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A partnership began its first year of operations...

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A partnership began its first year of operations with the following capital balances: Young, Capital: $143,000 Eaton, Capital: $104,000 Thurman, Capital: $143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman. Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year. The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively. Each partner withdrew $13,000 per year. Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year. 26. What was Young's total share of net loss for the first year? A. $3,900 loss. B. $11,700 loss. C. $10,400 loss. D. $24,700 loss. E. $9,100 loss. AACSB: Analytic AICPA FN: Measurement Bloom's: Application Difficulty: Medium Learning Objective: 09-06 Allocate income to partners when interest and/or salary factors are included. 27. What was Eaton's total share of net loss for the first year? A. $3,900 loss. B. $11,700 loss. C. $10,400 loss. D. $24,700 loss. E. $9,100 loss. AACSB: Analytic AICPA FN: Measurement Bloom's: Application Difficulty: Medium Learning Objective: 09-06 Allocate income to partners when interest and/or salary factors are included. 28. What was Thurman's total share of net loss for the first year? A. $3,900 loss. B. $11,700 loss. C. $10,400 loss. D. $24,700 loss. E. $9,100 loss. AACSB: Analytic AICPA FN: Measurement Bloom's: Application Difficulty: Medium Learning Objective: 09-06 Allocate income to partners when interest and/or salary factors are included. 29. What was the balance in Young's Capital account at the end of the first year? A. $120,900. B. $118,300. C. $126,100. D. $80,600. E. $111,500.

 

Paper#8031 | Written in 18-Jul-2015

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