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:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 Bernard?
Note: Compute partnership share.
Prince: S
X
Bernard: S
X
L
Transcribed Image Text: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 Bernard? Note: Compute partnership share. Prince: S X Bernard: S X L
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