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After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of the Mitt & Ryan partnership is $28.210. The partnership agreement specifies that profits and losses will be shared using the following formula. 1. Allocate profit by a 5% Interest allowance on the partners' beginning capital balances. 2 Allocate salary allowances of $20,280 to Mitt and $14,690 to Ryan 3. Remaining profit (loss) is to be shared on a ratio of 8:5 At the beginning of the year, Mitt's capital account had a balance of $33.800 and Ryan's capital account had a balance of $35,100. Mitt withdrew $1.130 cash per month while Ryan withdrew $1,360 per month from the partnership. During the year, Mitt made an additional investment of $5,650 cash into the partnership.

After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of the Mitt & Ryan partnership is $28.210. The partnership agreement specifies that profits and losses will be shared using the following formula. 1. Allocate profit by a 5% Interest allowance on the partners' beginning capital balances. 2 Allocate salary allowances of $20,280 to Mitt and $14,690 to Ryan 3. Remaining profit (loss) is to be shared on a ratio of 8:5 At the beginning of the year, Mitt's capital account had a balance of $33.800 and Ryan's capital account had a balance of $35,100. Mitt withdrew $1.130 cash per month while Ryan withdrew $1,360 per month from the partnership. During the year, Mitt made an additional investment of $5,650 cash into the partnership.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 7SPA
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After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of the Mitt & Ryan partnership is $28.210. The partnership agreement specifies that profits and losses will be shared using the following formula. 1. Allocate profit by a 5% interest allowance on the partners' beginning capital balances. 2 Allocate salary allowances of $20,280 to Mitt and $14,690 to Ryan. 3. Remaining profit (loss) is to be shared on a ratio of 8:5 At the beginning of the year, Mitt's capital account had a balance of $33,800 and Ryan's capital account had a balance of $35,100. Mitt withdrew $1.130 cash per month while Ryan withdrew $1,360 per month from the partnership. During the year, Mitt made an additional investment of $5,650 cash into the partnership. Prepare a schedule to show how the profit or loss will be allocated to the two partners. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Profit Interest allowance Mitt Ryan Total Profit remaining for allocation Salary allowance Mitt Ryan Total Mitt MITT & RYAN Division of Profit HOD DONO Ryan
Transcribed Image Text:After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of the Mitt & Ryan partnership is $28.210. The partnership agreement specifies that profits and losses will be shared using the following formula. 1. Allocate profit by a 5% interest allowance on the partners' beginning capital balances. 2 Allocate salary allowances of $20,280 to Mitt and $14,690 to Ryan. 3. Remaining profit (loss) is to be shared on a ratio of 8:5 At the beginning of the year, Mitt's capital account had a balance of $33,800 and Ryan's capital account had a balance of $35,100. Mitt withdrew $1.130 cash per month while Ryan withdrew $1,360 per month from the partnership. During the year, Mitt made an additional investment of $5,650 cash into the partnership. Prepare a schedule to show how the profit or loss will be allocated to the two partners. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Profit Interest allowance Mitt Ryan Total Profit remaining for allocation Salary allowance Mitt Ryan Total Mitt MITT & RYAN Division of Profit HOD DONO Ryan
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