During the first year, the Bob and Kim partnership in SE 2 earned an income of $5,000.

Question:

During the first year, the Bob and Kim partnership in SE 2 earned an income of $5,000. Assume the partners agreed to share income and losses by figuring interest on the beginning capital balances at 10 percent and dividing the remainder equally. How much income should be transferred to each Capital account?

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...