Business, 10.12.2021 19:20 giulianna41

Lewis Wardell and Lewis Lomas own Lewis’ Antiques. Their partnership agreement provides for annual salary allowances of $200,000 for Wardell and $180,000 for Lomas, and interest of 10 percent on each partner’s invested capital at the beginning of the year. The remainder of the net income or loss is to be distributed 50 percent to Wardell and 50 percent to Lomas. The partners withdraw their salary allowances monthly. On January 1, 2019, the capital account balances were Wardell, $600,000, and Lomas, $560,000. On December 15, 2019, Lomas made a permanent withdrawal of $55,000. The net income for 2019 was $640,000.INSTRUCTIONS1. Prepare the general journal entry on December 15, 2019, to record the permanent withdrawal by Lomas.2. Prepare the general journal entries on December 31, 2019, to:a. Record the salary allowances for the year. b. Record the interest allowances for the year. c. Record the division of the balance of net income. d. Close the drawing accounts into the capital accounts, assuming that Wardell and Lomas have withdrawn their full salary allowances.3. Prepare a schedule showing the division of net income to the partners as it would appear on the income statement for 2019.4. Prepare a statement of partners’ equities showing the changes that took place in the partners’ capital accounts during 2019.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 22:30

Quantitative problem: you need $20,000 to purchase a used car. your wealthy uncle is willing to lend you the money as an amortized loan. he would like you to make annual payments for 4 years, with the first payment to be made one year from today. he requires a 8% annual return. what will be your annual loan payments? round your answer to the nearest cent. do not round intermediate calculations. $ how much of your first payment will be applied to interest and to principal repayment? round your answer to the nearest cent. do not round intermediate calculations. interest: $ principal repayment

Answers: 1

Answer

Business, 21.06.2019 23:00

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporationsâ€™ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

Answers: 3

Answer

Business, 21.06.2019 23:30

Select the correct answer. the word intestate means that a person has died with or without a will?

Answers: 1

Answer

Business, 22.06.2019 11:10

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value

Answers: 2

Answer

You know the right answer?

Lewis Wardell and Lewis Lomas own Lewis’ Antiques. Their partnership agreement provides for annual s...

Questions