50,000 to Firmin.
2. Interest allowances at 15 percent of beginning capital account balances.
3. Any partnership earnings in excess of the amount required to cover the interest and salary allowances to be divided 60 percent to Guenther and 40 percent to Firmin.

The partnership net income for the first year of operations amounted to $247,000 before interest and salary allowances. Show how this $247,000 should be divided between the two partners. Use a three-column schedule of the type illustrated in Exhibit C-9. List on separate lines the amounts of interests, salaries, and the residual amount divided.

Reference no: EM13599258

Questions Cloud

Discuss why it is necessary for accountants to assume that : discuss why it is necessary for accountants to assume that an economic entity will remain a going concern. if an entity

E-z manufacturing company is a partnership is a partnership : e-z manufacturing company is a partnership is a partnership among yolando gonzales willie todd and linda yeager. the

Should roi be the only gauge a company uses to evaluate : should roi be the only gauge a company uses to evaluate investments? also is it wise for a company to lose money on one

Container shipping inc is contemplating the use of process : container shipping inc. is contemplating the use of process costing to track the cost of its operations. the operation

Guenther firmin both of whom are cpas form a partnership : guenther firmin both of whom are cpas form a partnership with guenther investing 100000 and firmin 80000. they agree to

Adjusting entries are required at the end of the period to : adjusting entries are required at the end of the period to ensure that accrual accounting principles are applied. at

Suppose that melissas permanent residence and business was : melissa recently paid 775 for round-trip airfare to san francisco to attend a business conference for three days.

Douglas manufacturing company has two production : douglas manufacturing company has two production departments cutting and assembly. july 1 inventories are raw materials

On july 1 2010 brower industries inc issued 8000000 of : on july 1 2010 brower industries inc. issued 8000000 of 5-year 11 bonds at an effective interest rate of 12 receiving

User Account

All Pages