My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
Essay (any type)
09/08/2022
Allocating profits and losses to the partners, preparing partnership financial statements On…
Allocating profits and losses to the partners, preparing partnership financial statements On October 1, 2014, Edwards, French, and Gill formed the E, F, and G partnership. Edwards contributed $21,000; French, $35,000; and Gill, $44,000. Edwards will manage the store; French will work in the store three-quarters of the time; and Gill will not work. Requirements 1. Compute the partners’ shares of profits and losses under each of the following plans: a. Net loss for the year ended September 30, 2015 is $42,000, and the partnership agreement allocates 45% of profits to Edwards, 35% to French, and 20% to Gill. The agreement does not discuss sharing of losses. b. Net income for the year ended September 30, 2015, is $97,000. The first $25,000 is allocated on the basis of relative partner capital balances. The next $48,000 is based on services, with $38,000 going to Edwards and $10,000 going to French. Any remainder is shared equally. 2. Using plan (b), prepare the partnership statement of partners’ equity. Assume Edwards, French, and Gill each withdrew $10,000 from the partnership during the year.
