On 01/01/2017 the capital balances in Toshiba company are Saki $130,000 and Turkic $120,000. In 2017 the partnership reports net income of $150,000. The income ratio provides for salary allowances of $60,000 for Saki and $50,000 to Turkic and the remainder in the ratio of 55%: 45%.the journal entry for income distribution is: O a. Debit Income summary $150,000 and credit both Saki capital $82,500 and Turkic capital $67,500 O b. Debit both Saki capital $82,000 and Turkic capital $68,000 and credit Income summary $150,000 O c. Debit Income summary $150,000 and credit both Saki capital $75, 000 and Turkic capital $75, 000 O d. Debit Income summary $150,000 and credit both Saki capital $82, 000 and Turkic capital S68,000
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- Which of the following entities is required to report on the accrual basis? An accounting firm operating as a Personal Service Corporation. A manufacturing business with $30 million of gross receipts operating as a regular C corporation. A corporation engaged in tropical fruit farming in Southern California. A partnership with gross receipts of $13 million and all of the partners are individuals with a December year-end.Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________Hosea, Riziki and Zarika are trading as Horizon enterprises. They share profits and losses in the ratio of 2:2:1 respectively. The following is the statement of comprehensive income for the partnership for the year ended 31 December 2018: Shs. Shs. Sales Opening stock Purchases Closing stock Gross profit Less: Salaries Repairs and maintenance Interest Goodwill Depreciation Mortgage repayment Insurance Auditee Legal fee Equipment purchase Rent and rates Net profit 300,000 4,000,000 (600,000) 900,000 100,000 480,000 198,000 142,000 200,000 384,220 315,780 100,000 200,000 18,0000 8,000,000 (3700,000) 4,300,000 (3,200,000) 1,100,000 Additional information 1. Opening inventory and closing inventory were overvalued by 30%. 2. Included in interest expense is interest on capital to partners of Sh. 80,000. This amount was to be shared in the profit sharing ratio. The balance of interest relates to an…
- On June 30, 2014, the Able, Baker, and Charlie partnership had the following fiscal year-end balance sheet: Cash $ 8,000 Accounts payable $ 14,000 Accounts receivable 12,000 Loan from Charlie 10,000 Inventory 28,000 Able, capital (20%) 28,000 Plant assets-net 24,000 Baker, capital (20%) 20,000 Loan to Able 12,000 Charlie,capital (60%) 12,000 Total assets $ 84,000 Total liab./equity $ 84,000 The percentages shown are the residual profit and loss sharing ratios. The partners dissolved the partnership on July 1, 2014, and began the liquidation process. During July the…The balance sheet for Coney, Honey, and Money partnership shows the following information as of December 31, 2015;Cash P 40,000 Liabilities P 100,000Other assets 560,000 Coney, loan 50,000 Coney, capital 250,000 Honey, capital 140,000 Money, capital 60,000 P 600,000 P 600,000 Profit and loss ratio is 3:2:1 for Coney, Honey, and Money, respectively. Other assets were realized as follows:Date Cash Received Book ValueJanuary 2016 P 120,000 P 180,000February 2016 70,000 154,000March 2016 250,000…The balance sheet for Coney, Honey, and Money partnership shows the following information as of December 31, 2015;Cash P 40,000 Liabilities P 100,000Other assets 560,000 Coney, loan 50,000 Coney, capital 250,000 Honey, capital 140,000 Money, capital 60,000 P 600,000 P 600,000 Profit and loss ratio is 3:2:1 for Coney, Honey, and Money, respectively. Other assets were realized as follows:Date Cash Received Book ValueJanuary 2016 P 120,000 P 180,000February 2016 70,000 154,000March 2016 250,000…
- The balance sheet for Coney, Honey, and Money partnership shows the following information as of December 31, 2015;Cash P 40,000 Liabilities P 100,000Other assets 560,000 Coney, loan 50,000 Coney, capital 250,000 Honey, capital 140,000 Money, capital 60,000 P 600,000 P 600,000 Profit and loss ratio is 3:2:1 for Coney, Honey, and Money, respectively. Other assets were realized as follows:Date Cash Received Book ValueJanuary 2016 P 120,000 P 180,000February 2016 70,000 154,000March 2016 250,000…On January 1, 2023, AA and BB formed AB partnership with a total agreed capital of P5,000,000 and a capital interest ratio of 70:30. The following were ascertained during the year as to distribution of profits and losses: • AA will receive quarterly salaries of P100,000 5% interest on initial capital will be provided Any remainder will be shared by their capital contribution ratio At the end of the year, the partnership had a P500,000 credit balance in its income summary account. How much is the share of AA in the partnership income (loss)?AA and BB are partners engaged in a manufacturing business. Transactions affecting the partners’ capital accounts in 2022 are as follows: AA BB Debit Credit Debit Credit Beg. Balance P250,000 P350,000 April 1 150,000 100,000 June 30 125,000 250,000 September 1 225,000 300,000 October 1 350,000 200,000 The income summary has a debit balance of P225,000. Agreement between AA and BB are as follows: Interest on average capital at 8%. Salaries of P125,000 and P175,000 are given to AA and BB, respectively. Bonus to BB at 25% of net income after deducting interest and salaries but before deducting bonus. Balance is to be divided equally. How much is the net increase (decrease) in BB’s capital account in 2022?
- YES Partnership started operations on January 2, 2016 with the following capital balances: Yves P88,000 Ernest 64,000 Serge 90,000 Their profit and loss agreement has the following provisions: • Yves will be given an annual salary of P16,000 and Serge P8,000 • All partners will be given 10% interest on beginning capital balances every year • The balance of the profit, or the loss, will be divided on a 2:5:3 to Yves, Ernest and Serge, respectively. In 2016, partnership operations resulted in a net loss of P16,000, while in 2017, it was a net profit of P32,000. All partners withdrew the maximum amount of P8,000 each year. Required: Compute for the following: 1. Share in Net Profit or Net Loss for 2016 and 2017 2. Ending Capital of each partner for 2016 and 2017 • Net income before salary interest bonus (NIBSIB) • Net income after salary interest bonus (NIASIB) • Net income before salary interest after bonus (NIBSIAB) • Net income after salary interest…Bedin, Ceyla and Deris have been in a partnership for a number of years, sharing profits in the ratio of 5:3:2, respectively. The statement of financial position of the business as at 31 December 2013 is as follows: Statement of Financial Position As at 31 December 2013 RM RM ASSETS Non-Current Assets Premises 80,000 Equipment 50,000 Vehicles 30,000 160,000 Current Assets Inventories 40,000 Debtors 50,000 Bank 112,000 202,000 TOTAL ASSETS 362,000 LIABILITIES & OWNERS EQUITY Non-Current Liabilities Loan from Bedin 8,000 Loan from Finance Company 20,000 28,000 Current Liabilities Creditors 42,000 Bank Overdraft 32,000 74,000 Owners Equity Capital Accounts Bedin 160,000 Ceyla 60,000 Deris 20,000 240,000 Current Accounts…Rodgers and Winter had capital balances of $60,000 and $90,000, respectively, at the beginning of the current fiscal year. The articles of partnership provide for salary allowances of $25,000 and $30,000, respectively; an allowance of interest at 12% on the capital balances at the beginning of the year; and the remaining net income divided equally. Net income for the current year was $110,000. a. Present the Division of net income section of the income statement for the current year. Net income $110,000 Rodgers Winter Total Division of net income: Salary allowance $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Interest allowance fill in the blank 4 fill in the blank 5 fill in the blank 6 Total fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 13 Net income $fill in the blank 14 $fill in the…