Dividing Partnership Net Income Required: Steve Prince and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to Bernard of $135,090. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Prince and Bernard, 1:2. Prince and Bernard had $45,000 and $117,000, respectively, in their January 1 capital balances. Net income for the year was $237,000. How much is distributed to Prince and Bemard? Note: Compute partnership share. Prince: S Bernard:

Dividing Partnership Net Income Required: Steve Prince and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to Bernard of $135,090. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Prince and Bernard, 1:2. Prince and Bernard had $45,000 and $117,000, respectively, in their January 1 capital balances. Net income for the year was $237,000. How much is distributed to Prince and Bemard? Note: Compute partnership share. Prince: S Bernard:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3SEB

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