John Prado and Ayana Nicks formed a partnership, dividing income as follows: 1. Annual salary allowance to
Question:
1. Annual salary allowance to Prado, $10,000 and Nicks, $28,000.
2. Interest of 5% on each partner's capital balance on January 1.
3. Any remaining net income divided equally?
Prado and Nicks had $20,000 and $50,000, respectively, in their January 1 capital balances.
Net income for the year was $30,000.
How much net income should be distributed to Prado and Nicks?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting
ISBN: 978-1285743615
26th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Question Posted: