Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 19. rodgers and winter had capital balances of $60

19. Rodgers and Winter had capital balances of $60,000 and $90,000, respectively, at the beginning of the...

Free

60.1K

Verified Solution

Question

Accounting

19.

Rodgers and Winter had capital balances of $60,000 and $90,000,respectively, at the beginning of the current fiscal year. Thearticles of partnership provide for salary allowances of $25,000and $30,000, respectively; an allowance of interest at 12% on thecapital balances at the beginning of the year; and the remainingnet income divided equally. Net income for the current year was$110,000.

a. Present the Division of net income sectionof the income statement for the current year.

Net income$110,000
RodgersWinterTotal
Division of net income:
Salary allowance$$$
Interest allowance
Total
Net income$$$

b. Assuming that the net income had been$65,000 instead of $110,000, present the Division of net incomesection of the income statement for the current year.

Net income$65,000
RodgersWinterTotal
Division of net income:
Salary allowance$$$
Interest allowance
    Total
Net income$$$

Answer & Explanation Solved by verified expert
4.4 Ratings (585 Votes)

Answer a.
Net Income    110,000.00
Rodgers Winter Total
Division of Net Income:
Salary Allowance    25,000.00    30,000.00      55,000.00
Interest Allowance      7,200.00    10,800.00      18,000.00
Remaining Income    18,500.00    18,500.00      37,000.00
Net Income    50,700.00    59,300.00    110,000.00
Answer b.
Net Income      65,000.00
Rodgers Winter Total
Division of Net Income:
Salary Allowance    25,000.00    30,000.00      55,000.00
Interest Allowance      7,200.00    10,800.00      18,000.00
Excess of Allowances Over Net Income    (4,000.00)    (4,000.00)      (8,000.00)
Net Income    28,200.00    36,800.00      65,000.00

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Service! Read through the discussion on service characteristics, service gaps and service recovery/failure in Chapter 13,...

Biology
1.2K views

The cocoon in earthworm is the region of the body where the 2 worms anchor...

Basic Math
1.2K views

You and a friend go to Tacos Galore for lunch You order 6 soft tacos...

Basic Math
1.2K views

How many different four-letterpermutations can be formedusing four letters out of the firsttwelve in the...

Statistics
1.2K views

Question The following data set provides infromation on acres harvested and planted by year and...

Statistics
1.2K views

5 Getting teachers to come to school Elementary schools in rural India are usually small...

Algebra
1.2K views

REVIEW SUM 1 Q2 Write the point slope form of the equation of the line...

Accounting
1.2K views

The Seaside Corporation provides moving services to local clients. Seaside reported the following data for...

Accounting
1.2K views

Don't answer will give down vote skip Among specific procedures that contributes to good internal...

Accounting
1.2K views

Lorge Corporation has collected the following information after its first year of sales. Sales were...

Finance
1.2K views

Will upvote Internal rate of return For the project shown in the...

Accounting
1.2K views

4. Sacks Co. manufactures mobile cellular equipment and develops a price for the product by...