Abram, Macher, and Bailey have capital balances of $20,000, $30,000, and $50,000, respectively. The partners share profits and losses as follows: The first $30,000 is divided based on the partners' capital balances. b. The next $30,000 is based on service, shared equally by Abram and Bailey. Macher does not receive a salary allowance. c. The remainder is divided equally. Read the requirements Requirement 1. Compute each partner's share of the $78,000 net income for the year. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.) Abram Macher Bailey Total Net income (loss) Requirements Capital allocation: Abram 1. Compute each partner's share of the $78,000 net income for the year. Macher 2. Journalize the closing entry to allocate net income for the year. Bailey Salary allowance: Abram Print Done Macher Bailey Total salary and capital allocation Net income (loss) remaining for allocation
Abram, Macher, and Bailey have capital balances of $20,000, $30,000, and $50,000, respectively. The partners share profits and losses as follows: The first $30,000 is divided based on the partners' capital balances. b. The next $30,000 is based on service, shared equally by Abram and Bailey. Macher does not receive a salary allowance. c. The remainder is divided equally. Read the requirements Requirement 1. Compute each partner's share of the $78,000 net income for the year. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.) Abram Macher Bailey Total Net income (loss) Requirements Capital allocation: Abram 1. Compute each partner's share of the $78,000 net income for the year. Macher 2. Journalize the closing entry to allocate net income for the year. Bailey Salary allowance: Abram Print Done Macher Bailey Total salary and capital allocation Net income (loss) remaining for allocation
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:Abram, Macher, and Bailey have capital balances of $20,000, $30,000, and $50,000, respectively. The partners share profits and losses as follows:
a. The first $30,000 is divided based on the partners' capital balances.
b. The next $30,000 is based on service, shared equally by Abram and Bailey. Macher does not receive a salary allowance.
с.
The remainder is divided equally.
Read the requirements.
Requirement 1. Compute each partner's share of the $78,000 net income for the year. (Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.)
Abram
Macher
Bailey
Total
Net income (Iloss)
Requirements
Capital allocation:
Abram
1. Compute each partner's share of the $78,000 net income for the year.
Мacher
2. Journalize the closing entry to allocate net income for the year.
Bailey
Salary allowance:
Abram
Print
Done
Macher
Bailey
Total salary and capital allocation
Net income (loss) remaining for allocation
Remainder shared equally:
Abram
Macher
Bailey
Total allocation
Net income (loss) remaining for allocation
Net income (loss) allocated to the partners
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