Left and Right are partners. Their capital accounts during 20X1 were as follows: Right, Capital Debit 8/23 Left, Capital T 6,000 Credit 1/1 4/3 10/31 Debit 3/5 9,000 Credit 1/1 7/6 30,000 8,000 6,000 Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows: 50,000 7,000 5,000 10/7 1. Each partner is to be credited 8 percent interest on his or her average capital (calculated after rounding to the nearest number of whole months). 2. Any remaining income or loss is to be divided equally. Required: Prepare an income distribution schedule. Note: Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.

Left and Right are partners. Their capital accounts during 20X1 were as follows: Right, Capital Debit 8/23 Left, Capital T 6,000 Credit 1/1 4/3 10/31 Debit 3/5 9,000 Credit 1/1 7/6 30,000 8,000 6,000 Partnership net income is $50,000 for the year. The partnership agreement provides for the division of income as follows: 50,000 7,000 5,000 10/7 1. Each partner is to be credited 8 percent interest on his or her average capital (calculated after rounding to the nearest number of whole months). 2. Any remaining income or loss is to be divided equally. Required: Prepare an income distribution schedule. Note: Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.

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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