The partnership agreement of J. Hansen and D. Hernandez reflects differences in service and capital contributions as
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- The partnership agreement of J. Hansen and D. Hernandez reflects differences in service and capital contributions as follows:
- (1) annual salary allowances of $30,000 to Hansen and $10,000 to Hernandez;
- (2) annual interest allowances of 10% of a partner's beginning-year capital balance, and
- (3) equal share of any remaining balance of profit or loss. Both partners had beginning-year capital balances of $50,000. In the first year, the partnership makes $30,000 in profit.
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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