M. Elston and R. Ogle have partnership capital balances of $40,000 and $80,000, respectively. The partnership agreement indicates that net income or net loss should be shared equally. If net income for the partnership is $42,000, how should the net income be divided?
Answer to relevant QuestionsS. Pletcher and F. Holt share net income and net loss equally. (a) Which account(s) is (are) debited and credited to record the division of net income between the partners? (b) If S. Pletcher withdraws $30,000 in cash for ...Before the final distribution of cash, account balances are: Cash $27,000; S. Shea, Capital $19,000 (Cr.); L. Seastrom, Capital $12,000 (Cr.); and M. Luthi, Capital $4,000 (Dr.). Luthi is unable to pay any of the capital ...Your roommate argues that partnership assets should be revalued in situations like those in Question 21. In Question 21, Jaime Keller has a $41,000 capital balance in a partnership. She sells her interest to Sam Parmenter ...In Eastwood Co., capital balances are Irey $40,000 and Pedigo $50,000. The partners share income equally. Vernon is admitted to the firm with a 45% interest by an investment of cash of $58,000. Journalize the admission of ...McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000 for Smyth, (2) interest at ...
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