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3 years ago

At the end of its first year of operations on December 31, 2020, Carla Vista Company's accounts show the following.

Business

1 answer:

Fantom [35]3 years ago

6 0

Answer:

Partner Capital Drawings

Art Niensted $49,000 $22,900

Greg Bolen 13,600 34,000

Krista Sayler 10,800 23,500

1. Net income is $28,300. Income is shared 6:3:1

$ 28,300/10= $ 2830

Art Niensted gets (6/10 )* $ 28300= $ 16980

Art Niensted New Balance will be after deducting drawings = $ 16980- $ 22,900= ($ 5920)

Greg Bolen gets (3/10 )* $ 28300 = $ 8490

Greg Bolen New Balance will be after deducting drawings =$ 8490 - $ 34000= ($ 25,510)

Krista Sayler gets (1/10 )* $ 28300 = $2830

Krista Sayler New Balance will be after deducting drawings =$2830- $ 23500= ($ 20670)

2. Net income is $39,600. Niensted and Bolen are given salary allowances of $15,200 and $10,300 respectively. The remainder is shared equally

Salary is deducted .

$39,600- $ 15,200- $ 10,300= $ 14,100

$ 14,100/3 = $ 4700

Each partner will get $ 4700 after getting their salary

Art Niensted gets $ 15200 + $4700= $ 19900

Art Niensted New Balance will be $ 19900 - $ 22,900= ($3000)

Greg Bolen gets $ 10,300 + $ 4700= $ 15,000

Greg Bolen New Balance will be $ 15,000- $ 34000= ($19000)

Krista Sayler gets $ 4700

Krista Sayler New Balance will be 4700 - $ 23500= ($ 18,800)

3. Net income is $18,900. Each partner is allowed interest of 10% on beginning capital balances Niensted is given a $14,250 salary allowance. The remainder is shared equally

Calculation of Income = $18900- $14250/3 = $ 4650/3= $1550

Art Niensted = 10 % 0f $49,000 = $ 4900

Greg Bolen = 10 % 0f 13,600 = $ 1360

Krista Sayler = 10 % 0f 10,800 = % 1080

Art Niensted gets $ 4900 + $14250 +1550= $ 20700

Art Niensted New Balance will be after deducting drawings = = $ 20700- 22900= ($2200)

Greg Bolen gets $ 1360+1550 = $ 2910

Greg Bolen New Balance will be after deducting drawings =$ 2910- $ 34000= ( $31090)

Krista Sayler gets $ 1080 +$1550= $ 2360

Krista Sayler New Balance will be after deducting drawings =$ 2360 - $ 23500= ($ 20870)

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Journal entries on January 1:

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