Jensen and Stafford began a partnership to start a hardwood flooring installation business, by investing $178,000...
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Jensen and Stafford began a partnership to start a hardwood flooring installation business, by investing $178,000 and $218,000, respectively. They agreed to share profits/(losses) by providing yearly salary allowances of $168,000 to Jensen and $93,000 to Stafford, 25% interest allowances on their investments, and sharing the balance 3:2. Required: 1. Determine each partner's share if the first-year profit was $438,000. Share to Jensen Share to Stafford Total Total salaries and interest allocation Balance of profit Remainder 3:2 ratio: Balance of profit Shares of each partner $ $ 0 $ 0 $ 0 O $ $ 0 0 0 0 2. Independent of (1), determine each partner's share if the first-year loss was $113,000. (Negative answers should be indicated by a minus sign.) Share to Jensen Share to Stafford Total Total salaries and interest allocation Balance of loss Remainder 3:2 ratio: Balance of loss Shares of each partner $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 Jensen and Stafford began a partnership to start a hardwood flooring installation business, by investing $178,000 and $218,000, respectively. They agreed to share profits/(losses) by providing yearly salary allowances of $168,000 to Jensen and $93,000 to Stafford, 25% interest allowances on their investments, and sharing the balance 3:2. Required: 1. Determine each partner's share if the first-year profit was $438,000. Share to Jensen Share to Stafford Total Total salaries and interest allocation Balance of profit Remainder 3:2 ratio: Balance of profit Shares of each partner $ $ 0 $ 0 $ 0 O $ $ 0 0 0 0 2. Independent of (1), determine each partner's share if the first-year loss was $113,000. (Negative answers should be indicated by a minus sign.) Share to Jensen Share to Stafford Total Total salaries and interest allocation Balance of loss Remainder 3:2 ratio: Balance of loss Shares of each partner $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
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