Abram, Macher, and Bailey have capital balances of $20,000, $30,000, and $50,000, respectively. The partners share profits and losses as follows:a. 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.с.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.)AbramMacherBaileyTotalNet income (Iloss)RequirementsCapital allocation:Abram1. Compute each partner's share of the $78,000 net income for the year.Мacher2. Journalize the closing entry to allocate net income for the year.BaileySalary allowance:AbramPrintDoneMacherBaileyTotal salary and capital allocationNet income (loss) remaining for allocationRemainder shared equally:AbramMacherBaileyTotal allocationNet income (loss) remaining for allocationNet income (loss) allocated to the partnersHelp me solve thisEtext pagesGet more help -Media -Clear allCheck answer

Capital Allocation:Abram = 30000*20000 / (20000 + 30000 + 50000) = $6,000Macher = 30000*30000 /…

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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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