What are the anticipated ending capital balances

Assignment Help Accounting Basics
Reference no: EM132544593

Question - Assume Bert and Ernie have capital balances of $20,000 and $80,000, respectively. Bert is actively involved in running the business so he will receive a salary allowance of $50,000. Ernie, on the other hand, is the financial backing for the business. Therefore, Ernie will receive an interest allowance of 12 percent on his beginning capital balance. The remainder will be allocated in the ratio of the partners' beginning capital balances. If the partnership expects a profit of $150,000, what are the anticipated ending capital balances for the partners?

Reference no: EM132544593

Questions Cloud

What advantages to good ventures of pursuing cofunding : What are the pros and cons of conducting analysis at the issue level rather than by focusing on individuals or nonprofit organizations?
Describing the forensic tool : Describing the forensic tool that you will use for your project. this should include why you have chosen that forensic tool, what is the purpose etc
How should nancy corporation account : Nancy Corporation agreed to sell its common stock to Eddie Corporation for five monthly payments of $100,000. How should Nancy Corporation account
Organization leadership and decision making : Discuss the different stages for implementing information management in order to move form general principles to specific applications.
What are the anticipated ending capital balances : If the partnership expects a profit of $150,000, what are the anticipated ending capital balances for the partners
Determine the ratio of cash to monthly cash expenses : Determine the ratio of cash to monthly cash expenses for Year 3, Year 2, and Year 1 as of December 31. Round to one decimal place.
Calculate the past service costs : Zenith Company, a calendar-year entity, amends its defined benefit pension plan on January 1, 2019. Calculate the past service costs
What amount should the League report as pledges receivable : The League's experience indicates that 10% of all pledges prove to be uncollectible. What amount should the League report as pledges receivable
Participative management system : What is the leadership paradox? Give some reasons why a leader can encounter difficulty in newly formed teams or groups using a participative management system.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Why would an analyst use horizontal or vertical analysis

in performing financial ratio analysis, what the do the results mean? do the answers provide conclusions on their own, or do we have to pt them in perspective by comparing them to prior periods, other companies or competitiors or industry standard..

  Critically explain the type of audit opinion

Critically explain the type of audit opinion that should be issued in each of the above situations

  Discuss what are the balance sheet resources

What are the balance sheet resources they would require in order to operate their business

  Discuss different ways cost-volume-profit analysis

Describe and discuss 3 different ways cost-volume-profit analysis could be useful to management

  On january 1 2013 bishop company issued 10 bonds dated

on january 1 2013 bishop company issued 10 bonds dated january 1 2013 with a face amount of 520 million. the bonds

  Determining after-tax yield to maturity

If the investor holds the bond until it matures and collects the $1,000 par value from the Treasury and his marginal tax rate is 28 percent, what will his after-tax yield to maturity be?

  What would be the opportunity cost of selling internally

Katsen Company can sell its products to an external market for $201 per unit. What would be the opportunity cost of selling internally?

  Why does qualcomm report three different inventories

Qualcomm Incorporated is a leading developer and manufacturer of digital wireless telecommunications products and services.

  Identify potential differences in the accounting standards

For each ratio you have chosen, compare and contrast the results between these two firms. Most importantly, comment on how the differences in the basis.

  Complete the first stage allocations of costs

The company is implementing an activity-based costing system that has four activity cost. Complete the first stage allocations of costs to activity cost pools.

  Calculate equity in net income

Calculate equity in net income, reported on the parent's books

  Select a sample of sale from the sale journal

Detailed audit procedure:Select a sample of sale from the sale journal

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