Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. humbolt hardware company is a partnership with net

Humbolt Hardware Company is a partnership with net income of $104,000 and needs to split...

50.1K

Verified Solution

Question

Accounting

Humbolt Hardware Company is a partnership with net income of $104,000 and needs to split this between partners Ethel Hardachre and Manny Kaur. As Ethel Hardachre works full-time in the business, they have an annual salary of $39,200 and contributed 22 of new clients. The other partner, Manny Kaur, put in 6 new clients and has an annual salary of $21,750. The partners split $8,400 of the net income as additional salary based upon the ratio of new clients. The partners invested $22,750(Ethel Hardachre) and $10,875(Manny Kaur). Each partner will receive 8% on their invested capital. Any residual net income or loss will be split based upon the ratio of invested capital. Prepare a schedule (showing calculations) of the split of net income or loss amongst the partners.
image

Answer & Explanation Solved by verified expert
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

Geometry
1.2K views

C What is an equation of the line that passes through the point 4 4...

Basic Math
1.2K views

Let a 3 5 and b 0 k Find k so that a and b...

Calculus
1.2K views

Solve each inequality log12 2x 1 log12 5x 16 O xx 5 O no solution...

Calculus
1.2K views

f x The graphs of f x and g z are given above Use them...

Algebra
1.2K views

Consider the following reduced matrix. This matrix represents a solution to a system of linear...

Algebra
1.2K views

For what value of K do the simultaneous equations 2x 3y 1 4x 6y K...

Algebra
1.2K views

What are three methods used to Choose the correct answer bel Loing intoroconto dotor

Accounting
1.2K views

Question 2 of 7 2.25/3 (d) Using Taccounts, enter the opening balances in the...

Accounting
1.2K views

Chance Enterpilses leased equipment from Third Bank Leasing on January 1. 2021. Chance elected the...

Accounting
1.2K views

Problem 3: Job Order Costing and Statement Preparation Selected T-accounts of Moore Company...

Accounting
1.2K views

Exercise 6.11 Journal Entries Shorts Company has three process departments: Mixing, Encapsulating, and Bottling ginning...

Finance
1.2K views

Problem 5 Part 1 - Attempt 1/5 for 10 pts. Which of the following statements...