Question

On January 1, 2019, Bog, Cog, and Fog had capital balances of $60,000, $100,000, and $20,000 respectively in their partnership. In 2019, the partnership reported net income of $40,000. None of the partners withdrew any assets in 2019. The partnership agreed to share profits and losses as follows: a. A monthly salary allowance of $2,000, $2,500, and $4,000 to Bog, Cog, and Fog respectively. b. An annual interest allowance of 10 percent to each partner based on their capital balance at the beginning of the year. c. Any remaining balance to be shared in a 5:3:2 ratio (Bog:Cog:Fog). I NEED a schedule to allocate the 2019 net income to partners. In addition, assume all the income statement accounts for 2019 have been closed to the income summary account. PROVIDE an entry to record the division of the 2019 net income.

          On January 1, 2019, Bog, Cog, and Fog had capital balances of $60,000, $100,000, and $20,000 respectively in their partnership. In 2019, the partnership reported net income of $40,000. None of the partners withdrew any assets in 2019. The partnership agreed to share profits and losses as follows:
a. A monthly salary allowance of $2,000, $2,500, and $4,000 to Bog, Cog, and Fog respectively.
b. An annual interest allowance of 10 percent to each partner based on their capital balance at the beginning of the year.
c. Any remaining balance to be shared in a 5:3:2 ratio (Bog:Cog:Fog).

I NEED a schedule to allocate the 2019 net income to partners. In addition, assume all the income statement accounts for 2019 have been closed to the income summary account. PROVIDE an entry to record the division of the 2019 net income.

Added by Jose Luis A.

Question

Please give Ace some feedback