A. Langer and B. Sharpless have decided their partnership earnings will be shared as follows: (a) 12%
Question:
A. Langer and B. Sharpless have decided their partnership earnings will be shared as follows: (a) 12% interest allowance on capital balances at beginning of year, (b) With the remainder to be shared equally. Capital balances of A. Langer and B. Sharpless at the beginning of the year are $83,000 and $27,000, respectively. Net income is $19,000 for the year. Record the journal entry to update the capital balances of A. Langer and B. Sharpless 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...
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