5. Distribution of Income for Partnerships Julia Green invested $125,000 and Michael Spencer invested $ 80,000 in forming a partnership company and the information to calculate their 2021 net income is as follows: a. Salary Allowances: Julia=3,000 monthly, Michael= 5,000 monthly b. Interest Allowance: 10% on investment c. Any remaining balance will be allocated on the investment ratio. d. 2021 net income- $ 300,000 Required 1. Calculate the 2021 income for each partner 2. Journal entry

5. Distribution of Income for Partnerships Julia Green invested $125,000 and Michael Spencer invested $ 80,000 in forming a partnership company and the information to calculate their 2021 net income is as follows: a. Salary Allowances: Julia=3,000 monthly, Michael= 5,000 monthly b. Interest Allowance: 10% on investment c. Any remaining balance will be allocated on the investment ratio. d. 2021 net income- $ 300,000 Required 1. Calculate the 2021 income for each partner 2. Journal entry

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3SEB

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