User Account

All Pages

What is henson bonus

Assignment Help Accounting Basics
Reference no: EM132808973

Garcia and Henson formed a partnership on January 2, 2005 and agreed to share profits 90% and 10%, respectively. Garcia contributed capital of ?25,000. Henson contributed no capital but has a specialized expertise and manages the firm full time. There were no withdrawals during the year.

The partnership agreement provides for the following:

Capital accounts are to be credited annually with interest at 5% of beginning capital.

Henson is to be paid a salary of ?1,000 a month.

Henson is to receive a bonus of 20% of income calculated before deducting his salary, bonus and interest on capital account.

The partnership 2005 income statement as follows:

Revenues ? 96,450

Expenses (including salary, interest, and bonus) 49,700

Net income ? 46,750

Problem 1: What is Henson's 2005 bonus?

Reference no: EM132808973

Questions Cloud

What number of units started and completed during september : What number of units started and completed during September was? Duke Company transferred 5,500 units to Finished Goods Inventory
Prepare the journal entries to record the mortgage loan : Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2019.
How much should c invest in the partnership : The net assets of the firm as of this date approximate their fair values. If no bonus shall be allowed, how much should C invest in the partnership?
Strategic partnership for a new gigafactory in china : The Strategic Partnership for a New Gigafactory. Does Tesla have internal capability to exploit opportunities and overcome the threats/entry barriers?
What is henson bonus : What is Henson's 2005 bonus? Garcia and Henson formed a partnership on January 2, 2005 and agreed to share profits 90% and 10%
What amount of profit would be necessary : Salaries traceable to the other partners are estimated to be ?100,000. What amount of profit would be necessary so that Maxwell would consider the choices to be
How much is the share of partner b in the partnership profit : How much is the share of Partner B in the partnership profit? The partners share profits equally and losses on a 60:40 ratio. During the period the partnership.
Which partner should provide additional investment : Which partner should provide additional investment (or withdraw part of his investment) in order to bring the partners' capital credits equal to the respective
How much is the adjusted capital balance of b immediately : A and B agreed to form a partnership. How much is the adjusted capital balance of B immediately after the formation of the partnership?

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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