hw1 - Problem 12-1A (50 minutes) 1. Dec. 31 Income Summary....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem 12-1A (50 minutes) 1. Dec. 31 Income Summary. ................................................................................. 124,500 Kim Ries, Capital. ............................................................................ 41,500 Tere Bax, Capital. ............................................................................ 41,500 Josh Thomas, Capital. .................................................................... 41,500 To close Income Summary. 2. Dec. 31 Income Summary. ................................................................................. 124,500 Kim Ries, Capital. ............................................................................ 31,125 Tere Bax, Capital. ............................................................................ 43,575 Josh Thomas, Capital. .................................................................... 49,800 To close Income Summary*. *Supporting computations ($40,000/$160,000) x $124,500 = $31,125 ($56,000/$160,000) x $124,500 = $43,575 ($64,000/$160,000) x $124,500 = $49,800 3. Dec. 31 Income Summary. ................................................................................. 124,500 Kim Ries, Capital. ............................................................................ 39,500 Tere Bax, Capital. ............................................................................ 36,100 Josh Thomas, Capital. .................................................................... 48,900 To close Income Summary*. *Supporting calculations Ries Bax Thomas Total Net income. ............................................... $124,500 Salary allowances Ries. ........................................................ $33,000 Bax. ......................................................... $28,000 Thomas. .................................................. $40,000 Total salaries. ............................................ 101,000 Balance after salary allowances. ............ 23,500 Interest allowances Ries (10% on $40,000). .......................... 4,000 Bax (10% on $56,000). ........................... 5,600 Thomas (10% on $64,000). .................... 6,400 Total interest. ............................................ 16,000 Bal. after interest and salaries. ............... 7,500 Balance allocated equally. ....................... 2,500 2,500 2,500 Total allocated equally. ............................ 7,500 Balance of income. ................................... ______ ______ ______ $ 0 Shares of the partners. ............................ $39,500 $36,100 $48,900
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Part 1 Income (Loss) Sharing Plan Calculations Bill Ron Barb Total (a) $450,000/3. ............................................................... $150,000 $150,000 $150,000 $450,000 (b) $225,000 x ($183,750/$525,000). ............................... 78,750 $225,000 x ($131,250/$525,000). ............................... 56,250 $225,000 x ($210,000/$525,000). ............................... ______ ______ 90,000 Total allocated. ......................................................... $78,750
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

hw1 - Problem 12-1A (50 minutes) 1. Dec. 31 Income Summary....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online