7-1 activity

Good day p,ease help me with this activity from my textbook ICE ACTIVITY 4 Choose the most appropriate alternative from the options provided for each of the following questions. Write down ONLY the letter of your choice next to the corresponding number (e.g. 4.27  =  B). Note: where applicable, assume a VAT rate of 15%.   4.1     The balances of the following account(s) in the general ledger of a partnership will contribute to the balance of the total equity section of the statement of financial position. A        Capital accounts B        Current accounts C        Reserve accounts D        All of the above   4.2     An accrued expense of R500 was recorded as a prepaid expense during the adjustment process. The effect of the error would have caused the________. A        Gross profit to be understated by R500 B        Gross profit to be overstated by R500 C        Net profit to be understated by R1000 D        Net profit to be overstated by R1000   4.3     Which of the following will…

Question 20 of 75 S1: It is both common and good business practice for partners to pay their personal bills with partnership funds. S2: Salary allowances are allocations of income that appear in the expenses section of the income statement. Select the correct response. O S1 is False, S2 is True O s1 is True; S2 is False O s1 & S2 are False O s1 & S2 are True ( Previous

OverviewDiscuss tax planning opportunities utilizing a partnership structure. InstructionsRead Section 10.6 “Tax Planning” in Chapter 10. If you were going to start a business with a few of your closest friends (or family), would you choose to form a partnership? Why or why not?

Complete the general journal on 2.4 using the table and email in image 2.

Problem 2: Statement of Changes in Equity - Partnership The following are taken from the accounting records of JFK Partnership. December 31, 2020 December 31, 2021 James, Capital P54,900 P64,900 Christine, Capital 53,200 63,900 Lolly, Capital 44,890 50,890 The partnership generated net income of P51,600 in 2020. According to the partnership contract, James, Christine and Lolly share profit and loss equally. The partnership contract allows each partner to withdraw P1,000 monthly. James and Christine each contributed P5,000 during the year. Loll did not make any contributions during the year. Required: 1. Prepare the partnership's Statement of Changes in Equity. 2. Determine if any of the partners violated the partnership contract provision on Drawings. Identify who among the partners it is.

QUESTION THREE Pat, Matilda & Sammy were in partnership sharing profits in the ratio 3.2:1 respectively. A summary of the statement of financial position of the partnership as at September 31, 2022 is as follows: PAT, MATILDA & SAMMY Statement of Financial Position of the Partnership as at December 31, 2022 GHC Assets Plant & Machinery Moto vehicle Furniture & fittings Current Assets Inventory Trade receivables Cash and Bank Current Liabilities Trade payables Working Capital THE Represented By Capital account US Current account Non-Current Liability Pat Matilda Sammy Pat Matilda Sammy Loan account- Matilda Show Transcribed Text S You are required to prepare: i. The realization accounts ii. The Cash and Bank Account 10,000 3,600 7.400 Page 5 of 7 10,200 13,500 18.300 Ć 42,000 10.500 15,000 9,000 6.000 7,200 5,400 3.900 Due to a disagreement between Pat & Sammy, the partners decided to dissolve the partnership and the following decisions were taken in relation to the dissolution. GHO 7-0…

Task 2: X and Y share income of their partnership in a 2:3 ratio. X and Y receive salaries of $18,000 and $12,000, respectively. a) How would they share a net income of $30,000 (before salaries are distributed)? b) You should make the journal entry for this activity. c) In which ways will the results in a) and b) be changed if the ratio is 1:4?

EXERCISE 6-12. Problem Solving 3. Alger is trying to decide whether to accept a salary allowance of P80,000 or a salary allowance of P50,000 plus a bonus of 10% of net income after salary and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P200,000. You are required to determine the amount of partnership net income that would be necessary so that Alger would be indifferent between the two.

Use Group 4 additional information

Solve the problem correctly.

complete please

LEARNING MODULES O CPALE Simulation Level 16 1. Cash settlements between and among 2. When property other than cash is invested in a partnership, at what amount should the non-cash property be credited to the contributing partner's capital account? a. fair value at the date of contribution partners to equalize their initial capital credits are a. recorded in the partnership books b. not recorded in the partnership books c. accounted for as an additional investment to b. contributing partner's original cost the partnership or as withdrawals or investments from the partnership d. a and c 3. A partner who is entitled to a share of the profits from a partnership is known as a. a salaried partner b. a managing partner c. an equity partner d. a limited partner 5. An advantage of the partnership as a form of business organization would be a. partners do not pay income taxes on their share in partnership income c. assessed valuation for property tax purposes d. contributing partner's tax basis…

C1

Answer with short Explanation Each Quation

QUESTION 90 Schedule M-1, Reconciliation of Income per Books With Income per Return, reconciles financial net income with the ordinary business income (loss) reported by the partnership on Form 1065, page 1. O True False

Homework Activity 1 A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000,          B 1500,          C 1000 Interest on drawings: A 200,             B 150,            C 100 Salary to Partners A 500              B 700             C 600 Commission to Partners A 200              B 300             C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.

Watts and Lyon are forming a partnership. Watts invests $40,500 and Lyon invests $49,500. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon will work three-fourths. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments; (b) in proportion to the time devoted to the business; (c) a salary allowance of $15,000 per year to Lyon and the remaining balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $15,000 per year to Lyon, 11% interest on their initial capital investments, and the remaining balance shared equally. The partners expect the business to perform as follows: Year 1, $13,000 net loss; Year 2, $32,500 net income; and Year 3, $54,167 net income. Required: Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of…

Pl3ase answ3 in a table format like in an exc3l or g00gle sheets.

TIF 5-1 Ethics in Action Edward Seymour is a financial consultant to Cornish Inc., a real estate syndicate. Cornish fi- nances and develops commercial real estate (office buildings) projects. The completed projects are then sold as limited partnership interests to individual investors. The syndicate makes a profit on the sale of these partnership interests. Edward provides financial information for prospective investors in a document called the offering “prospectus." This document discusses the financial and legal details of the limited partnership investment. One of the company's current projects is called JEDI 2, and has the syndicate borrowing money from a local bank to build a commercial office building. The interest rate on the loan is 6.5% for the first four years. After four years, the interest rate jumps to 15% for the remaining 20 years of the loan. The interest expense is one of the major costs of this project and significantly affects the number of renters needed for the…

Q8 ABC Bakers is a partnership concern owned and operated by Mr. X and Mr. Y. Identify the option that reflect the correct treatment of accounting transaction in the books of ABC Bakers? Select one: a. Mr. X borrowed Mr. Y money from a partnership’s bank account to buy a car for personal use: Debit vehicle; Credit Bank b. Mr. Y purchased an oven for the bakery using his personal credit card: Debit Oven (Asset); Credit Equity Capital c. Mr. X paid his house rent from the business bank account. Debit Rent expense; Credit Bank B d. Mr. Y paid out of bu

I need help with C D and E

Please help me with correct answer thanku

9

Problem: Module 7 Textbook Problem 3 Learning Objectives: • 7-5 Differentiate between a distributive share of partnership income and cash flow • 7-6 Adjust the tax basis in a partnership interest Garlic, an individual, is a limited partner in Onion Partnership. This year, Garlic's share of partnership ordinary income is $20,000, and she received a cash distribution of $30,000. Garlic's tax basis in her partnership interest at the beginning of the year was $50,000. Her marginal tax rate is 22 percent. Garlic qualifies for the QBI deduction, without regard to any limitations on this QBI deduction. Required: a. Calculate the tax cost of Garlic's partnership earnings this year. Tax cost b. Compute Garlic's after-tax cash flow from her partnership activity this year. After-tax cash flow c. Compute Garlic's tax basis in her partnership interest at the ending of the year. Assume no change in her share of partnership liabilities during the year. Tax basis at the end of the year

How does financial reporting by partnership different from corporate financial reporting Please solve within 30 minutes

Helping tags: Accounting . . . . WILL SURELY UPVOTE, just pls help me answer all the parts pls. Thank you!

QUESTION 1 Kumaresan and Cheng are watch repairmen who want to form a partnership and open a jewellery store. An attorney prepares their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value. The assets contributed by each partner and the liabilities assumed by the partnership are as the following: Assets Kumaresan Cheng Total 40,000 52,000 4,000 1,000 20,000 30,000 20,000 3,000 500 70,000 72,000 7,000 1,500 30,000 Cash Accounts receivable Allowance for uncollectable accounts Supplies Equipment Liabilities Accounts payable 10,000 32,000 9,000 41,000 REQUIRED: Prepare the journal entries necessary to record the original investments of Kumaresan and Cheng in the partnership.