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Problem 12-02A Watts and Thomas
Problem 12-02A Watts and Thomas
Class:
Problem 12-02A
Watts and Thomas
Preliminary Calculations
Plans a and c Percentages based on initial investments:
Watts
Thomas
Plan b
Interest allowances
Watts
Thomas
Income (Loss)
Sharing
Plan
Calculations
(a)
40% x $18,000 loss
Year 1
(b)
(c)
Salary allowance
Totals
(d)
Salary allowance
Interest allowances
50% x ($18,000 loss +
$36,000 salary + $7,500 interest)
Watts
Thomas
Student Name:
Class:
Problem 12-02A
Income (Loss)
Sharing
Plan
Calculations
(a)
40% x $45,000 income
Year 2
Watts
Thomas
Watts
Thomas
(b)
(c)
Salary allowance
Totals
(d)
Salary allowance
Interest allowances
Totals
Income (Loss)
Sharing
Plan
Calculations
(a)
40% x $75,000 income
(b)
(c)
Salary allowance
Totals
(d)
Salary allowance
Interest allowances
Totals
Year 3
$ 30,000
45,000
3,000
3,000
10%
$(18,000)
45,000
75,000
Check figure:
Plan D, Year 1, Thomas's share
$ 9,750
Student Name:
Class:
Problem 12-03A
BBB PARTNERSHIP
Income/Loss
Sharing
Plan
Calculations
Will
a)
$210,000/3
b)
$210,000x($142,500/$475,000)
Trevor
Barb
Totals
Barb
Total
Total allocated
c)
Net income
Salary allowances
Balance of income
Interest allowances
Balance of income
Balance allocated
Balance of income
Shares of partners
BBB PARTNERSHIP
Statement of Partners' Equity
For Year Ended December 31
Will
Beginning capital balances
Plus:
Investments by owners
Net income:
Salary allowances
Interest allowances
Balance allocated equally
Total net income
Total
Less partners' withdrawals
Ending capital balances
Trevor
Student Name:
Class:
Problem 12-03A
BBB PARTNERSHIP
General Journal
Date
Dec. 31
Account Titles
Income Summary
Will Beck, Capital
Trevor Beck, Capital
Barb Beck, Capital
31 Will Beck, Capital
Trevor Beck, Capital
Barb Beck, Capital
Will Beck, Withdrawals
Trevor Beck, Withdrawals
Barb Beck, Withdrawals
Debit
Credit
$142,500
118,750
213,750
210,000
$ 38,000
28,000
43,000
10%
Part 1 data:
Net income for year
$210,000
Part 2 data:
Income earned
Will's withdrawals
Trevor's withdrawals
Barb's withdrawals
$ 87,500
18,000
25,000
34,000
Part 3 data:
Income earned
$ 87,500
Check figure:
Part 2, Barb, Ending Capital
$221,125