Coburn (beginning capital, $57,000) and Webb (beginning capital $93,000) are partners. During 2022, the partnership earned net income of $65,000, and Coburn made drawings
Coburn (beginning capital, $57,000) and Webb (beginning capital $93,000) are partners. During 2022, the partnership earned net income of $65,000, and Coburn made drawings of $19,000 while Webb made drawings of $24,000. (a) Assume the partnership income-sharing agreement calls for income to be divided with a salary of $34,000 to Coburn and $29,000 to Webb, interest of 12% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
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Coburn and Webb are partners with beginning capital balances of 57000 and 93000 respectively The partnership earned a net income of 65000 during 2022 The incomesharing agreement stipulates that Coburn ...See step-by-step solutions with expert insights and AI powered tools for academic success
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