91Ó°ÊÓ

Casey Fisher and Logan Baylor formed a partnership in which the partnership agreement provided for salary allowances of \(\$ 40,000\) and \(\$ 35,000\), respectively. Determine the division of a \(\$ 20,000\) net loss for the current year.

Ben Bowman and Savannah Mapes formed a limited liability company with an operating agreement that provided a salary allowance of \(\$ 75,000\) and \(\$ 60,000\) to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdrew amounts equal to their salary allowances. a. Determine the division of \(\$ 188,000\) net income for the year. b. Provide journal entries to close the (1) income summary and (2) drawing accounts for the two members.

The capital accounts of Brad Hughes and Mitchell Isaacs have balances of \(\$ 120,000\) and \(\$ 100,000\), respectively. Leah Craft and Jayme Clark are to be admitted to the partnership. Craft buys one-fifth of Hughes's interest for \(\$ 30,000\) and one-fourth of Isaacs' interest for \(\$ 20,000\). Clark contributes \(\$ 50,000\) cash to the partnership, for which she is to receive an ownership equity of \(\$ 50,000\). a. Journalize the entries to record the admission of (1) Craft and (2) Clark. b. What are the capital balances of each partner after the admission of the new partners?

The accounting firm of Deloitte \& Touche is the largest international accounting firm in the world as ranked by total revenues. For the last two years, Deloitte \& Touche reported the following for its U.S. operations: \begin{tabular}{lrr} & \(\mathbf{2 0 0 7}\) & \multicolumn{1}{c}{\(\mathbf{2 0 0 6}\)} \\ \hline Revenue (in millions) & \(\$ 9,850\) & \(\$ 8,770\) \\ Number of professional staff lincluding partners) & 32,483 & 29,614 \end{tabular} a. For 2007 and 2006, determine the revenue per professional staff. Round to the nearest thousand dollars. b. Interpret the trend between the two years.