During the first year, the Martin and Steven partnership earned an income of $10,000. 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?

Transcribed Image Text:

Cash Office Equipment Martin, Capital Steven, Capital To record formation of partnership 24,000 16,000 24,000 16,000 Cash Office Equipment Martin, Capital Steven, Capital To record formation of partnership 24,000 16,000 24,000 16,000

Answer rating: 100% (QA)

The distribution o... View the full answer