FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Jones, the managing partner, receives a bonus equal to 15 percent of the business’s profit.
- Each partner receives 11 percent interest on average capital investment.
- Any residual profit or loss is divided equally.
The average capital investments for 2021 were as follows:
Jones | $ | 85,000 |
King | 170,000 | |
Lane | 255,000 | |
The partnership earned $42,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners.
Find Bonus, Interest, and Reminder to allocate for each
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