Jakobs, Penn, and Lundt are partners with beginning-of-year capital balances of $400,000, $320,000, and$160,000, respectively.The partners agreed
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Jakobs, Penn, and Lundt are partners with beginning-of-year capital balances of $400,000, $320,000, and$160,000, respectively. The partners agreed to share income and loss as follows: Salary of $30,000 to Jakobs,$50,000 to Penn, and $36,000 to Lundt. An interest allowance of 8% on beginning-of-year capital balances. Anyremaining balance is to be divided on a 1:2:3 ratio respectively. If partnership net income for the year is$190,000, determine each partner's share.
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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