2. Complete the following practice exercise by recording your responses on the spreadsheet template.
   1. Booth, Good and Wood are partners, sharing all profits and losses equally. Show the entry to allocate the net income or net loss under the following unrelated situations: (a) net income of $45 000 (b) net loss of $15 000.
   
   2. Kelly and Paino are partners who earn an annual salary of $10 000 and $15 000 respectively, and have an income ratio of 4:3. Show the entry to allocate the net income, based on the following unrelated situations: (a) net income of $55 000 (b) net income of $20 000 (c) net loss of $8 000.
   
   3. Fulton, Read and Moore are partners who earn an annual salary of $50 000, $40 000, and $20 000 respectively, and earn 10% on their capital balances which are $70 000, $60 000, and $30 000 respectively. They also have an income ratio of 40%, 40% and 20% respectively. Show the entry to allocate the net income or net loss under the following unrelated situations: (a) net income of
   $200 000 (b) net income of $120 000 (c) net loss of $30 000.

Answer rating: 100% (QA)

Sure here are the requested entries for each situation 1 Booth Good and Wood are partners sharing al... View the full answer