Abram, Macher, and Bailey have capital balances of $20,000, $30,000, and $50,000, respectively. The partners share profits and losses as follows: The first $30,000 is divided based on the partners' capital balances. b. The next $30,000 is based on service, shared equally by Abram and Bailey. Macher does not receive a salary allowance. c. The remainder is divided equally. Read the requirements Requirement 1. Compute each partner's share of the $78,000 net income for the year. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.) Abram Macher Bailey Total Net income (loss) Requirements Capital allocation: Abram 1. Compute each partner's share of the $78,000 net income for the year. Macher 2. Journalize the closing entry to allocate net income for the year. Bailey Salary allowance: Abram Print Done Macher Bailey Total salary and capital allocation Net income (loss) remaining for allocation

Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $143,000, $89,000, and $58,000, respectively.   Assume instead that Daggett leaves the partnership. Daggett is paid $177,000 with a bonus to the retiring partner.Prepare the journal entry to record Daggett’s withdrawal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit select an account title                                                                        enter a debit amount enter a credit amount select an account title                                                                        enter a debit amount enter a credit amount select an account title                                                                        enter a debit amount enter a credit amount…

Watts and Lyon are forming a partnership. Watts invests $24,500 and Lyon invests $45,500. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon will work three-fourths. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments; (b) in proportion to the time devoted to the business; (c) a salary allowance of $18,000 per year to Lyon and the remaining balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $18,000 per year to Lyon, 9% interest on their initial capital investments, and the remaining balance shared equally. The partners expect the business to perform as follows: Year 1, $17,000 net loss; Year 2, $42,500 net income; and Year 3, $70,833 net income. Required: Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of…

Lewis, Clark, and Sacagewea have income ratios of 5:3:2 and capital balances of $36,040, $32,860, and $29,680, respectively. Noncash assets are sold at a gain and allocated to the partners. After creditors are paid, $109,180 of cash is available for distribution to the partners. How much cash should be paid to Clark?