Excel Spreadsheet Template Computing partners' shares of net income and met loss 3 Required 1. Journalize the partners' initial investments 2. Prepare the partnership balance sheet immediately after its formation on January 1, 2017 3. Calculate the partners' Capital balances on December 31, 2017 Problem 12-2A Sheila Sasso, Karen Schwimmer, and Jim Perry have formed a partnership. Sasso invested 560,000. Schwimmer 5120,000, and Perry $180,000 Sasso will manage the store, Schwimmer will work in the store three-quarters of the time, and Perry will not work in the business. Required 1. Compute the partners' shares of profits and losses under each of the following plans: Netloss is $20.500, and the partnership agreement allocates 45 percent of profits to Susso, 35 percent to Schwimmer, and 20 percent to Perry. The agreement does not discuss the sharing of losses b. Net Income for the year is $136,500. The first 545,000 is allocated on the basis of part- ners' Capital investments. The next 575,000 is based on service, with $45,000 going to Sasso and $30.000 going to Schwimmer. Any remainder is shared equally c Net loss for the year is $136,300. The first 545,000 is allocated on the basis of partners Capital investments. The next $75,000 is based on service, with $45,000 going to Sasso and 530,000 going to Schwimmer. Any remainder is shared equally, 2. Revenues for the year were $858,000 and expenses were $721,500. Under plan (b), prepare the partnership income statement for the year. Assume a year end of September 30, 2017 3. How will what you have learned in this problem help you manage a partnership? Problem 12-3A SAC & Company is a partnership owned by K. Santiago, R. Astorga, and J. Camino, who share profits and losses in the ratio of 1:34. The adjusted trial balance of the partnership (in condensed form) at June 30, 2017, follows: Capital amounts for the balance sheet of a partnership 2) 3 2. Saron541.500 SAC & COMPANY Adjusted Trial Balance June 30, 2017 $ 166,000 800,000 $ 690,000 152,000 282.000 428.000 Cash Noncash assets abilities K. Santiago, capital R. Astorga, capital J. Camino, capital K. Santiago, withdrawals R. Astorga, withdrawals J. Camino, withdrawals Revenues Expenses Totale 126,000 272.000 312.000 748.000 634.000 $200.000 52 500.000 Required 1. Prepare the June 30, 2017, entries to close the Revenue, Expense, Income Summary, and Withdrawals accounts 2. Using T-accounts, insert the opening balances in the partners' Capital accounts, post the closing entries to the Capital accounts, and determine each partner'sending Capital balance. Chapter 12 Partnerships 715 acct1 Aalbcdbd View Acrobat Aabbcode AaBbcdbd Normand Review AalbCade Mailings New AU References Layout esign A AA 115 AA PERRY Q1 P12-2A Page 715 (25-30 min.) Req. 1 (profit and loss allocations) Schwimmer and any Action of Pros and Loss SASSO SCHWIMMER Toinet Alocation to the partners Show con in this colum TOTAL $70.500) Soxd Sood Sesso Schwimmer Perry Sex O SARD Nets for location Niet loss located to partners PERRY SASSO SCHWIMMER $13,500 Tot income Alocation to the parts Show calon in this columne Sharing of first $45.000 profil based on capital investments SA Schwim Perry SEJOS 91,500 Total Net income for location Sharing of next $75,000 of profit based on service SA TRU ACCT 12 A Schmer Tour Nincome lett for location Ramader whered Engash (Canada) GDL Pr Live Lr Ps A a acct1221_A1_Template Acrobat View Review Mailings out References ARCH Abcdl ABCD Aalbode NormalCond Notebo Styles Pane - A As- A APA ADCT 1321 A2 OU Xxx Schwimmer To Net Income for allocation Remainder shared S (516.500.10 Schwim (16.500 19) Perry ($16.500) To Net inome for location LOG LUE income wcaled Ne partners Swew TRU I Live acct1221_A1_Template Layout References Mailings Review View Acrobat E 21 - A A A Abcd ABCDdE ABCDdE AalbCcDdE Bulletinden Normal Normal and Nalebo ADA Style Pane And To PERRY wer, and Allocation of Poland SASSO SCHWIMMER Total net income foss) Allocation to the pare Show coations in this com TOTAL $(136.500 SKO SELE SUX Sharing of first $45.000 profe based on cal investments SA Schwer Pery($100,000/5.100.000 $45.000 Tool Net income lot for location Sharing of 375.000 of profit based on service SA Schwimmer COOL Net Income left for allocation Remainder shared equally Se Schwimmer couco Perry Total Net Income left for a location Net income allocated to ALONI Reg 2 scom) Sasse Schwimmer, and Perry Incoment For the Year Ended September 30, 2017 TRUL ACOL Sasso, 35 percent to Schwimmer, and 20 percent to Perry. The agreement does not ices on Sheila Sasso, Karen Schwimmer, and Jim Perry have formed a partnership. Sasso invested will work in the store three-quarters of the time, and Perry will not work in the business. $60,000, Schwimmer $120,000, and Perry $180,000. Sasso will manage the store, Schwimmer 1. Compute the partners' shares of profits and losses under each of the following plans: Problem 12-2A Required Excel Spreadsheet Template Computing partners' shares of net income and net loss 3 1. b. Net income allocated to Sasso, $58,000 of discuss the sharing of losses. b. Net income for the year is $136,500. The first $45,000 is allocated on the basis of part- ners' Capital investments. The next $75,000 is based on service, with $45,000 going to Sasso and $30,000 going to Schwimmer. Any remainder is shared equally. c. Net loss for the year is $136,500. The first $45,000 is allocated on the basis of partners' Capital investments. The next $75,000 is based on service, with $45,000 going to Sasso and $30,000 going to Schwimmer. Any remainder is shared equally. 2. Revenues for the year were $858,000 and expenses were $721,500. Under plan (b), prepare the partnership income statement for the year. Assume a year end of September 30, 2017. 3. How will what you have learned in this problem help you manage a partnership? Q1 P12-2A Page 715 (25-30 min.) Req. 1 (profit and loss allocations) Schwimmer und Perry Allocation of Profits and losse SASSO SCHWIMMER & Total (not loss Allocation to the partners Show colons in this columns PERRY TOTAL 5(70.500) So Sassa Schwimmer Perry Total Netloss for allocation Not loss allocated to partners SU S. SD SRO SASSO SCHWIMMER PERRY $136.500 b. Total income Alocation to the partners Show Calons in this column Sharing of first $45,000 profit based on capital investments S. Schwimmer S Perry SOLO 91.500 Total Net income left for allocation Sharing of next $75,000 of profit based on service Sassa LK Thu Open NG KLE Schwim To Net Income for con Reminder word equally Sasa 16.500 1731 Schw(18.500 31 Parry S500 x 10 Total Net income for location YUX Income Net partner med Swed Perry Allocation of Profits and Los SASSO SCHWIMMER e Total income Alocation to the partners: Show callations in this column PERRY TOTAL $130,500) Sharing of first $45,000 profil based on capital investments SLIDE S. x Dowd Schwimmer Perry (180,000/9360,000 545.000 Total Net income for allocation Sharing of next 375.000 of profit based on service Sassa Schwimmer Total Net income for allocation WE . bou Ramainder sadecual Sasso Schwimmer Perry Total Net Income left for allocation Not income wed to partners bo XL. 10 SURA Sassa Schwer, and Perry Income Start For the Year Ended September 30, 2017 ACC Roq3