Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ramer and knox began a partnership by investing $5

Ramer and Knox began a partnership by investing $58,000 and $87,000, respectively. During its first...

80.2K

Verified Solution

Question

Accounting

Ramer and Knox began a partnership by investing $58,000 and $87,000, respectively. During its first year, the partnership earned $180,000. Prepare calculations showing how the $180,000 income is allocated under each separate plan for sharing income and loss.

3. The partners agreed to share income by giving a $54,000 per year salary allowance to Ramer, a $44,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $180,000.

Note: Enter all allowances as positive values. Enter losses as negative values.

image

\begin{tabular}{|l|l|l|l|} \hline & Ramer & \multicolumn{1}{c|}{ Knox } & \multicolumn{1}{c|}{ Total } \\ \hline Net Income & & & \\ \hline Salary allowances & & & \\ \hline Interest allowances & & & \\ \hline Total salary and interest & & & \\ \hline Balance of income & & & \\ \hline Balance allocated equally & & & \\ \hline Balance of income & & \\ \hline Shares of the partners & & & \\ \hline \end{tabular}

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