• The partnership of Ashley F. and Charles K. generates $300,000 of net income for the 2019 fiscal year ending March 31, 2019. Income totaled $750,000 and expenses totaled $450,000. The partnership agreement provides that net income must be allocated to the partners according to the services provided to the partnership, and any remaining net income will also be allocated according to the contributions for the services provided. Ashley F. receives a monthly allowance (salary) of $5,200, while Charles K. receives a monthly allowance of $5,750.

Required:

Determine the amount allocated to each partner and prepare the journal entry to record the division of net income. Round percentages and answers to two decimal places.

Answer rating: 100% (QA)

Allocation The partnership agreement specifies allocating net income based on services provided We c... View the full answer