Required information Problem 12-4A (Algo) Partnership income allocation, statement of partners' equity, and closing entries LO P2 (The following information applies to the questions displayed below] Mo, Lu, and Barb formed the MLB Partnership by making investments of $70,200, $273,000, and $436,800, respectively They predict annual partnership net income of $466,500 and are considering the following alternative plans of sharing income and loss (a) equally. (b) in the ratio of their initial capital investments, or (d salary allowances of $81,200 to Mo, $60,900 to Lu, and $91,500 to Barb, interest allowances of 10% on their initial capital investments, and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb roblem 12-4A (Algo) Part 3 Prepare the December 31 journal entry to close lIncome Summary assuming they agree to use plan (c) and that net income is 166,500 Mo, Lu, and Barb withdraw $35,700, $49700, and $65,700, respectively, at year-end. Also close the withdrawals accounts
Required information Problem 12-4A (Algo) Partnership income allocation, statement of partners' equity, and closing entries LO P2 (The following information applies to the questions displayed below] Mo, Lu, and Barb formed the MLB Partnership by making investments of $70,200, $273,000, and $436,800, respectively They predict annual partnership net income of $466,500 and are considering the following alternative plans of sharing income and loss (a) equally. (b) in the ratio of their initial capital investments, or (d salary allowances of $81,200 to Mo, $60,900 to Lu, and $91,500 to Barb, interest allowances of 10% on their initial capital investments, and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb roblem 12-4A (Algo) Part 3 Prepare the December 31 journal entry to close lIncome Summary assuming they agree to use plan (c) and that net income is 166,500 Mo, Lu, and Barb withdraw $35,700, $49700, and $65,700, respectively, at year-end. Also close the withdrawals accounts
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 12.1BPR
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