Ebook Fundamental accounting principles (22th edition): Part 2

(BQ) Part 2 book "Fundamental accounting principles" has contents: Accounting for corporations, analysis of financial statements, job order costing, process costing, master budgets and planning, master budgets and planning decisions,.and other contents. | 529 Chapter 12 Accounting for Partnerships a. Shared equally. b. In the ratio of the partners’ initial capital investments. c. Salary allowances of $50,000 to Baker, $60,000 to Warner, and $70,000 to Rice, with the remain- ing balance shared equally. d. Interest allowances of 10% on the partners’ initial capital investments, with the remaining balance shared equally. 2. In sequence, each member is to present his or her income-sharing calculations with the team. 3. As a team, identify and discuss at least one other possible way that income could be shared. BTN 12-7 Daniel Blake and Craig Martineau are founding partners of their company, EcoScraps, LLC. Assume that Daniel and Craig decide to expand their business with the help of general partners. ENTREPRENEURIAL DECISION C1 Required 1. What details should Daniel, Craig, and their future partners specify in the general partnership agreements? 2. What advantages should Daniel, Craig, and their future partners be aware of with respect to organizing as a general partnership? 3. What disadvantages should Daniel, Craig, and their future partners be aware of with respect to organizing as a general partnership? BTN 12-8 Access Samsung’s website and research the company’s history. Also, review its 1938 to 1970 history at http://en. . 1. Byung-Chull Lee, the founder, organized/started the company in what year? What was the original name? 2. What was the original company’s operating focus? 3. Samsung lists its affiliated companies on its website and groups them into five areas. List those five areas. GLOBAL DECISION C1 Samsung ANSWERS TO MULTIPLE CHOICE QUIZ 1. e; Capital 5 $250,000 2 $50,000 2. a; $90,000 3 [$100,000y($150,000 1 $150,000 1 $100,000)] 5 $22,500 3. d; Jamison Net income . . . . . . . . . . . . Salary allowance . . . . . . . . . Interest allowance . . . . . . . Balance of income . . . . . . .