FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Coburn (beginning capital, $60,000) and Webb (beginning capital $90,000) are partners. During 2020, the
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a. Assume the partnership income-sharing agreement calls for income to be divided 45% to Coburn and 55% to Webb. Prepare the
b. Assume the partnership income-sharing agreement calls for income to be divided with a salary of $30,000 to Coburn and $25,000 to Webb, with the remainder divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income.
c. Assume the partnership income-sharing agreement calls for income to be divided with a salary of $40,000 to Coburn and $35,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%–50%. 1. Prepare the journal entry to record the allocation of net income. 2. Prepare the entries to close the partners' drawing accounts. 3. Compute the partners' ending capital balances under this assumption.
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