E $19-2$B $($LO$3)$

$4.$clark: $$35,500$

ENTRIES FOR ALLOCATION OF NET INCOME John Clark and David Haase

decided to form a partnership on July $1,20-6.$ Clark invested $$60,000$ and Haase

invested $$40,000.$ For the fiscal year ended June $30,20-7,$ a net income of $$80,000$

was earned. Determine the amount of net income that Clark and Haase would receive

under each of the following independent assumptions:

There is no agreement concerning the distribution of net income.

Each partner is to receive $10\%$ interest on their original investment. The

remaining net income is to be divided equally.

Clark and Haase are to receive a salary allowance of $$25,000$ and $$30,000,$

respectively. The remaining net income is to be divided equally.

Each partner is to receive $10\%$ interest on their original investment. Clark

and Haase are to receive a salary allowance of $$25,000$ and $$30,000,$

respectively. The remaining net income is to be divided as follows: Clark,

$30\%$ and Haase, $70\%.$