Calculate the net income of the partnership. Show the allocation of net income to each of...

  

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Calculate the net income of the partnership. Show the allocation of net income to each of the partners. Butler and John operate a music store as a partnership. The partnership agreement states that profits and losses are to be shared equally after adjusting for interest on capital, superannuation, drawings and salaries paid to the partners Income (S) Sales Interest from Advance to John Expenses ($) Cost of goods sold Salary-Butler Salary-employees Superannuation to Butler Superannuation to employees interest on capital to Butler interest on Capital to John interest on loan from CBA Drawings to Butler $896,900 2,000 416,000 63,000 110,000 14,000 13,000 7,000 9,500 19,000 32,000 Calculate the net income of the partnership. Show the allocation of net income to each of the partners. Butler and John operate a music store as a partnership. The partnership agreement states that profits and losses are to be shared equally after adjusting for interest on capital, superannuation, drawings and salaries paid to the partners Income (S) Sales Interest from Advance to John Expenses ($) Cost of goods sold Salary-Butler Salary-employees Superannuation to Butler Superannuation to employees interest on capital to Butler interest on Capital to John interest on loan from CBA Drawings to Butler $896,900 2,000 416,000 63,000 110,000 14,000 13,000 7,000 9,500 19,000 32,000

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To calculate the net income of the partnership and determine each partners share we need to first fi... View the full answer