The partnership agreement of Damon and Wayans has the following provisions: 1. The partners are to...

 

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The partnership agreement of Damon and Wayans has the following provisions: 1. The partners are to earn 10 percent on the average capital. 2.Damon and Wayans are to earn salaries of $27,500 and $10,500, respectively. Any remaining income or loss is to be divided between Damon and Wayans using a 3. 70:30 ratio. Damon's average capital is $58,000 and Wayan's is $39,000. Required: Prepare an income distribution schedule assuming the income of the partnership is (a) $97,000 and (b) $34,000. (Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.) (a) Distribution of $97,000 income: Profit percentage Average capital Net income Interest on average capital Salary Residual income (deficit) Allocate Total (b) Distribution of $34,000 income: Profit percentage Average capital Net income Interest on average capital Salary Residual income (deficit) Allocate Total Damon % % Wayans % % Total % % The partnership agreement of Damon and Wayans has the following provisions: 1. The partners are to earn 10 percent on the average capital. 2.Damon and Wayans are to earn salaries of $27,500 and $10,500, respectively. Any remaining income or loss is to be divided between Damon and Wayans using a 3. 70:30 ratio. Damon's average capital is $58,000 and Wayan's is $39,000. Required: Prepare an income distribution schedule assuming the income of the partnership is (a) $97,000 and (b) $34,000. (Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.) (a) Distribution of $97,000 income: Profit percentage Average capital Net income Interest on average capital Salary Residual income (deficit) Allocate Total (b) Distribution of $34,000 income: Profit percentage Average capital Net income Interest on average capital Salary Residual income (deficit) Allocate Total Damon % % Wayans % % Total % %

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