Zheng invested $152,000 and Murray invested $252,000 in a partnership. They agreed to share income and loss by allowing a $73,000 per year salary allowance to Zheng and a $53,000 per year salary allowance to Murray, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the remaining balance to be shared equally. Assuming net income for the current year is $131,000.

What is the journal entry to allocate net income? 

Answer rating: 100% (QA)

To allocate the net income in accordance with the partnership agreement the journal entry would be a... View the full answer