Question : 67. Escobar and Woods partners who share profits and losses in : 1197651

 

67. Escobar and Woods are partners who share profits and losses in the ratio of 60 and 40 percent, respectively. The partnership agreement provides that each will be paid a yearly salary of $18,000. The salaries were paid to the partners during 2013 and were charged to the partners’ drawing accounts. The Income Summary account has a credit balance of $60,000 after revenue and expense accounts are closed at the end of the year.

 

1. What amount of net income or loss will be allocated to Escobar?

2. What amount of net income or loss will be allocated to Woods?

 

 

 

 

 

 

 

68. Madison and Hamilton are partners who share profits and losses equally. The partnership agreement provides that Madison will be paid an annual salary of $40,000 and Hamilton will be paid an annual salary of $30,000. The salaries were paid to the partners during 2013 and were charged to the partners’ drawing accounts. The Income Summary account has a credit balance of $80,000 after revenue and expense accounts are closed at the end of the year.

 

1. What amount of net income or loss will be allocated to Madison?

2. What amount of net income or loss will be allocated to Hamilton?

 

 

 

 

 

 

 

69. Lenik and Olsen are partners who share profits and losses in the ratio of 60 and 40 percent, respectively. The partnership agreement provides that each will be paid a yearly salary of $19,000. The salaries were paid to the partners during 2013 and were charged to the partners’ drawing accounts. The Income Summary account has a debit balance of $4,000 after revenue and expense accounts are closed at the end of the year.

 

1. What amount of net income or loss will be allocated to Lenik?

2. What amount of net income or loss will be allocated to Olsen?

 

 

 

 

 

 

 

70. Mavis and Roxanne are partners who share profits and losses equally. The partnership agreement provides that Mavis will be paid an annual salary of $54,000 and Roxanne will be paid an annual salary of $36,000. The salaries were paid to the partners during 2013 and were charged to the partners’ drawing accounts. The Income Summary account has a debit balance of $10,000 after revenue and expense accounts are closed at the end of the year.

 

1. What amount of net income or loss will be allocated to Mavis?

2. What amount of net income or loss will be allocated to Roxanne?

 

 

 

 

 

 

 

71. Norton and Morris are partners. The partnership agreement provides that Norton will receive a salary of $26,000 and Morris will receive a salary of $20,000. These salaries were paid to the partners during 2013 and were charged to the partners’ drawing accounts. Both partners also receive 10 percent on their capital balances at the beginning of the year. The balance of any remaining profits or losses is divided equally. The beginning capital account balances for 2013 were Norton, $100,000, and Morris, $80,000. At the end of the year, the partnership has a net income of $60,000.

 

1. What amount of net income or loss will be allocated to Norton?

2. What amount of net income or loss will be allocated to Morris?

 

 

 

 

 

 

 

 

 

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