Principles of Accounting I

Question 1 What is mutual agency as it relates to a partnership? Answer: Question 2  What is Articles of Partnership? Answer: Question 3  What is residual profit as it relates to a partnership? Answer: Question 4  Sally and Andy are partners in Just Hats, LLC.  Andy works in the business for an agreed salary draw of $4,000 per month.  Sally has invested $200,000 in the business and Andy invested $100,000.  THe net income of the business is $168,000 for the year.  Income is distributed based on the investment of each partner after allocation for salary.  How much net income is allocated to Sally? Answer: Explanation: Question 5  What is an accounting system? Answer: Question 6  Mary and David are partners who share profits and losses on a 3:1 basis.  This means Mary receives 75% and David receives 25% of income after any allocations.  Mary receives a salary allowance of $15,000. Earnings for the period total $51,000. What will be the total amount credited to Mary's Capital account when the Income Summary account is closed? Answer: Explanation: Question 7  What is meant by "limited life" as it relates to partnerships? Answer: Overview 1. The end of the semester is a good time to think about your math, accounting, and Excel skills. 2. Excel is widely considered a basic skill requirement for accounting and finance jobs. Discussion Requirements Take a moment to think about, and then comment on each of the following questions: 1. What has been your experience in this class using Excel to solve math problems? 2. At this point, how comfortable are you using Excel for business purposes? When do you still use your calculator? 3. What do you think would help you improve your Excel skills, if you need to? Question 1 What is mutual agency as it relates to a partnership? Answer: Question 2  What is Articles of Partnership? Answer: Question 3  What is residual profit as it relates to a partnership? Answer: Question 4  Sally and Andy are partners in Just Hats, LLC.  Andy works in the business for an agreed salary draw of $4,000 per month.  Sally has invested $200,000 in the business and Andy invested $100,000.  THe net income of the business is $168,000 for the year.  Income is distributed based on the investment of each partner after allocation for salary.  How much net income is allocated to Sally? Answer: Explanation: Question 5  What is an accounting system? Answer: Question 6  Mary and David are partners who share profits and losses on a 3:1 basis.  This means Mary receives 75% and David receives 25% of income after any allocations.  Mary receives a salary allowance of $15,000. Earnings for the period total $51,000. What will be the total amount credited to Mary's Capital account when the Income Summary account is closed? Answer: Explanation: Question 7  What is meant by "limited life" as it relates to partnerships? Answer: Overview 1. The end of the semester is a good time to think about your math, accounting, and Excel skills. 2. Excel is widely considered a basic skill requirement for accounting and finance jobs. Discussion Requirements Take a moment to think about, and then comment on each of the following questions: 1. What has been your experience in this class using Excel to solve math problems? 2. At this point, how comfortable are you using Excel for business purposes? When do you still use your calculator? 3. What do you think would help you improve your Excel skills, if you need to?