A. Lammers and B. Samec have decided their partnership earnings will be shared as follows: (a) 14%

Question:

A. Lammers and B. Samec have decided their earnings will be shared as follows: (a) 14% interest allowance on capital balances at beginning of year, (b) Remainder to be shared equally. Capital balances of A. Lammers and B. Samec at the beginning of the year are $81,000 and $32,000, respectively. Net income is $18,000 for the year. Record the journal entry to update the capital balances of A. Lammers and B. Samec on December 31.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...