Curly, Larry and Moe formed a partnership that provides residential plumbing services. The business has a December 31 year end. At the beginning of the year, the opening balance in Curly's capital account was $162,300, Larry's opening capital balance was $324,600 and Moe's opening capital balance was $243,450. The business reported a net income of $426,300. Their partnership agreement provided for sharing of net income (loss) on the following basis:

1. Salary allocation of $109,000 to Curly, $69,800 to Larry and $73,400 to Moe
2. Remainder shared where Curly gets 40%, Larry gets 20% and Moe gets 40%.

Prepare a table showing changes in the partners' capital during the year.

Do not enter dollar signs or commas in the input boxes.
Do not enter use the negative sign in your answers.
Round your answers to the nearest whole number.

	Total	Curly	Larry	Moe
Net Income	Answer
Salaries	Answer	Answer	Answer	Answer
Remainder	Answer
Share of remainder	Answer	Answer	Answer	Answer
Transferred to partner's capital		Answer	Answer	Answer

b) Prepare the journal entry to record the distribution of net income. Assume revenues and expenses have been closed to the income summary account.

Date	Account Title and Explanation	Debit	Credit
Dec 31	AnswerAccounts PayableAccounts ReceivableCapital, CurlyCapital, LarryCapital, MoeCashIncome SummaryService RevenueSupplies ExpenseTelephone ExpenseTravel Expense	Answer
	AnswerAccounts PayableAccounts ReceivableCapital, CurlyCapital, LarryCapital, MoeCashIncome SummaryService RevenueSupplies ExpenseTelephone ExpenseTravel Expense		Answer
	AnswerAccounts PayableAccounts ReceivableCapital, CurlyCapital, LarryCapital, MoeCashIncome SummaryService RevenueSupplies ExpenseTelephone ExpenseTravel Expense		Answer
	AnswerAccounts PayableAccounts ReceivableCapital, CurlyCapital, LarryCapital, MoeCashIncome SummaryService RevenueSupplies ExpenseTelephone ExpenseTravel Expense		Answer
	Allocate income to partners

Answer rating: 100% (QA)

Firstly lets calculate the each partners share by following the following steps A Calcula... View the full answer