4. The partnership firm of Tom, Dick, and Harry earned a revenue of $400,000 in 2020....

 

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4. The partnership firm of Tom, Dick, and Harry earned a revenue of $400,000 in 2020. The partnership agreement provided that each partner is to receive a $10,000 salary, as well as 10 percent interest on their respective average investments of $60,000, $100,000, and $20,000. Harry was also to be paid a special commission of 5% on sales while Tom and Dick should get a bonus of 10% of net income if the net income is in excess of $100,000. They share remaining income and losses in a 2:1:3 ratio, respectively. The following other information for the year is also given: Cost of Goods sold amounted to $120,000 Administrative expenses amounted to $50,000 and Selling expenses amounted to $30,000 Required: Show the distribution of income in proper format. Also, determine the capital account balance of the partners at the end of the year assuming the partners Tom and Dick had withdrawn $500 per month respectively and Harry withdrew $5,000 during the year. 4. The partnership firm of Tom, Dick, and Harry earned a revenue of $400,000 in 2020. The partnership agreement provided that each partner is to receive a $10,000 salary, as well as 10 percent interest on their respective average investments of $60,000, $100,000, and $20,000. Harry was also to be paid a special commission of 5% on sales while Tom and Dick should get a bonus of 10% of net income if the net income is in excess of $100,000. They share remaining income and losses in a 2:1:3 ratio, respectively. The following other information for the year is also given: Cost of Goods sold amounted to $120,000 Administrative expenses amounted to $50,000 and Selling expenses amounted to $30,000 Required: Show the distribution of income in proper format. Also, determine the capital account balance of the partners at the end of the year assuming the partners Tom and Dick had withdrawn $500 per month respectively and Harry withdrew $5,000 during the year.

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