Coburn (beginning capital, $ 62,000) and Webb (beginning capital $ 92,000) are partners. During 2022, the partnership earned net income of $ 73,000, and Coburn made drawings of $ 16,000 while Webb made drawings of $ 24,000.
Coburn (beginning capital, $ 62,000) and Webb (beginning capital $ 92,000) are partners. During 2022, the partnership earned net income of $ 73,000, and Coburn made drawings of $ 16,000 while Webb made drawings of $ 24,000.
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
Related questions
Question
100%
Answer question completely. NOTE: this question is one question with multiple parts answer question fully.
Transcribed Image Text:Coburn (beginning capital, $ 62,000) and Webb (beginning capital $ 92,000) are partners. During 2022, the partnership earned net
income of $ 73,000, and Coburn made drawings of $ 16,000 while Webb made drawings of $ 24,000.
(a)
Assume the partnership income-sharing agreement calls for income to be divided 40% to Coburn and 60% to Webb. 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
Debit
Credit
(b)
Assume the partnership income-sharing agreement calls for income to be divided with a salary of $ 34,000 to Coburn and $
25,000 to Webb, with the remainder divided 40% to Coburn and 60% to Webb. 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.)
Debit
Credit
Account Titles and Explanation
Attempts: 0 of 1 used Submit Answer
Save for Later
(c)
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 10% 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.)
Debit
Credit
Account Titles and Explanation
(d.
Compute the partners' ending capital balances under the assumption in part (c) above.
Ending capital
Coburn
2$
Webb
24
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College