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Ch9 โ P Details Angela Diaz Krause Opening balance $30,000 $58,000 $60, Interest $3,000 $5,800 $6, Salary $12,000 $9,000 $- $6,840 $13,680 $13, Withdrawal -$15,000 -$15,000 -$15, Balance $36,840 $71,480 $64, Deposit $5, Interest $3,684 $7,148 $6, Salary $12,000 $9,000 $- $740 $1,480 $1, Withdrawal -$15,000 -$15,000 -$15, Balance $38,264 $74,108 $62, Beginning balance $38,264 $74,108 $62, Interest $3,826 $7,411 $6, Salary $12,000 $9,000 $- Profit -$19,050 -$31,750 -$12, Withdrawal -$15,000 -$15,000 -$15, Balance $20,040 $43,769 $41, Profit (70,000 -14,800 - 21,000 = 34,200) Profit (42,000 - 17,300 - 21,000 = 3,700)
Ch9 โ P a) b) c) Date Account Debit Credit 31,dec Hugh, Drawings $7, Repair expenses $7, 31,dec Hugh, Capital $16, Jacobs, Capital $14, Hugh, Drawings $16, Jacobs, Drawings $14, 31,dec Revenues $175, Expenses $132, Income summary $42, 31,dec Income summary $42, Hugh, Capital $15, Jacobs, Capital $27, d) Date Account Debit Amt. Crdit Amt. Cash $64, Thomas Capital $48, Hugh, Capital $6, Jacobs, Capital $9, When we equate the status of J partner's full-time commitment to the status of H partner's intermittent participation, the benefit and loss sharing ratio is 4:6. Furthermore, since H partner made a greater capital investment, the interest on capital is measured dependent on the higher valuation. J partner, on the other hand, is entitled to a higher profit share due to his higher degree of interest in the company. As a result, the J partner's salary is greater than the H partner's. The number of withdrawals that each partner was permitted to make was not stated in the partnership agreement. In addition, the allowance bonus and benefits for working are set according to the remuneration in the relationship. Furthermore, according to the contributed money, withdrawals can be made according to an informal arrangement at any point during the year. As a result, no exit cap was set in the agreement.
Ch9 โ P 1) E investment (E.I.) 25% (Original Capital + E investment) EI 25% ( 270,000 + E investment) 0.75 EI $67, EI $90, 2) Implied value contribution / interest per share Implied value 36000 / 10% Implied value $360, Goodwill Implied Value - Capital after Investment Goodwill 360,000 - 306, Goodwill $54, Allocation to partners: a) 30% $16, b) 10% $5, c) 40% $21, d) 20% $10, Calculate Capital Ending Balance A B C Original Balance $20,000 $40,000 $90, Goodwill $16,200 $5,400 $21, Investment $- $- $- Capital Balance $36,200 $45,400 $111,
Implied Value to E 42,000 / 20% = $ E Investment 20% (Original Capital + E Investment) 42,000 + goodwill 20% (270,000 + 42,000 + goodwill) 42,000 + goodwill 62,400 + 0.2 goodwill 0.8 goodwill $20, Goodwill $25, The total investment 42,000 + 25,500 = $67,
Implied Value to E 55,000/20% = $275, Capital After Investment $325, Percentage acquired 0. E capital balance $65, E Payment $55, bouns given $10, Distrbution to partners a) 10% $1,
b) 30% $3, c) 20% $2, d) 40% $4, Calculate Capital Ending Balance A B C Original Balance $20,000 $40,000 $90, Goodwill -$1,000 -$3,000 -$2, Investment $- $- $- Capital Balance $19,000 $37,000 $88,
C capital $90, $112, Bouns $22, Amount to each partner = 2 $7, Calculate Capital Ending Balance A B C Original Balance $20,000 $40,000 $90, Goodwill -$7,500 -$7,500 $22, Investment $- $- -$112, Capital Balance $12,500 $32,500 $- Amount collected = 90,000 * 125%
nding Balance D E $120,000 $- -$4,000 $10, $- $55, $116,000 $65, nding Balance D $120, -$7, $- $112,
Ch9 โ P 2016 NI - Allocation B J Total Net income $11, Compensation $8,000 -$8, Profit/Loss $3, Capital Balance B J Total Beginning balance $57,000 $57,000 $114, Compensation $8,000 - $8, Profit/Loss share $1,200 $1,800 $3, Ending Balance $66,200 $58,800 $125, 2017 Admitting Partner B J W Before $66,200 $58, Admission -$7,040 -$10,560 $71, After $59,160 $48,240 $71, NI Allocation B J W Net income Compensation $12,000 $24, After Capital balance B J W Beginning balance $59,160 $48,240 $71, Compensation $12,000 - $24, Profit/Loss share -$960 -$3,840 -$3, Withdrawings -$5,000 -$5,000 -$10, Ending balance $65,200 $39,400 $82, 2018 Capital balance B J W Beginning balance $65,200 $39,400 $82, Admission (10%) -$6,520 -$3,940 -$8, After $58,680 $35,460 $74, NI Allocation B J W Net income Compensation $12,000 $24, Profit/Loss NI Allocation B J W Beginning balance $58,680 $35,460 $74, Compensation $12,000 $24,
Total $125, $54, $179, Total $28, -$36, -$8, Total $179, $36, -$8, -$20, $187, P Total $187, $18,700 $- $18,700 $187, P Total $46, $9,600 -$45, $ P Total $18,700 $187, $9,600 $45,
Interest $25,193 $19,692 $8,204 $17, Bouns $2,604 $2,604 $- $- Reminder to allocation $6,510 $6,510 $6,510 $6, Total allocation $49,348 $41,767 $25,194 $36, Capital Account Balances January 1, 2018 - December 31, 2018 Gray Stone Lawson Monet Beginning contributions $209,943 $164,103 $68,364 $144, Net income allocation $49,348 $41,767 $25,194 $36, Drawings -$20,994 -$16,410 -$6,836 -$14, Ending balance $238,296 $189,459 $86,722 $166,
Total -$20, -$46, -$80, $- -$148, $148, $- Total $674, -$20, -$67, $586, Total $152, -$51,
