Matthew_McCoy_Problem 12-2A

Matthew_McCoy_Problem 12-2A - Watts (30,000/75,000)X 75,000...

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Matthew McCoy Problem 12-2A Year 1 (18,000 Net Loss) Income (Loss) ______________________________________________ Sharing Plan Calculations Watts (30,000/75,000)X -18,000 (7,200) (45,000/75,000)X -18,000 (.5/1.5)X -18,000 (6,000) (1/1.5)X -18,000 (30,000/75,000)X -54,000 (21,600) to Thomas w/ balance by ratio 36,000+((45,000/75,000)X-54,000) (10%X30,000)+(.5X-61,500) (27,750) Thomas + 10% inv. And bal.  36,000+(10%X45,000)+(.5X-61,500) shared equally Year 2 (45,000 Net Incom Income (Loss) ______________________________________________ Sharing Plan Calculations Watts (30,000/75,000)X 45,000 18,000 (45,000/75,000)X 45,000 (.5/1.5)X 45,000 15,000 (1/1.5)X 45,000 (30,000/75,000)X 9,000 3,600 to Thomas w/ balance by ratio 36,000+((45,000/75,000)X9,000) (10%X30,000)+(.5X1,500) 3,750 Thomas + 10% inv. And bal.  36,000+(10%X45,000)+(.5X1,500) shared equally Year 3 (75,000 Net Incom Income (Loss) ______________________________________________ Sharing Plan Calculations
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Unformatted text preview: Watts (30,000/75,000)X 75,000 30,000 (45,000/75,000)X 75,000 (.5/1.5)X 75,000 25,000 (1/1.5)X 75,000 (30,000/75,000)X 39,000 15,600 to Thomas w/ balance by ratio 36,000+((45,000/75,000)X39,000) (10%X30,000)+(.5X31,500) 18,750 Thomas + 10% inv. And bal. 36,000+(10%45,000)+(.5X31,500) shared equally ( a ) ratio of capital investments ( b ) proportion of time devoted ( c ) salary allowance of $3,000 ( d ) sal. Allowance $3,000 to ( a ) ratio of capital investments ( b ) proportion of time devoted ( c ) salary allowance of $3,000 ( d ) sal. Allowance $3,000 to ( a ) ratio of capital investments ( b ) proportion of time devoted ( c ) salary allowance of $3,000 ( d ) sal. Allowance $3,000 to ) ______________ Thomas (10,800) (12,000) 3,600 9,750 e) ______________ Thomas 27,000 30,000 41,400 41,250 e) ______________ Thomas 45,000 50,000 59,400 56,250...
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This note was uploaded on 09/24/2011 for the course ACCT 212 taught by Professor Sheik during the Spring '11 term at Mountain State.

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Matthew_McCoy_Problem 12-2A - Watts (30,000/75,000)X 75,000...

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