Dallas and Weiss formed a partnership to manage rental properties, by investing $164,000 and $246,000, respectively. During its first year, the partnership recorded profit of $514,000.Required:Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses:a. The partners failed to agree on a method of sharing profit. b. The partners agreed to share profits and losses in proportion to their initial investments. c. The partners agreed to share profit by allowing a $156,000 per year salary allowance to Dallas, an $86,000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Enter "0" when the answer is zero.) Prepare caicuiations snowing now tne proTit snouia be aiocated tne partnersS under eacn or the foiOwing pians Tor sand losses:a. The partners failed to agree on a method of sharing profit.Share toShare toTotalDallasWeissb. The partners agreed to share profits and losses in proportion to their initial investments.Share toDallasShare toTotalWeiss HelpSavc. The partners agreed to share profit by allowing a $156,000 per year salary allowance to Dallas, an $86,000 per yearallowance to Weiss, 12% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Ente-answer is zero.)Share toDallasShare toTotalWeissTotal salaries and interest allocation24$Balance of profit2$Balance allocated equally:Balance of profitShares of each partner2$$42$

The sharing of profit and loss in accordance with the profit and loss sharing ratio.it completely…

Dallas and Weiss formed a partnership to manage rental properties, by investing $164,000 and $246,000, respectively. During its first year, the partnership recorded profit of $514,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. b. The partners agreed to share profits and losses in proportion to their initial investments. c. The partners agreed to share profit by allowing a $156,000 per year salary allowance to Dallas, an $86,000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the

Dallas and Weiss formed a partnership to manage rental properties, by investing $164,000 and $246,000, respectively. During its first year, the partnership recorded profit of $514,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. b. The partners agreed to share profits and losses in proportion to their initial investments. c. The partners agreed to share profit by allowing a $156,000 per year salary allowance to Dallas, an $86,000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the

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 3MC

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Which of the following case where the losses are to be shared by the partners in their profit sharing ratio? • a. Dissolution of Firm b. None of the options are correct c Profit and Loss d. Revaluation
7. The share of loss of partners will appear: a.On the credit side of the partners+IBk- capital account b.On the debit side of the profit and loss appropriation account c.Neither credit side nor debit side of the profit and loss appropriation account d.On the credit side of the profit and loss appropriation account
Q9 What information will be of interest to the partners of a joint venture at the closing of the undertaking? Select one: a. The ultimate amount to be distributed according to the profit-sharing ratio. b. Profits were realised by the venture prior to any compensation to the partners for their contributions c. Amount do the partners receive in total, i.e. from compensation for services rendered, as well as from their profit share from the venture. d. All of the given options are correct.
Statement I: The estimated deficiency to unsecured claims represents the amount unrecoverable by the creditors. Statement II: In the case of corporate liquidation, historical cost is a material valuation for assets. O Both statements are correct O Both statements are incorrect O Only Statement I is correct O Only Statement I| is correct
Statement I: When a Partnership's operations resulted to a net loss, a partner who contributed legal services, shall have share of loss in accordance to the losses agreement. However, if there is no losses agreement, he shall not be liable to any loss.Statement II: All withdrawals and investments shall be considered when computing for the weighted average capital balance. Group of answer choices S1 is true; S2 is false Both statements are true S1 is false; S2 is true Both statements are false
1. Jag, Lee and Bench are partners having the following capital balances of P11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. How much is the loss absorption capacity of Lee?Required to answer. Single choice. a. P13,000 b. P45,500 c. P26,000 d. cannot be determined 2. Lebron and Wade, partners who share profits and losses equally decided to liquidate their partnership by installment. The statement of financial position showed Cash – P 35,000; P Liabilities – P 20,000; Lebron, Capital – P71,000; and Wade, Capital – P 54,000. Liquidation expenses amounted to P 10,000. How much cash can be distributed safely toeach partner at this point? a. Lebron-P3,000; Wade- P0 b. Lebron-P5,000; Wade-P500 c. Lebron-P5,000; Wade-0 d. Lebron- P5,000; Wade- P1,0003. On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in the treasury, 10,000 shares subscribed and 10,000 5% Preference Shares, cumulative issued, P 100…
Statement : Non-cash contributions of the partners should be recorded at agreed value in the absence of fair market value. Statemernt i: Interest ratio is the means of dividing the profit and losses among the partners. 0 Both statements are incorrect O Both staterments are correct OOnly Statementls correct Only Statement ll is correct
X, Y and Z are partners having the following capital balances of P 11,200, P13,000 and P5,800 respectively Profits and losses are shared 4:21 How much is the loss absorption capacity of Y?
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9. The share of profit of partners will appear: a. On the credit side of the partners+IBk- capital account b. Neither credit side nor debit side of the profit and loss appropriation account c. On the credit side of the profit and loss appropriation account d. On the debit side of the profit and loss appropriation account
16. Admission of a new partner by investment, where the total agreed capital is greater than total contributed capital, can result to a. Bonus to the old partners and undervaluation of assets closed to old partners’ capital b. Bonus to the new partner and undervaluation of assets closed to old partners’ capital C. Neither a nor b D. Either a or b E. Answer not given
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