The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence: • Jones, the managing partner, receives a bonus equal to 15 percent of the business's profit. • Each partner receives 20 percent interest on average capital investment. • Any residual profit or loss is divided equally. The average capital investments for 2021 were as follows: Jones King Lane $ 180,000 240,000 300,000

On December 31, the capital balances and income ratios in Sunland Company are as follows. Partner   Capital Balance   Income Ratio Trayer   $ 64,500     50%   Emig   35,000     30%   Posada   34,500     20% (1)   Each of the continuing partners agrees to pay $ 19,600 in cash from personal funds to purchase Posada’s ownership equity. Each receives 50% of Posada’s equity. (2)   Emig agrees to purchase Posada’s ownership interest for $ 24,200 cash. (3)   Posada is paid $ 37,700 from partnership assets, which includes a bonus to the retiring partner. (4)   Posada is paid $ 25,780 from partnership assets, and bonuses to the remaining partners are recognized. Journalize the withdrawal of Posada under each of the following assumptions.    If Emig’s capital balance after Posada’s withdrawal is $ 38,930, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada?

Jenkins, Willis, and Trent invested $252,000, $441,000, and $567,000, respectively, in a partnership. During its first year, the firm recorded profit of $639,000. d- The partners agreed to share profit by providing annual salary allowances of $123,000 to Jenkins, $133,000 to Willis, and $68,000 to Trent; allowing 10% interest on the partners’ beginning investments; and sharing the remainder equally. Record to close income summary account.

The partnership contract of Ali & Yousif LLP provided for salaries of $45,000 to Ali and $35,000 to Yousif, with any remaining income or loss divided equally. During 2005, pre-salaries income of Ali & Yousif LLP was $100,000. During 2020, Ali's share of net income is: O a. 55000 O b. 37000 O c. 35000 O d. 45000