Tuesday
October 21, 2014

Homework Help: Accounting 102

Posted by Precious on Friday, February 15, 2008 at 4:36pm.

Turner and Isham agreed to form a partnership. Turner contributed $ 200,000 in cash, and Isham contributed assets with a fair market value of $ 400,000. The partnership, in its initial year, reported net income of $ 120,000. Assume that the partnership agreement states that Turner and Isham are to receive salaries of $ 20,000 and $ 24,000, respectively; that Turner is to receive 6 percent interest on his capital balance at the beginning of the year; and that the remainder of income and losses are to be shared equally. Calculate the distribution of the income or losses under the following conditions:
1.Income totals $ 120,000.
2.Income totals $ 48,000.
3.There is a loss of $ 2,000.
4.There is a loss of $ 40,000.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

acc. 205 - partner investments, journal entries. The LP partnership was formed ...
Accounting - Needs the entries for the following scenarios: Capital accounts as ...
Accounting - For the current year, Sheila Jones had adjusted gross income of $...
Advanced accounting - The balance sheets of Petrello Company and Sanchez Company...
Accounting - ____ 2. As part of the initial investment, Omar contributes ...
accounting - Partners Smith and Jones decide to close their business and share ...
Account - For the current year, Sheila Jones had adjusted gross income of $100,...
tax - For the current year, Sheila Jones had adjusted gross income of $100,000. ...
accounting - A company was recently formed with $ 50,000 cash contributed to the...
Math - On March 31, 2009, Wolfson Corporation acquired all of the outstanding ...

Search
Members