ect Registration for ACCT 211ACCT211N032018SP Principles of

ect Registration for ACCT 211-ACCT-211-N03-2018SP Principles of Accounting I-Oison aded because it was using significant memory 2 Homework Problems Required information The following information applies to the questions displayed below. of 3 Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $67500, $262,500, and $420,000, respectively. They predict annual partnership net income of $450,000 and are considering the folowing aternative plans of sharing income and loss: (al equally, (D) in the ratio of their initial capital investments: or (c) salary llowances of $80,000 to Mo, $60,000 to Lu, and $90,000 to Bart, interest allowances of 10% on their initial capital investments and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb 2. Prepare a statement of partners equity showing the allocation of income to the partners assuming they agree to use plan (c). that income earned is $209.000, and that Mo, Lu, and Barb withdraw $34,000, $48.000, and $64,000, respectively, at year-end. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values) Statement of Partners\" Equity 4

Solution

Mo Lu Barb Total Intial Partnerships Investment 67500 262500 420000 750000 Net Income Salary allowances 80000 60000 90000 230000 Interest allowances 10% of intial inv 6750 26250 42000 75000 Balance allocated Rato 20:40:40 -19200 -38400 -38400 -96000 Total Net Income 209000 Total 135050 310350 513600 959000 Less Withdrawal -34000 -48000 -64000 -146000 Ending capital balances 101050 262350 449600 813000