# Question: Coburn beginning capital 60 000 and Webb beginning capital 90 000 are

Coburn (beginning capital, \$60,000) and Webb (beginning capital \$90,000) are partners. During 2014, the partnership earned net income of \$80,000, and Coburn made drawings of \$18,000 while Webb made drawings of \$24,000.

Instructions
(a) Assume the partnership income-sharing agreement calls for income to be divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income.
(b) Assume the partnership income-sharing agreement calls for income to be divided with a salary of \$30,000 to Coburn and \$25,000 to Webb, with the remainder divided 45% to Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net income.
(c) Assume the partnership income-sharing agreement calls for income to be divided with a salary of \$40,000 to Coburn and \$35,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%–50%. Prepare the journal entry to record the allocation of net income.
(d) Compute the partners’ ending capital balances under the assumption in part (c).

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• CreatedJanuary 30, 2014
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