13. The partnership has the following accounting amounts: Sales 70,000 Interest paid to banks 2,000 Cost of goods sold 40,000 Partners' withdrawals 8,000 Operating expenses 10,000 Salary allocations to partners 13,000 The partnership net income (loss) is: A. 20,000 B. 18,000 C. 5,000 D. (3,000)

13. The partnership has the following accounting amounts: Sales 70,000 Interest paid to banks 2,000 Cost of goods sold 40,000 Partners' withdrawals 8,000 Operating expenses 10,000 Salary allocations to partners 13,000 The partnership net income (loss) is: A. 20,000 B. 18,000 C. 5,000 D. (3,000)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 11MC: Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at...

See similar textbooks

Related questions

Q: Mr. Opoku, the sole Proprietor of Dangote Enterprise started business in the year 2019, dealing in s...

A: Ledger Account The purpose of preparing the ledger account to know the net balance which are incurre...

Q: Answer the follow: Explain the corporate characteristic termed “no mutual agency" Explain the corpo...

A: The question is related to Characteristics of Comapnies. A company is an artificial person created b...

Q: Which of the following is not a liability? a) Amounts owed to shareholders as capital b) Governmen...

A: Amount owed to shareholders is not a liability. We recognise liability in the balance sheet if there...

Q: Cost formula Information on Entity A's inventory of Product A is as fóllows: Units Total Cost P 58,6...

A: Solution: Under FIFO method of inventory costing, units purchased first is considered as sold first....

Q: he storeroom in Ant's restaurant caught fire last week after his hot water heater exploded. The fire

A: Liability is that which a business owes to someone else. Hazard is harm ...

Q: At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machiner...

A: Computation of total cost of machine = initial cost + overhauling cost + installation cost = 25600+1...

Q: TK Co. manufactures a single product that goes through two processes, mixing and cooking. The data p...

A: 8) Equivalent units of X Beginning WIP 27000 Add: units added durin...

Q: Steps involved in classification of ABC analysis.

A: ABC analysis is the technique of inventory management. Under this analysis, inventory items are clas...

Q: Content CengageNOWv2 | Online teachin x -m/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAss...

A: GAIN OR LOSS ON SALE OF SHARES : = TOTAL VALUE OF SHARES SOLD - TOTAL VALUE OF SHARES PURCHASED

Q: P9. The following information is available for Delta Company as of April 30, 2014 GENERAL LEDGER AD...

A: Lease rentals are the expense for the lessee that is to be paid till the end of the lease term for u...

Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to productio...

A: Labor spending variance = Actual labor cost - Standard labor cost Variable overhead rate variance= (...

Q: ABC, Inc., sells tea products to various customers. In recent years, profits have been declining. Th...

A: The question is based on the concept of Cost Accounting.

Q: Mr. and Mrs. Tan own 100% of the common stock of ABC Company and 90% of the common stock of XYZ Comp...

A: Total shareholders equity shall be 100% shareholders equity of ABC + 90% shareholders equity of ABC ...

Q: Adger Corporation is a service company that measures its output based on the number of customers ser...

A: The variance is the difference between standard and actual data of production. The activity variance...

Q: Capital losses are different ordinary losses in that the former may only be claimed by corporate tax...

A: Provision of capital losses:- Losses on sale or exchange of capital assets shall be allowed only to ...

Q: Copy of 65000 Payables Drawings Delivery vehicles Land and Buildings Capital Receivables 15000 10000...

A: Lets understand the meaning of equity. Equity is a capital that is bring by the owner of the company...

Q: The company Dolce Vita SA has hired him as a financial advisor, and as a first function, he has been...

A: Factoring of Accounts Receivable Factoring of accounts receivable which helps to the business entity...

Q: A company uses the periodic inventory system and records purchases net of discounts. On April 1, the...

A: Purchase amount net of discount = P20,000 - 2% = P19,600

Q: Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporatio...

A: Preferred stock Preferred stock, are shares of a corporation's stock with dividends that are paid ou...

Q: Compensation income, Philippines 200,000.00 Rental income, Philippines 100,000.00 Net sales, Philipp...

A: Taxable net income is the amount of earnings on which tax liability is determined. The taxable incom...

Q: The company is desirous of comparing serval financial transactions and possible outcomes to assist i...

Q: On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination res...

A: The goodwill (or) gain on bargain purchase will be considered as full goodwill (or) Full gain on bar...

Q: 1 On December 31, 200C, the partnership of Hue and Teng realized a profit of P 225,000. The capital ...

A: Interest on capital of Hue = P20,000 x 12% x 1012= P2,000 Interest on capital of Teng = P50,000 x 12...

Q: Bonds Payable has a balance of $1,135,000 and Discount on Bonds Payable has a balance of $11,350. If...

A: The discount on bond is an expense for the issuer which denotes the lesser amount that the issuer re...

Q: ontribution Margin olly Company sells 32,000 units at $39 per unit. Variable costs are $29.25 per un...

A: Contribution is the difference between the sales and the marginal cost (Variable cost) of sales and ...

Q: Prob 7 The Chill Sea Corporation engaged the services of Herr Burt & Co., where you serve as the aud...

Q: ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year...

A: Carrying amount of bonds with XYZ = P1075000 75% x 1075000 =P806250

Q: A company lends its supplier $154,000 for 3 years at a 10% annual interest rate. Interest payments a...

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....

Q: Sheffield Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning De...

A: PV Table for 9% Period Discount rate @9% 0 1 1 0.9174 2 0.8417 3 0.7722 4 0.7084 5 0....

Q: In this scenario, you are presented with the company’s financial records. This activity requires vig...

A: You have posted multiple questions, s as per Bartleby policy, only the first question is answered. I...

Q: You own Lettuce Turnip the Beet, Inc., a vegetarian catering company. You have been hired by a loca...

A: To separate the fixed and the variable cost with the limited data, high and low method is best suita...

Q: Complete a locational cost-volume analysis graphically and mathematically

A: Locational cost volume analysis is way to find the volume of production at which the company break e...

Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize th...

A: Share refers to the smallest unit of the total capital of an entity.

Q: Which of the following set of taxes are prohibited? I. Imposition at the same time of income tax and...

A: Income tax is direct tax and value added tax is indirect tax so direct and indirect tax can be impos...

Q: On February 2018, Mr. and Mrs.Joso donated a conjugal parcel of land to their son who was getting ma...

A: Net taxable value of gift = fair market value of property at the time of donation less mortgage amou...

Q: The company is desirous of comparing serval financial transactions and possible outcomes to assist i...

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Impairment Amando Bacot purchases equipment for $10,000 on January 1, 2022. The equipment has a resi...

A: The question is related to Impairment of Assets. The Impairment Loss is calculated as under Impair...

Q: The company is desirous of comparing serval financial transactions and possible outcomes to assist i...

A: Journal entry is the first step in recording financial transactions in the books of company. It must...

Q: Lamar Corporation purchased land for $147,000. Later in the year, the company sold land with a book ...

A: CASH FLOW STATEMENT IS A FINANCIAL STATEMENT THAT PROVIDES DATA FOR ALL CASH INFLOWS AND CASH OUTFLO...

Q: Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: ...

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. % ar...

Q: Amy Dyken, controller at Whispering Pharmaceutical Industries, a public company, is currently prepar...

A: Convertible Bond: A convertible bond, convertible note, or convertible obligation is a kind of bond ...

Q: You have the following information for Metlock, Inc. for the month ended October 31, 2022. Metlock u...

A: Inventory Valuation Methods - Inventory valuation involve FIFO Method, LIFO Method and Average Cost ...

Q: Depreciation for Partial Periods Bean Delivery Company purchased a new delivery truck for $42,000 on...

A: Depreciation Expense - Depreciation Expense is calculated to account the use, wear and tear, obsoles...

Q: The direct materials budget shows the following: Units to be produced 5000 Direct materials pounds r...

A: The direct material per unit will be total direct materials pound required for production divided by...

Q: Sadie May has decided to start a business where she will sell a single line of high heel shoes. Sadi...

A: Breakeven Point: The breakeven point is the level of creation at which the costs of creation are ide...

Q: Q5)Poles Apart purchased snowboards at a cost of $345 and marks them up by 35% of the selling price....

A: Regular selling price is the price at which the entity is willing to sale the goods at an arm's leng...

Q: if FIFO method) TK Co. manufactures a single product that goes through two processes, mixing and coo...

A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...

Q: he activity in the credit card account of Mara for one billing period shows the following transactio...

A: The activity in the credit card account of Mara for one billing period shows the following transac...

Q: Exercise 9-11B Record bonds issued at a discount and related semiannual interest (LO9-6) [The follow...

A: Bonds are instrument which is issued by the issuer to raise funds and these can be issued either at ...

Q: Entries for Bonds Payable and Installment Note Transactions The following transactions were complet...

A: A journal entry is the first step—and an essential function—of the accounting process. Journal entri...

Question

13. The partnership has the following accounting amounts:
Sales
70,000 Interest paid to banks
2,000
Cost of goods sold
40,000 Partners' withdrawals
8,000
Operating expenses
10,000 Salary allocations to partners
13,000
The partnership net income (loss) is:
C. 5,000
D. (3,000)
А. 20,000
В. 18,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Partnership Accounting:

VIEW

Solution:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50% each. Chris contributes $30,000 to the partnership for a 1/3 share. What amount should the partnership record as a bonus to Chris? A. $20,000 B. $15,000 C. $10.500 D. $5,000
The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50%. Chris contributes $90,000 to the partnership for a 1/3 share. What amount should the partnership record as an individual bonus to each of the old partners? A. $10,000 B. $7,000 C. $3,000 D. $20,000
Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50%. Chris contributes $30,000 to the partnership for a 1/3 share. What amount should Thandies capital balance in the partnership be? A. $60,000 B. $50,000 C. $45,000 D. $30,000
Juan contributes marketable securities to a partnership. The book value of the securities is $7,000 and they have a current market value of $10,000. What amount should the partnership record in Juans Capital account due to this contribution? A. $10,000 B. $7,000 C. $3,000 D. none of the above
The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after Chloe receives a $10,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $ 30,000 B. $ 6,000 C. ($10,000)
The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60,000 investment. The partners new agreement will share profit and loss in a 1:3 ratio.
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.