Stated ratios in the partnership agreement

Assignment Help Financial Accounting

Reference no: EM13825205

Elijah Samuels and Tony Winslow agreed to form a partnership. Samuels contributed $200,000 in cash, and Winslow contributed assets with a fair market value of $400,000. The partnership, in its initial year, reported net income of $120,000. Calculate the distribution of the first year’s income to the partners under each of the following conditions:

1. Samuels and Winslow failed to include stated ratios in the partnership agreement.

2. Samuels and Winslow agreed to share income and losses in a 3:2 ratio.

3. Samuels and Winslow agreed to share income and losses in the ratio of their original investments.

4. Samuels and Winslow agreed to share income and losses by allowing 10 percent interest on original investments and sharing any remainder equally.

Reference no: EM13825205

Questions Cloud

International laws for trade of goods : Research whether there have been any disputes involving your country before a WTO panel in the last five years. If so, please post a very brief summary of one such case

Basic types of accounts that require adjusting : When are accounts adjusted? Why are accounts adjusted? What are the four basic types of accounts that require adjusting?

What happens to the marginal utility of bracelets : The problem belongs to Economics and it is explain about marginal utility and total utility of bracelets and sodas. What happens to the Total Utility received? What happens to the total dollars spent?

Employee expenses and deferred compensation : Louie is a full-time employee for a large corporation and also an investor in the stock market in his spare time. In the current year, Louie incurs $2,500 of travel expenses and $1,000 in registration fees related to attending investment seminars.

Stated ratios in the partnership agreement : Elijah Samuels and Tony Winslow agreed to form a partnership. Samuels contributed $200,000 in cash, and Winslow contributed assets with a fair market value of $400,000. Samuels and Winslow failed to include stated ratios in the partnership agreement.

Reported as intangible assets in the balance sheet : Indicate which items on the list above would generally be reported as intangible assets in the balance sheet. Indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements

Limited partnership interest-react to bridgets position : Five years ago Bridget decided to purchase a limited partnership interest in a fast-food restaurant conveniently located near the campus of Southeast State University. The general partner of the restaurant venture promised her that the investment wou..

Which transaction amounts are posted to the ledger : A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n)

Entry in journal form to record the transfer of ownership : After the partnership has been operating for a year, the Capital accounts of Bob and Kim are $15,000 and $10,000, respectively. Sonia buys a one-fourth interest in the partnership by investing cash of $5,000. Prepare the entry in journal form to reco..

User Account

All Pages