Assume the partnership income-sharing agreement calls for income to be divided with a salary of $38,000 to Coburn and $33,000 to Webb, interest of 12% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Income Summary Webb, Capital Coburn, Capital Debit 72000 Credit 36340 35660
Assume the partnership income-sharing agreement calls for income to be divided with a salary of $38,000 to Coburn and $33,000 to Webb, interest of 12% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Income Summary Webb, Capital Coburn, Capital Debit 72000 Credit 36340 35660
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume the partnership income-sharing agreement calls for income to be divided with a salary of $38,000 to Coburn and
$33,000 to Webb, interest of 12% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record
the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Income Summary
Webb, Capital
Coburn, Capital
Debit
72000
Credit
36340
35660
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