Prepare entries to close the firm income summary account

Assignment Help Accounting Basics
Reference no: EM132703299

Question - Methods for allocating partnership profit

Phung, Moier, and lister invested $130,000, $150,000, and $120,000, respectively into an organic farm to restaurant distribution business. During its first year, the firm earned $25,000.

Required - Prepare entries to close the firm's income summary account as of December 31 and to allocate the profit to the partners under each of the following assumptions.

a. The partners did not specify any special method of sharing profit.

b. The partners agreed to share profit and losses in the ratio of their beginning investments.

c. The partners agreed to share profit by providing annual salary allowances of $75,000 to Phung, $40,000 to Moier, and $40,000 to Lister; allowing 20% interest on the partner's beginning investments; and sharing the remainder equally.

Reference no: EM132703299

Questions Cloud

Amount of the business combination valuation : What is the amount of the business combination valuation reserve that will be recognised on consolidation - The fair value of the identifiable net assets
Circumstantial evidence : Defend or dispute the Court's holding in this case based on the evidence presented.
Make journal entries to account for Parker Ltd transactions : Make journal entries to account for Parker Ltd's transactions. Spent $40 000 to develop a patent during 2021.
What are the president constitutional lawmaking powers : Why is the president often called the chief legislator? What are the president's Constitutional lawmaking powers?
Prepare entries to close the firm income summary account : Prepare entries to close the firm's income summary account as of December 31 and to allocate the profit to the partners under
Rules-based compliance-values-based compliance program : What is the difference between a rules-based compliance program and a values-based compliance program? Can you have one without the other?
Endorsed as merit system-appointment system : There are three systems used to select Probation and Parole officers. The three systems are endorsed as the merit system, appointment system,
How much is Franco adjusted basis in the LLC interest : How much is Franco's adjusted basis in the LLC interest after the distribution, and what is the amount of his basis in the equipment received
One type of evidence is direct evidence : One type of evidence is direct evidence, which is based on personal knowledge or observation of the person testifying.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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