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REV AFAR2 - Partnership (Operation)

This document contains 10 accounting problems showing income statements, capital balances, and distributions of profits for various partnerships and individuals. Problem 1 shows the income and capital contributions for Lebron James and totals. Problem 2 calculates interest income using average capital balances for three partners.

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Richard Lamagna
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40 views10 pages

REV AFAR2 - Partnership (Operation)

This document contains 10 accounting problems showing income statements, capital balances, and distributions of profits for various partnerships and individuals. Problem 1 shows the income and capital contributions for Lebron James and totals. Problem 2 calculates interest income using average capital balances for three partners.

Uploaded by

Richard Lamagna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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LAMAGNA, RICHARD J.

BSA 42E1
REV 3

PROBLEM 1

LEBRON JAMES TOTAL


NET INCOME 180,000.00
SALARY 120,000.00 80,000.00 200,000.00
REMAINDER - 10,000.00 - 10,000.00 - 20,000.00
TOTAL SHARE IN PROFIT 110,000.00 70,000.00 180,000.00

Entry:
Income Summary 180,000.00
Lebron, Capital 10,000.00
James, Capital 10,000.00
Lebron, Capital 110,000.00
James, Capital 70,000.00
PROBLEM 2

JJ KK LL TOTAL
AVE. CAPITAL BALANCE 100,000.00 200,000.00 300,000.00
600,000.00
TOTAL INCOME 90,000.00
INTEREST (15% OF ACB) 15,000.00 30,000.00 45,000.00 90,000.00
BONUS 18,000.00 - - 18,000.00
REMAINDER - 6,000.00 - 6,000.00 - 6,000.00 - 18,000.00
TOTAL SHARE IN PROFIT 27,000.00 24,000.00 39,000.00 90,000.00
PROBLEM 3

LL MM PP TOTAL
CAPITAL BALANCES 40,000.00 25,000.00 15,000.00 80,000.00
INTEREST 2,000.00 1,250.00 750.00 4,000.00
SALARY 8,500.00 - - 8,500.00
AGGREAGTE SHARE (20,000) 9,500.00 5,700.00 5,700.00 19,000.00
MIN. SHARE (14,000) 7,050.00 - 7,050.00
SHOULD BE PROFIT 20,000.00 14,000.00 6,450.00 38,550.00
PROBLEM 4

RR SS TT TOTAL
NET INCOME (200K - 100K) 100,000.00
EXCESS (DEFICIENCY) FROM
GUARANTEE 15,000.00 - 10,000.00 - 5,000.00
OPERATING EXPENSES 50,000.00 37,500.00 12,500.00 100,000.00
REMAINDER - 2,500.00 - 1,875.00 - 625.00 - 5,000.00
TOTAL SHARE IN PROFIT 62,500.00 25,625.00 11,875.00 100,000.00
PROBLEM 5

JJ RR TOTAL
INCOME BEFORE
EXTRAORDINARY INCOME 57,600.00
BONUS - 9,600.00 9,600.00
REMAINDER BEFORE EOI 24,000.00 24,000.00 48,000.00
EXTRAORDINARY INCOME 4,800.00 7,200.00 12,000.00
SHARE IN INCOME 28,800.00 40,800.00 69,600.00
PROBLEM 6

DV JE FR TOTAL
LOSS - 62,500.00
EXCESS (DEF)FROM AVE. INVEST. 15,000.00 3,750.00 - 7,500.00 11,250.00
REMAINDER - 36,875.00 - 22,125.00 - 14,750.00 - 73,750.00
SHARE IN LOSS - 21,875.00 - 18,375.00 - 22,250.00 - 62,500.00
PROBLEM 7
PROBLEM 8

SIN TAN UY TOTAL


CAPITAL BAL 110,000.00 80,000.00 110,000.00 300,000.00

1ST YR LOSS - 20,000.00


SALARY 20,000.00 - 10,000.00 30,000.00
INTEREST 11,000.00 8,000.00 11,000.00 30,000.00
REMAINDER - 40,000.00 - 16,000.00 - 24,000.00 - 80,000.00
BALANCES - 9,000.00 - 8,000.00 - 3,000.00 - 20,000.00
CAPITAL BALANCES 101,000.00 72,000.00 107,000.00 280,000.00
WITHDRAWAL - 10,000.00 - 10,000.00 - 10,000.00 - 30,000.00
CAPITAL BALANCES, BEG OF 2ND YR 91,000.00 62,000.00 97,000.00 250,000.00

2ND YR INCOME 40,000.00


SALARY 20,000.00 - 10,000.00 30,000.00
INTEREST 9,100.00 6,200.00 9,700.00 25,000.00
REMAINDER - 7,500.00 - 3,000.00 - 4,500.00 - 15,000.00
BALANCES 21,600.00 3,200.00 15,200.00 40,000.00
CAPITAL BALANCES 112,600.00 65,200.00 112,200.00 290,000.00
WITHDRAWAL - 10,000.00 - 10,000.00 - 10,000.00 - 30,000.00
CAPITAL BALANCES, END OF 2ND YR 124,200.00 58,400.00 117,400.00 300,000.00
PROBLEM 9
KEN LEN MON TOTAL
CAPITAL BAL 100,000.00 100,000.00 100,000.00 300,000.00
CAPITAL WITHDRAWAL - 20,000.00 - - - 20,000.00
BALANCES 80,000.00 100,000.00 100,000.00 280,000.00

2022 INCOME 120,000.00


SALARY 60,000.00 60,000.00
REMAINDER 20,000.00 20,000.00 20,000.00 60,000.00
BALANCES 100,000.00 120,000.00 180,000.00 400,000.00
INVESTMENT (WITHDRAWAL) - 20,000.00 40,000.00 - 20,000.00
CAPITAL BALANCES, BEG 80,000.00 160,000.00 180,000.00 420,000.00

2023 INCOME 120,000.00


SALARY 60,000.00 60,000.00
REMAINDER 11,428.57 22,857.14 25,714.29 60,000.00
CAPITAL BALANCES, END 91,428.57 182,857.14 265,714.29 540,000.00

INCOME:
TOTAL CAPITAL, 2023 647,000 - 147,500 = 500,000
TOTAL CAPITAL, 2022 30,000 + 40,000 - 80,000 = 260,000
NET PROFIT ( 2YRS) 500,000 - 260,000 = 240,000
PROBLEM 10

GABRIEL HARRY TOTAL


NET INCOME 132,000.00
SALARIES 35,000.00 40,000.00 75,000.00
BONUS 12,000.00 12,000.00
INTEREST 9,900.00 4,400.00 14,300.00
REMAINDER 12,280.00 18,420.00 30,700.00
SHARE IN PROFIT 69,180.00 62,820.00 132,000.00

BONUS
B = 10% (INCOME - BONUS)
B = 10% (132,000 - B)
B = 13,200 - .1B
13,200
1.1B
B = 12,000

WEIGHTED AVERAGE OF CAPITAL BAL

BALANCES OUTSTANDING WA
GABRIEL:
BEG 120,000.00 1 120,000.00
APRIL 1 20,000.00 3/4 15,000.00
JUNE 1 - 15,000.00 7/12 - 8,750.00
SEPT 1 30,000.00 1/3 10,000.00
NOV 1 - 15,000.00 1/6 - 2,500.00
TOTAL 133,750.00
EXCESS IN DRAWINGS (20K - 10K) - 10,000.00
END 123,750.00

HARRY:
BEG 60,000.00 1 60,000.00
JUNE 1 - 20,000.00 7/12 - 11,666.67
NOV 1 40,000.00 1/6 6,666.67
END 55,000.00

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