Bob and Jack have formed a partnership and contributed a capital of 150,000$ and 250,000$ respectively...
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Bob and Jack have formed a partnership and contributed a capital of 150,000$ and 250,000$ respectively (Total capital 400,000$). During their first year of operations, the partnership earned 200,000$. Their profit and loss sharing agreement states that the first 100,000$ is divided based on the partners' capital balances and the remaining is based on services shared equally by Bob and Jack. (20 points). a. Compute each partner's share of the 200,000$ net income. b. Journalize the closing entry to allocate net income for the year. Bob and Jack have formed a partnership and contributed a capital of 150,000$ and 250,000$ respectively (Total capital 400,000$). During their first year of operations, the partnership earned 200,000$. Their profit and loss sharing agreement states that the first 100,000$ is divided based on the partners' capital balances and the remaining is based on services shared equally by Bob and Jack. (20 points). a. Compute each partner's share of the 200,000$ net income. b. Journalize the closing entry to allocate net income for the year.
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Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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